BILL NUMBER: SB 426 CHAPTERED BILL TEXT CHAPTER 642 FILED WITH SECRETARY OF STATE OCTOBER 6, 1995 APPROVED BY GOVERNOR OCTOBER 5, 1995 PASSED THE SENATE SEPTEMBER 5, 1995 PASSED THE ASSEMBLY SEPTEMBER 1, 1995 AMENDED IN ASSEMBLY JULY 28, 1995 AMENDED IN ASSEMBLY JULY 1, 1995 AMENDED IN SENATE MAY 15, 1995 AMENDED IN SENATE APRIL 4, 1995 AMENDED IN SENATE MARCH 20, 1995 INTRODUCED BY Senator Leslie FEBRUARY 15, 1995 An act to amend Section 17580 of, to add Section 17580.5 to, and to repeal Section 17508.5 of, the Business and Professions Code, relating to environmental advertising. LEGISLATIVE COUNSEL'S DIGEST SB 426, Leslie. Environmental advertising. Under existing law, it is unlawful for a person to represent that a consumer good, as defined, which it manufactures or distributes, is "ozone friendly," "biodegradable," "photodegradable," "recyclable," or "recycled," unless that article meets specified definitions or meets definitions established in trade rules adopted by the Federal Trade Commission. The bill would repeal this provision. Under existing law, a person who represents that a consumer good that it manufactures or distributes is not harmful to, or is beneficial to, the natural environment, through the use of specified environmental terms, is required to maintain in written form in its records information and documentation supporting the validity of the representation, as specified. This information and documentation is required to be furnished to any member of the public upon request and to be fully disclosed to the public, within the limits of all applicable laws. A violation of these requirements is a misdemeanor. This bill would also provide that it is unlawful for a person to make any untruthful, deceptive, or misleading environmental marketing claim , whether explicit or implied. This bill would provide that "environmental claim" includes any claim contained in the "Guides for the Use of Environmental Marketing Claims" published by the Federal Trade Commission. This bill would provide a defense to a suit or complaint brought under its provisions, as specified. Violation of this provision would be a misdemeanor. This bill would therefore create a new crime and impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that it is the public policy of the state that environmental marketing claims, whether explicit or implied, must be substantiated by competent and reliable evidence to prevent deceiving or misleading consumers about the environmental impact of products and packages. Accurate and useful information about the environmental impact of products and packages will not be available to consumers unless uniform standards for environmental marketing claims, such as the Federal Trade Commission Guidelines for Environmental Marketing Claims, are adopted by the various states. SEC. 2. Section 17508.5 of the Business and Professions Code is repealed. SEC. 3. Section 17580 of the Business and Professions Code is amended to read: 17580. (a) Any person who represents in advertising or on the label or container of a consumer good that the consumer good that it manufactures or distributes is not harmful to, or is beneficial to, the natural environment, through the use of such terms as "environmental choice," "ecologically friendly," "earth friendly," "environmentally friendly," "ecologically sound," "environmentally sound," "environmentally safe," "ecologically safe," "environmentally lite," "green product," or any other like term, shall maintain in written form in its records the following information and documentation supporting the validity of the representation: (1) The reasons why the person believes the representation to be true. (2) Any significant adverse environmental impacts directly associated with the production, distribution, use, and disposal of the consumer good. (3) Any measures that are taken by the person to reduce the environmental impacts directly associated with the production, distribution, and disposal of the consumer good. (4) Violations of any federal, state, or local permits directly associated with the production or distribution of the consumer good. (5) Whether or not, if applicable, the consumer good conforms with the uniform standards contained in the Federal Trade Commission Guidelines for Environmental Marketing Claims for the use of the terms "recycled," "recyclable," "biodegradable," "photodegradable," or "ozone friendly." (b) Information and documentation maintained pursuant to this section shall be furnished to any member of the public upon request. (c) For the purposes of this section, a wholesaler or retailer who does not initiate a representation by advertising or by placing the representation on a package shall not be deemed to have made the representation. (d) It is the intent of the Legislature that the information and documentation supporting the validity of the representation maintained under this section shall be fully disclosed to the public, within the limits of all applicable laws. SEC. 4. Section 17580.5 is added to the Business and Professions Code, to read: 17580.5. (a) It is unlawful for any person to make any untruthful, deceptive, or misleading environmental marketing claim, whether explicit or implied. For the purpose of this section, "environmental marketing claim" shall include any claim contained in the "Guides for the Use of Environmental Marketing Claims" published by the Federal Trade Commission. (b) It shall be a defense to any suit or complaint brought under this section that the person's environmental marketing claims conform to the standards or are consistent with the examples contained in the "Guides for the Use of Environmental Marketing Claims" published by the Federal Trade Commission. SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.