Judge Dismisses Class Action Accusing Nike of Greenwashing

Meghan Hall
·3 min read

A federal court gave the green light to dismiss a class-action lawsuit against Nike last week.

The athletic wear giant faced accusations over greenwashing in Missouri’s Eastern District Court, filed by lead plaintiff Maria Guadalupe Ellis in May 2023. The complaint alleged that the Beaverton, Ore.-based company had violated the Missouri Merchandising Practices Act (MMPA) by deceiving consumers, misrepresenting products and more.

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The MMPA was designed to protect consumers from misleading and unfair business practices.

Ellis, who noted she purchased three items from Nike’s sustainability line, alleged that the company “falsely and misleadingly markets the products as ‘sustainable,’ made with ‘sustainable materials,’ and environmentally friendly.”

The complaint, which accuses the company of greenwashing, notes that Nike labels some of its products with phrases like “‘made with recycled fibers’ which ‘reduces our waste and carbon footprint,’” and others bear a circular symbol that “means that the products are made with ‘sustainable’ and environmentally friendly materials.”

However, Ellis alleged that Nike’s sustainability emblazoned products, in actuality, had no environmental benefits.

“They are not made with ‘sustainable’ and environmentally friendly materials because the products are not sustainable, and are not made from sustainable and environmentally friendly materials that are less harmful to the environment,” the complaint read. “The marketing and labeling deceives consumers into believing that they are receiving products that are ‘sustainable’…but Nike’s products do not live up to these claims.”

Ellis contended that she—and other class participants—“would not have purchased the products if she had known that they were not sustainable.”

One of the main cruxes of Ellis’ argument proved to be around Nike’s use of recycled materials.

She alleged that “Of the 2,452 Nike ‘Sustainability’ Collection products identified [in the lawsuit], only 239 products are actually made with recycled materials. Thus, more than 90 percent of the Nike ‘Sustainability’ Collection products are not ‘made with recycled fibers.’”

The complaint also took aim at Nike for using recycled polyester and nylon, both of which are plastic-based synthetics. The plaintiff alleged that neither of those materials are sustainable and cause palpable harm to the environment because of the shedding of microplastics and the limited lives of recycled fibers.

Ultimately, though, Ellis’ arguments failed to persuade Judge Matthew Schelp that the case should see trial.

In the memorandum and order to dismiss the case, Schlep wrote the following in reference to Ellis’ claims around recycled fibers: “How does she know this to be true? She does not say…She makes no mention of any testing or analysis. She says nothing about how their look or feel might indicate their makeup. She puts forth no allegations surrounding the supplier of defendants’ materials. She claims nothing about the manufacturing process. She details no inside knowledge from, say, a whistleblower, for example, who has come forward on this alleged massive corporate lie.”

He went on to conclude that an exhibit the plaintiff submitted to the court detailing the material makeups of certain products “is silent on whether the products contain or do not contain recycled material or organic material. That is, it does not say that the polyester [or materials] in these products was or was not virgin or was or was not recycled.”

Schelp concludes that the allegations are conclusory and that Ellis also failed to adequately describe the nature of the advertisements, labels and marketing from Nike that allegedly convinced her to purchase the products.

Nike isn’t the only company that has recently skirted legal trouble over greenwashing claims.

Greenwashing cases against major brands have seemingly had a tough time making it to trial. In December, plaintiffs voluntarily dropped a class-action greenwashing suit against H&M. In May of last year, the Swedish company also won dismissal of a separate greenwashing case against it.

Nike did not return Sourcing Journal’s request for comment.