In recent years, the growing awareness of environmental issues has led to a surge in demand for eco-friendly products and services. However, this increased demand has also given rise to a phenomenon known as “greenwashing,” where companies make misleading or exaggerated environmental claims to appeal to environmentally conscious consumers. To combat this, issue the Central Consumer Protection Authority (CCPA) in India has issued the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024.

What is Greenwashing?

Greenwashing refers to the practice of misleading consumers about a product or company’s environmental impact. This can be done through exaggerated claims, vague statements, or outright falsehoods.

• Exaggerated Claims: Making overly broad or unsubstantiated claims about a product’s environmental benefits. For example, claiming a product is “100% recyclable” when only certain parts are.
• Vague and Ambiguous Terms: Using vague and ambiguous terms like “eco-friendly,” “natural,” or “green” without any specific supporting evidence.
• Hidden Trade-offs: Highlighting one environmental benefit while ignoring or downplaying other significant environmental impacts.
• False Certifications or Labels: Misrepresenting or falsely claiming to have certifications or eco-labels that the product does not actually possess.
• Irrelevant Claims: Making claims about environmental attributes that are irrelevant to the product’s actual use or impact.

Applicability:

Clause 3: These guidelines shall apply to –

a. all Environmental Claims;

b. a manufacturer, service provider or trader whose goods, product or service is the subject of an advertisement, or to an advertising agency or endorser whose service is availed for the advertisement of such goods, product or service.

Key Provisions

The guidelines aim to curb greenwashing practices and promote transparency in environmental claims. Some of the key provisions include:

• Truthfulness and Accuracy: Environmental claims must be truthful and accurate, backed by verifiable evidence.
• Adequate Disclosures: All material information related to environmental claims must be disclosed, either directly in the advertisement or through accessible links.
• Avoidance of Vague Terms: Vague terms like “eco-friendly,” “natural,” or “sustainable” must be used with caution and supported by specific information.
• Substantiation of Claims: Environmental claims must be substantiated with credible scientific evidence or certifications from recognized authorities.
• Comparative Claims: Comparative claims must be based on verifiable data and clearly specify the basis of comparison.
• Life Cycle Assessment: For comprehensive environmental claims, a life cycle assessment (LCA) may be required to evaluate the product’s environmental impact across its entire life cycle.

Enforcement and Penalties

The CCPA has the authority to investigate and take action against any entity that violates these Guidelines. Penalties for violations may include:

• Directives: The CCPA may issue directives to rectify misleading claims or cease and desist orders to stop the use of such claims.
• Penalties: Violations may be subject to penalties, which can be substantial depending on the severity of the offense.
• Consumer Redressal: The CCPA may also order compensation for consumers who have been misled by false or deceptive environmental claims.

Conclusion

These guidelines are a significant step towards promoting environmental sustainability and protecting consumers from misleading claims. By understanding and adhering to these guidelines, businesses can build trust with consumers and contribute to a more sustainable future.

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