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Businesses Should Weigh Pros and Cons of Green Labeling

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Businesses Should Weigh Pros and Cons of Green Labeling

Business owners planning on going green may want to reconsider their choices. According the website Small Business Trends, a variety of green labels may result in a hefty cost without yielding much of a profit, or even point, for the company displaying them.

The government has instituted green labels as a way to to encourage businesses to operate more energy-efficient institutions. However, a move such as this often results in thousands of dollars spent that doesn't always produce a worthy return on investment. For example, Green Seal, a label that was penalized because it was simply a marketing ploy, required an assessment of some businesses while others flew under the radar. Its "services" were additionally accompanied by a hefty pricetag.

Another company, Tested Green, was found to be selling gimmick labels as well and was banned by the Federal Trade Commission. It conned more than 100 businesses, charging between $190 and $550, into paying for a certificate that wasn't tested, certified or even green, Wallet Pop reported.

"It's really tough for most people to know whether green or environmental claims are credible," David Vladeck, director of the FTC's Bureau of Consumer Protection, said in a statement, Wallet Pop noted.