Manufacturer files lawsuit against competitor over banned marketing tactic: 'Misleading and unfounded product ... claims'

Peikko Group Corporation, a Finland-based global supplier of concrete connections and composite beams used in construction, filed legal action against competitor Anstar Oy for alleged greenwashing. 

What happened?

According to a Peikko news release, the company filed a complaint with the Market Court of Finland in late March, claiming that Anstar used misleading tactics to market its products. 

Specifically, Peikko discovered that Anstar — also a manufacturer of concrete structure connections and composite beams — advertised its steel beams as low-carbon. However, Peikko said that no supporting documents were available to back up the claims. 

This isn't the first time Anstar has faced legal action regarding deceptive information about its products.

In May 2024, the Market Court determined that the Environmental Product Declaration for its A-BEAM S steel beam product contained inaccurate claims about the origin of steel raw materials and the proportion and quantity of steel grades.

Now, Anstar says this same product is low-carbon, along with A-BEAM W, another composite beam it offers. 

Peikko sent a letter to Anstar's managing director and board of directors, requesting that they stop advertising their steel products as environmentally friendly. As of March 24, Peikko said it had not received a response from Anstar or seen evidence that the company was removing the false claims from its website and other marketing outlets. 

"Now, when this product is being marketed as low-carbon and, at the same time, Environmental Product Declarations are not available, on what basis can customers and other stakeholders verify the reliability of the environmental claims this time?" Topi Paananen, CEO of Peikko Group Corporation, said in the news release. 

"Misleading and unfounded product marketing claims make it difficult for customers to compare products, jeopardize trust in industry operators, and reduce their credibility," he added.

Why is greenwashing concerning?

As Paananen said, greenwashing hurts consumers, businesses, and investors because it undermines trust and makes it difficult to gauge the quality of a company's products. When consumers genuinely want to help the environment and believe a product they're buying is sustainable, learning that the claims are unfounded can make them disillusioned with companies and the entire eco-friendly movement. 

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Greenwashing also hinders progress toward a cleaner, safer future if companies think they can continue to advertise their products as sustainable while engaging in harmful practices. Plus, it exposes companies to legal risks and can encourage increased consumption if consumers are led to believe a product has a smaller environmental footprint than it actually does. 

Other major companies have also been in the spotlight recently for greenwashing.

Inditex, the parent company of fast-fashion brand Zara, said it is committed to reducing carbon pollution, yet it reported an increase in emissions from 2023 to 2024.

Additionally, Chevron and other oil and gas giants were sued by Multnomah County, Oregon, which sought to hold them accountable for their contributions to the deadly heat dome that impacted the state in 2021. 

What's being done to stop greenwashing?

Luckily, more consumers and eco-friendly companies are calling out businesses for deceitful marketing tactics. A recent survey conducted in the European Union found that nearly 50% of participants supported banning ads for fossil fuels such as coal, oil, and gas, even if the ads made eco-friendly claims. 

Governments are also working to rein in greenwashing. In 2023, the EU introduced new rules outlining actions it will take to prevent greenwashing, which included rigorously vetting products claimed to be sustainable. 

There are several ways to avoid greenwashing in everyday life, including learning how to spot it in common items such as clothing, cleaning products, and cosmetics. 

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