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Posted: Thursday, August 11, 2011 9:00 AM



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Mateusz Perkowski/Capital Press

Logger Scott Burke prepares to cut down a tree in Forest Grove's municipal watershed.
The 4,400 acre property is managed according to principles of the Forest Stewardship Council, a nonprofit group that certifies harvest practices as sustainable. Critics of the program claim that its stricter in the U.S. and more lenient in foreign countries, discriminating against domestic timber producers. Another nonprofit, the Sustainable Forestry Initiative, has faced accusations of acting as an timber industry trade group.



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Agencies examine disputes

It has been nearly two years since critics of two competing forestry certification groups lodged complaints against the nonprofits with federal agencies.

Nothing has come of the complaints against the Forest Stewardship Council and Sustainable Forestry Initiative yet, and it's possible nothing will, according to legal experts.

Though it usually takes a long time for the Federal Trade Commission to begin proceedings against a nonprofit or company, it's possible the agency will never take action, said Prentiss Cox, a law professor specializing in consumer protection at the University of Minnesota.

As a rule of thumb, the agency pursues cases when a reasonable person could have been misled by a representation, he said. However, he said, the definition of "reasonable person" is vague and provides some "wiggle room."

Ultimately, the FTC makes a fact-based decision, Cox said. In this case, it would rest on how the certifications square with what is actually done in the woods.

The dispute centers on a politically charged disagreement about which practices are considered sustainable, he said. Usually, the FTC prefers to take on blatant violations.

"It's hard to imagine FTC will want to charge into this kind of dispute," Cox said.

The Internal Revenue Service examines whether a nonprofit provides a public benefit, said Susan Gary, a law professor specializing in nonprofit regulation at the University of Oregon.

It's fine for a nonprofit also to benefit private interests, but only if it's tangential to the public interest, she said. If the main goal is helping board members of the group, for example, the nonprofit status may be revoked.

In this case, the controversy seems to stem from opposing political views, Gary said. "What the IRS is supposed to do is not take a political position on anything."

-- Mateusz Perkowski

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