As climate change and resource depletion continue to escalate, the call for sustainability has become increasingly urgent. Indian consumers are responding to this call with a growing preference for eco-friendly products, as indicated by a study by the Center for Online Learning. The study revealed that 86% of the surveyed individuals had modified their shopping habits in response to a growing awareness on the need for sustainable consumption.
However, accompanying growth in the number of ‘green shoppers’ is the rise of ‘green marketing’, where companies make claims of sustainability to attract green shoppers. This has led to the challenge of ‘greenwashing’, where the authenticity of environmental claims is doubtful, exaggerated or misrepresented. This has obvious repercussions on consumer trust and could be seen as an infringement upon their fundamental rights.
Common Tactics of Greenwashing
Many companies utilise sophisticated marketing strategies to create a misleading perception of sustainability. The following are common tactics employed by businesses:
1. Vague or Unverified Claims: Terms such as "natural," "eco-friendly," or "biodegradable" are often utilised without adequate supporting evidence. A notable example includes Hindustan Unilever Limited, which faced legal action in 2011 for falsely advertising its Surf Excel Easy Wash detergent as "100% natural."
2. Misleading Visuals: Using green colours, tree icons, or animal imagery on packaging can create an illusion of sustainability.
3. Irrelevant Claims: Some companies promote features that are no longer pertinent, such as advertising products as "CFC-free" when CFCs have been banned for decades.
4. Hidden Trade-Offs: Products may highlight a specific eco-friendly attribute while neglecting to disclose their overall environmental impact.
5. Lack of Third-Party Certification: Without independent verification, claims of eco-friendliness can be unsubstantiated.
Addressing the Challenge of Greenwashing
In recognition of this challenge, India has introduced comprehensive Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 through the Central Consumer Protection Authority (CCPA) to safeguard consumers from misleading marketing practices and promote transparency in environmental claims.
Development of the Guidelines
Before 2024, there were no specific regulations to address greenwashing. Although the Guidelines for Prevention of Misleading Advertisements, issued in 2022, addressed general advertising misrepresentations, there remained a need for targeted measures regarding environmental claims. To fill this gap, the CCPA released draft guidelines on February 20, 2024, focused on preventing and regulating greenwashing. When the Guidelines were opened for public consultations, Citizen consumer and civic Action Group (CAG) wrote in with comments to further strengthen the proposed guidelines.
The Guidelines were finalised on October 15, 2024, as the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims. These serve as a pivotal regulatory framework designed to enhance the accuracy of businesses' environmental claims, thereby empowering consumers.
Key Provisions of the Guidelines
Purpose
These Guidelines aim to prevent greenwashing and misleading environmental claims, supplementing the Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
Scope
Applicable to all entities (manufacturers, service providers, advertisers, agencies, endorsers) making or promoting environmental claims.
1. Clear Definition of Greenwashing
The Guidelines define greenwashing as any deceptive or misleading practice, which includes concealing, omitting, and hiding relevant information by exaggerating or making vague, false, and unsubstantiated environmental claims.
2. Substantiation of Environmental Claims
Businesses are required to provide clear, verifiable evidence to support claims like ‘clean’, ‘green’, ‘eco-friendly’, ‘eco-consciousness’, ‘good for the planet’, ‘minimal impact’, ‘cruelty-free’, ‘carbon - neutral’, ‘natural’, ‘organic’, ‘pure’, sustainable. Vague terms cannot be used without substantiation. Companies must:.
Use simple language when referencing technical terms like "Environmental Impact Assessment (EIA)" or "ecological footprint" to make the information accessible to consumers.
3. Adequate disclosures:
All evidence for environmental claims must be disclosed to consumers. To pick and choose to disclose only favourable data will also constitute a violation.
4. Regulation of Visuals and Color Schemes
Any form of visual representation that attempts to manipulate a consumer into believing that a product is environmentally sustainable is restricted unless the product genuinely meets environmental standards.
5. Comparative Environmental Claims
Verifiable and relevant data must support comparative environmental claims. These claims should specify the exact aspects being compared between products or services. For example, a claim such as "Our product is greener than the competition!" would be misleading if it does not specify the environmental attributes being compared.
6. Certifications and Logos
Specific environmental claims such as "Compostable," "Degradable," "Free-of," "Sustainable," "Non-Toxic," "100% Natural," "Recyclable," "Refillable," "Renewable," "Plastic-Free," "Plastic-Positive," "Climate-Positive," "Net-Zero," and similar terms must be substantiated with credible certifications, reliable scientific evidence, verifiable internal data, or certificates from statutory or independent third-party verification. For example, labelling a product as "certified organic" with the Jaivik Bharat logo is permissible only when proper certification is obtained from recognised organic certifying bodies. Without such certification, this would amount to false advertising.
7. Enforcement and Penalties
Penalties for greenwashing are enforced under the Consumer Protection Act of 2019, with the Central Consumer Protection Authority (CCPA) authorised to act against companies making false claims. As per the Act, first-time offenders may face imprisonment of up to two years and fines up to ₹10 lakh. For repeat offenders, the penalties can escalate to imprisonment of up to five years and fines up to ₹50 lakh.
Benefits of the Greenwashing Guidelines for Consumers
The newly established Guidelines for Prevention and Regulation of Green or Misleading Environmental Claims, 2024 present significant advantages to protect consumers in an increasingly eco-conscious market. These guidelines aim to provide heightened transparency, allowing consumers to make more informed choices about the products they purchase. By clearly defining what constitutes genuine environmental claims versus misleading ones, these guidelines empower consumers against potential deception. However, consumers must stay alert and informed, as the actual effectiveness of these Guidelines relies on their active engagement and vigilance to ensure compliance from companies.
Conclusion
The new Guidelines mark a significant advancement in consumer protection and environmental accountability. They can ensure consumer protection by giving consumers the information needed to make purchasing decisions; they can address deceptive marketing practices; they now hold businesses to higher standards by promoting transparency and truthfulness in their environmental claims.
With consumer awareness of sustainability at an all-time high, the Guidelines create a level playing field where genuine eco-friendly products can thrive. By curbing greenwashing, India takes a crucial step toward a sustainable future, where businesses, consumers, and the environment, all stand to benefit.
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