Relational Integrity Regulation: Nudging Consumers Toward Products Bearing Valid Environmental Marketing Claims

Abstract:     
Over the last two decades scholars have addressed attributes of effective environmental regulation and advocated a wide spectrum of regulatory approaches, from the traditional command-and-control model to a libertarian-paternalism approach. Some writers have used those approaches to advocate for modifications to the current federal regulation of environmental marketing claims. This Article joins that conversation and accomplishes two goals. First, it harmonizes existing environmental regulation scholarship, resulting in the creation of a new form of regulation that it terms “Relational Integrity” regulation. Second, in light of the Relational Integrity approach to regulation, the Article examines several public and private environmental claim regulatory schemes and suggests how those schemes could be more effective. The regulatory schemes include public schemes in the United States and the European Union and a private scheme issued by the non-governmental International Organization for Standardization (IS0). Among its observations, the Article notes that although the ISO standards are a product of an international non-governmental entity, the standards fare as well as if not better than existing and proposed governmental regulation in reaching the Relational Integrity standard.

Keywords: environmental regulation, command-and-control model, libertarian-paternalism approach, environmental marketing claims, relational integrity, environmental regulatory schemes, International Organization for Standardization Standards, ISO Standards

JEL Classification: K10, K19, K23, K32

Accepted Paper Series