Sustainability, Compliance, and Claims: Insights from Sheila Millar

In the latest episode of Beyond the Shelf, hosted by Laura Foti, we had the pleasure of hearing from Sheila Millar, lead of Keller and Heckman’s consumer protection regulatory practices. Sheila brings a wealth of experience to a range of public policy and regulatory matters. Her work spans advertising and promotions, sustainability claims, connected products, and product safety. She also represents clients in enforcement investigations by the Federal Trade Commission (FTC), Consumer Product Safety Commission (CPSC), and state attorneys general around compliance audits and regulatory procedures and provides crisis management support.

Below are some highlights from the conversation – you can listen to the full audio on Apple Podcasts, Spotify and Soundcloud. Be sure to subscribe to our channel to get the latest episodes as soon as they drop.

Navigating the Complex Regulatory Landscape

Sheila's clientele is diverse, representing parties all across the supply chain, ranging from raw material suppliers to packaging producers, brands, and retailers. This extensive reach provides her with a unique vantage point to understand the myriad of challenges faced by different stakeholders in the industry. Some of the most concerning topics that Millar has seen throughout her work have been around:

1. ESG Reporting: The inconsistencies in regulatory landscapes pose significant challenges for companies to comply with Environmental, Social, and Governance (ESG) reporting.
2. Extended Producer Responsibility (EPR): Laws specific to compostability or recyclability requirements vary country by country and state by state, adding layers of complexity when trying to stay compliant.
3. Material Bans: Various bans on materials or chemicals necessitate constant vigilance and adaptation.

The Importance of Substantiation

One of the core tenets Millar emphasizes is the need for substantiation in advertising claims when trying to ensure their sustainability claims are well founded. The burden of proof lies on the advertiser, requiring competent and reliable scientific evidence to back up any claims made about a product's environmental benefits.

This rigorous requirement means that companies must conduct thorough testing and analysis to ensure their claims are valid. For instance, if a company advertises that its plastic resin is compostable based on tests conducted at specific conditions, it must ensure that all products using that resin can perform in the way the tests and claims outline.

Data-Driven Compliance

Data plays an essential role in substantiating claims. Companies need robust data governance procedures to track their supply chains' compliance with advertised claims continuously. This becomes even more critical when dealing with multiple suppliers or navigating disruptions in supply chains.

Sheila advises her clients to leverage existing relationships with trade associations for information tracking regulations and legislation advocacy efforts. Specialized tracking can help large global businesses analyze how new regulations impact their products and marketing strategies. By leveraging ecosystems of network, companies can stay informed.

The Future of Packaging Regulations

The future of packaging regulations appears complex yet hopefully will make some positive environmental changes. However, these regulatory goals won’t make a difference if every angle is not considered. Millar touched on a few challenges that we are still facing as EPR laws are being rolled out.

1. Consumer Education: Effective EPR programs require robust consumer education initiatives. EPR laws are only successful if people follow the correct disposal measures, and education is key in this.
2. Trade-Offs: Balancing environmental goals with practical realities such as food safety or shelf life still remains challenging.
3. Holistic Approach: A more universal approach that considers various factors must be taken. We want to avoid the possibilities of solving one problem but then creating more problems as a result, or even preventing problems from being solved. For example, considering things like microbiological contamination risks could lead to bigger outcomes than solely looking at packaging materials.

Conclusion

Sheila Millar's expertise underscores how crucial it is for businesses today not only comply, but thrive amidst regulatory environments. With strategic planning and solid data governance practices coupled with effective collaboration across stakeholders, businesses can tackle the ever changing regulatory landscape around the respective industries they operate within.

Listen to the full podcast episode here for more valuable insights, and connect with Sheila Millar on LinkedIn here.

To listen to more episodes of Beyond the Shelf, click here.