California AG Investigates Shein and Temu for Greenwashing Claims

California Attorney General Rob Bonta announced investigations into major fast-fashion e-commerce platforms for potentially misleading environmental and sustainability claims — commonly known as "greenwashing."

What Was Alleged

The investigations focus on marketing claims like "eco-friendly," "sustainable," and "green" product lines that may lack substantiation. Under California's Environmental Advertising Law (Bus. & Prof. Code § 17580) and the broader Unfair Competition Law (§ 17200), environmental marketing claims must be truthful, substantiated, and not misleading to a reasonable consumer.

Key Takeaways for E-Commerce Businesses

• **Substantiate environmental claims.** "Eco-friendly," "sustainable," and "green" are legal claims that require evidence. Vague claims without specific, verifiable backing are high-risk.
• **Be specific.** Instead of "eco-friendly packaging," say "packaging made from 80% post-consumer recycled materials."
• **Don't offset your way out.** Carbon offset programs do not substantiate product-level environmental claims unless the product itself has a reduced environmental footprint.
• **Watch for FTC Green Guides updates.** The FTC is revising its Green Guides, and state AGs are increasingly enforcing ahead of federal action.

Why This Matters Beyond California

California's enforcement sets precedent. When the California AG acts, other state AGs often follow with their own investigations. If your business makes environmental claims, assume they will be scrutinized nationally.

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**Disclaimer:** This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your business.