On 16 October 2024, the Federal Trade Commission (FTC) announced its final “Click-to-Cancel” Rule that applies to businesses that offer goods and services through automatically renewing payment plans, free or discounted trials that convert into full plans, or other “negative option features” that interpret a consumer’s silence as permission to keep charging them (collectively, “recurring subscriptions”). Under the finalized rule, the FTC may seek civil penalties of over USD 50,000 per violation, injunctive relief and consumer redress for companies that violate the requirements of having detailed transparent, consent and simple cancellation processes for recurring subscriptions and memberships.

Legal action against sustainability or green claims (‘greenwashing’) is on the rise. Consumers and NGOs are increasingly seeking out legal avenues to hold companies accountable for allegedly misleading advertisements on sustainability. One of these avenues in the Netherlands is the Advertising Code Committee (ACC), which regularly handles complaints on greenwashing and other potential misleading statements.

The Ministry of Health will be extending the Nutri-Grade labeling requirements and advertising restrictions to products high in sodium and saturated fats, such as prepacked salt, sauces and seasonings; instant noodles; and cooking oil. These measures aim to help consumers make healthier choices and encourage industry reformulation.

It comes as no surprise that class actions targeting greenwashing claims — or green advertising — continue to rise in number and complexity.
Although consumer demand and regulatory actions have increasingly motivated businesses to make public statements about their sustainability practices and commitments to climate change, now is the time to take a step back and reevaluate those sustainability claims and marketing. Vague, unverified and unsubstantiated claims can all too easily lead to allegations of greenwashing.