Conscious Choice: Eco-Labels Unpeeled

May 2004

Eco-Labels Unpeeled

Clues for sleuthing credible labels among deceptive claims

by JoAnn Milivojevic

What’s in a name? Plenty, when it comes to eco-labels, and plenty of nothing.

Eco-labels — also known as environmental labels — suggest that a product is good for the environment or safe for human health. Everything from fine food to furniture polish is getting into the act of green labeling. In some cases, it’s just an act — or, more accurately, an act of marketing.

How can you tell which eco-labels are credible? It’s not easy. This story provides a few clues. A downloadable guide, with data provided by Consumers Union, evaluates several well-known labels and common claims. (For more on hundreds of claims and labels, see www.eco-label.org.) And the “Earth-Friendly” story that follows illustrates why consumer advocates call some labels misleading.

Eco-labels are proliferating because green marketing is profitable. Nationwide, organic food sales topped $13 billion in 2003, according to the Organic Trade Association. The profits on so-called “specialty foods” are well above average, reports a National Grocers Association survey. And the growth is explosive. “By the year 2023, assuming growth rates stay the same, most food sold in grocery stores in the U.S. and Canada will be organic,” said Ronnie Cummins, executive director of the Organic Consumers Association.

Few consumers can keep up with all the eco claims made within such a booming marketplace. “Coffee can be fair trade, shade grown and bird friendly. But when we ask consumers if they get it, they just don’t,” said Gwynne Rogers of the Natural Marketing Institute.

Standardization and uniformity would better serve the public. Until that day comes, here’s a look at what’s what.

Common Labels, Uncommon Meanings

Words like “fresh,” “natural” and “kosher” imply a health benefit. In reality, there may be none.

“Natural” is particularly problematic when it comes to meat, said Urvashi Rangan, who directs the eco-labels project at Consumers Union. “It does not mean the animal was raised in a more natural environment, nor does it mean it wasn’t eating any animal byproducts or antibiotics. It has nothing to do with the production method. Natural pertains to the cut of meat and means that no colors or artificial ingredients were added to the cut.”

Conversely, kosher has to do only with production, or more graphically, the slaughtering method. It doesn’t apply to the animal’s feed or welfare.

Fresh is supposed to mean not frozen. But that may not always be true either. “We went bowling with chickens labeled as fresh,” Rangan said. “They were so frozen we could slide them across the floor.”

Then there are meat products that tout “no antibiotics,” “no hormones,” “grass fed” or “free range.” Such claims suggest the animals roamed the great outdoors and nibbled on grass and natural foods. But the fact is that a “free range” animal’s exposure to the outdoors can be as little as a few minutes a day. (Chickens get the shortest end of the sunshine stick.)

The U.S. Department of Agriculture is developing standards for such terms, but has set no deadline. Until it does, the meaning of such phrases will continue to vary from label to label. This lack of consistency enables the unscrupulous and the ethical to sit side by side.

The situation is much the same in the personal care aisle. Products that bear the Leaping Bunny logo don’t test on animals, and don’t include ingredients that have been tested on animals. The Bunny hops its talk. But products labeled “cruelty-free” are subject to interpretation — by the manufacturer. Outside parties may have tested ingredients on animals even though the maker of the final product did not.

Likewise, no third party verifies claims such as “allergy tested,” “eco safe,” “natural” or “nontoxic.” These are just words selected by the company that’s selling the product. What did they allergy test for? In what way is the product safe for what part of what environment?

Organic, A Cut Above

To make sure ethical organic producers’ efforts didn’t get lost in the marketing shuffle, the trade organized itself to hammer out standards and request government regulation. It took 10 years to determine what “organic” means, and how to regulate it.

The result is that while the term remains fuzzy when it comes to personal care items, it’s regulated in food. The production and agricultural requirements are verified by the USDA. (See “So What’s Organic?” at right.)

Nature’s Path Food, an organic cereal maker, was among the first to obtain third party organic certification. “Branding is important,” said founder Arran Stephens. “Whatever the message is should be a reflection of reality. It’s also important for companies to focus on the triple bottom line — socially responsible, environmentally sustainable and profitable.”

Another way to judge whether a company practices what it preaches is by how it discloses its production methods and lists ingredients.

“In brand management we talk a lot about brand trust,” explained Stacey Kelly, marketing manager of nSpired Natural Foods. “Your practices have to reflect your ability to communicate your values. For example, does a company have a dedicated specialist to answer questions? Or does the customer end up in endless voicemail trees?”

Brought to You By

Organizations such as the Rainforest Alliance and the Nature Conservancy have also entered the eco-labeling scene, as have niche groups that have created labels such as “Fair Trade” and “Bird Friendly.”

You’ll find the “Fair Trade” label on such items as bananas, chocolate, coffee and tea. The latter three items are mostly organic as well. The certifying organization, Transfair USA, believes in sustainability and that farmers in developing countries should be paid a fair price. Transfair defines fair price as enough money to feed families and send children to school. The Fair Trade label is a useful one, according to the Consumers Union, because it has meaningful and clear standards.

The Rainforest Alliance’s label also stands for social responsibility and sustainable agriculture. Consumers can trust that the product (eg. coffee, tea, citrus fruit, flowers) was grown in an environmentally responsible manner with fair labor practices in place.

On the niche marketing front, there’s an appeal to birdwatchers. The U.S. Census Bureau notes that there are some 46 million enthusiasts nationwide. Those who love coffee and birds can now look for products bearing the “Bird Friendly” seal granted by Smithsonian Migratory Bird Center. The label is verifiable and consistent, and thus of value to consumers. In essence, bird friendly coffee is organic and shade grown, protecting the habitats of birds.

The Nature Conservancy, on the other hand, is involved in cause-related marketing. Its label on a product merely means that a portion of the proceeds supports the organization — not that that the product is in any way natural or healthy.

Confusing? Sure. There are labels to trust and those that should raise a skeptical eyebrow. Avoid the hype. Start by using the chart to help determine what is a general claim and what is a meaningful label. That way, if you’re inclined to shop according to your values, you’ll be better able to put your dollars where your ethics are.

JoAnn Milivojevic is a freelance writer who enjoys reading the fine print. She can be reached by e-mail

Click here to download a guide to eco labels (116k pdf).

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