Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 19, 2019
The Firm
201-896-4100 info@sh-law.comOrganic and eco-friendly products are increasingly popular with consumers. However, businesses that rely on environmental marketing to sell their products and services must have the science to back up their claims. If not, you could face costly allegations of deceptive advertising from regulators and consumers.

The Federal Trade Commission (FTC) recently announced that Truly Organic Inc. (Truly Organic) and its founder and CEO, Maxx Harley Appelman, will pay $1.76 million to settle a complaint alleging that their nationally marketed bath and beauty products are neither “100% organic” nor “certified organic” by the U.S. Department of Agriculture (USDA). The FTC’s complaint alleged violations of Section 5 of the Federal Trade Commission Act (FTC Act), which prohibits unfair or deceptive acts or practices in or affecting commerce.
According to the FTC complaint, Truly Organic used non-organic ingredients in its products, such as non-organic lemon juice, which can be sourced an organic version. Other products contained ingredients that the USDA doesn’t allow in organic handling, including cocamidopropyl betaine and sodium cocosurfactant. Other Truly Organic products were made by third-parties, including bath bombs and soaps, and fail to contain any organic ingredients. The FTC also alleged that certain products contain non-vegan ingredients such as honey and lactose.
On May 4, 2016, the USDA contacted Truly Organic to notify them that NOP had received complaints alleging that Truly Organic “markets its product as organic in violation of the USDA organic regulations.” After receiving a Notice of Warning from the USDA, company president Maxx Appelman told USDA that “previous management” had erroneously used the USDA Organic seal, and that “we have removed the seal from all packaging, marketing/promotional materials, website, everything as you can see and are selling a completely redesigned group of products. We are well aware of the rules and regulations that govern the USDA Seal and have not used the seal whatsoever and do not plan to unless we gain proper certification.”
Truly Organic offers a good lesson on what not to do if contacted by a regulator regarding allegations of false advertising. Despite its statements to the USDA, Truly Organic continued to make the false “certified organic,” “USDA organic,” and “vegan” claims. According to the FTC, Appelman subsequently stated in an email to Urban Outfitters, Inc. that all of its products were certified organic and vegan. He maintained they were “certified organic (and actually the most organic in the world)” and “everything is vegan, made in the USA, cruelty-free, fair trade, non-gmo and gluten-free,” according to the FTC. The agency also alleged that the company falsified USDA certification by taking a document issued to another company, erasing that name, and adding its own. Truly Organic then provided falsified certification to third parties as purported proof for its “certified organic” claims.
Truly Organic and Appelman have agreed to pay a monetary fine of $1.76 million to resolve the FTC complaint. The settlement also prohibits Truly Organic and Appelman from making deceptive claims, including false and/or unsubstantiated claims, that any good or service: 1) is wholly or partially organic; 2) contains or uses organic ingredients; 3) is certified organic; 4) is vegan; or 5) has been evaluated by any third party, including one affiliated with the USDA NOP, based on its environmental or health benefits or attributes.
“To know if a product is truly organic, consumers have to rely on companies to be truthful and accurate,” Andrew Smith, director of the FTC’s Bureau of Consumer Protection, said in a press statement. “That’s why we’ll hold companies accountable when they lie about their products being organic, especially when they’ve used fake certificates and ignored USDA warnings.”
FTC Commissioner Rohit Chopra also issued a statement, praising the imposition of monetary fines in such cases. “I believe it would be helpful for the Commission to codify this approach in a Policy Statement addressing unlawful conduct that is dishonest or fraudulent,” he wrote. “In cases involving such conduct, no-money settlements are inadequate, and the Commission should commit itself to exercising its full authority to protect consumers and honest businesses.”
As organic, vegan, and eco-friendly products continue to flood the market, regulators are taking a closer look at any associated advertising claims in an effort to prevent so-called “greenwashing.” The FTC’s latest action serves as an important reminder that all environmental marketing claims must not be misleading, must be true at the time they are made, and must be supported by competent and reliable scientific evidence. The FTC’s Guides for the Use of Environmental Marketing Claims, (“Green Guides”), are an excellent resource for New York and New Jersey businesses seeking to ensure that their environmental marketing claims do not violate federal truth-in-advertising standards.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe

Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe

The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman

Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan

Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman

The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!