Greenwashing's latest victim: one massive“bamboo-zle.”

The last few weeks have brought an unusually large number of environmental announcements that appear set to change the way we do business in Canada, particularly Quebec. The text below is the second of three mini-analysis' of these changes, and what they may mean for you.

The U.S. Federal Trade Commission (FTC) and the Canadian Competition Bureau (CCB) recently accused companies of “bamboo-zling” consumers. Both are now accusing retailers of deliberately misleading consumers by labeling products as “made of bamboo fiber,” and forcing them to instead adopt the term “bamboo rayon.”

Yes, the raw material used to make bamboo fabric is indeed the fast-growing plant that requires little or no pesticides or fertilizers and is reputed to have natural anti-microbial properties. But the process to turn bamboo stalks into into those super-soft shirts, towels, underwear is so chemical intensive that the finished product does not retain any of bamboo 's natural properties. The products are therefore more accurately described as rayon or viscose, synthetic fibers similar to nylon. For a visual description of the chemical transformation, click here.

As bamboo garments increasingly finding their way onto clearance racks, business in general must adapt now that federal bodies are finally targeting greenwashers, and, in the case of the FTC, threatening to sue non-compliant companies for misleading consumers. Beyond the direct consequences of litigation, the erosion of consumer confidence could be potentially disastrous for companies caught greenwashing - whether intentional or due to a lack of product knowledge. Like unsubstantiated health claims before it, greenwashing has become a financial and reputational risk,

Two years ago the New York Times reported that Lululemon Athletica's popular line of seaweed-based clothing had no demonstrable health benefits, contrary to its product claims. The company had to remove all references to the product's therapeutic benefits from its websites and stores as its stock price plunged.

The CCB and FTC have long investigated health-related claims, but until recently, companies were free to advertise environmental benefits with only consumer skepticism and websites such as the Greenwashing Index to refute them. And while it has long been considered good practice for companies to thoroughly research and prove their advertised-environmental benefits, government watchdogs' sudden interest in greenwashing has dramatically increased the risks of making unsubstantiated product claims.

Could it be that we are entering a time when the responsibility for proving or disproving green claims will fall squarely on the shoulders of companies, rather than consumers?