In a bid to protect consumers and promote transparency in eco-friendly marketing. the government of India has unveiled guidelines to regulate greenwashing and misleading environmental claims by a wide range of companies.
Nidhi Khare, secretary, department of consumer affairs, government of India, who is also the chief commissioner of the Central Consumer Protection Authority (CCPA) announced on 15 October that the guidelines seek to foster truthful practices where environmental claims are both truthful and meaningful, thus enhancing consumer trust and encouraging sustainable business practices.
The new guidelines mandate companies making environmental claims to disclose all material information in advertisements or communications, either through QR codes, URLs, or other digital media.
According to the guidelines, specific environmental claims such as ‘compostable, degradable, free-of, sustainability claims, non-toxic, 100% natural, recyclable, refillable, renewable, plastic-free, plastic- positive, climate-positive, net-zero,’ and similar claims must be supported by disclosure about credible certification, reliable scientific evidence, internal verifiable evidence, certificates from statutory or independent third-party verification. These disclosures should be easily accessible to consumers.
Generic terms such as ‘clean, green, eco-friendly, eco-consciousness, good for the planet, minimal impact, cruelty-free, carbon neutral, natural, organic, pure, sustainable, regenerative’ or other similar claims shall not be used without adequate, accurate and accessible qualifiers and substantiation and adequate disclosure as provided under clause (6) of the guideline.
While using technical terms such as environmental impact assessment (EIA), greenhouse gas emissions and ecological footprint, consumer-friendly language should be used, explaining the meaning or implications of technical terms.
The need for guidelines
The department of consumer affairs placed the draft guidelines for public comments on 20 February 2024, based on the recommendations of a committee on greenwashing chaired by Khare. Public suggestions were received from 27 stakeholders.
Besides Khare, members from the academia such as professor Sushila of NLU, Delhi and Prof Ashok R Patil, vice chancellor, NLU Ranchi; practitioners Nishith Desai Associates; activists and organizations such as Shirish Deshpande, the Mumbai Grahak Panchayat and S Saroja of Consumer Voice and representatives from ASCI, FICCI, Assocham, and CII formed the wide spectrum of stakeholders.
The CCPA after considering the suggestions unveiled the guidelines titled ‘Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024’, ensuring transparency and accuracy in advertisements related to environmental sustainability.
The guidelines have been drafted in the wake of the rapid increase in advertisements of green (environment-friendly) products and the growing number of environmentally aware consumers. ‘Greenwashing’ is a term that plays on the word ‘whitewashing’ and refers to the marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services, often using vague or unsubstantiated terms such as ‘natural,’ ‘eco-friendly,’ or ‘green.’
The guidelines have been drafted in the wake of the rapid increase in advertisements of green (environment-friendly) products and the growing number of environmentally aware consumersAccording to the government, by creating an illusion of environmental responsibility, unscrupulous companies end up exploiting consumers’ growing environmental sensitivity. This practice not only misleads consumers but diverts attention from broader environmental efforts. “These guidelines are progressive regulations intended to harmonize the proactive efforts of manufacturers and service providers to address environmental issues and rising consumer interest in environmentally positive goods and services,” the government said.
These guidelines, the government says, are designed not to stifle companies’ environmental efforts of manufacturers and service providers but to ensure such claims are transparent and made with integrity. Companies are encouraged to highlight their environmental initiatives, provided these claims are backed with proper disclosures and credible evidence.
The primary goal of these guidelines is to shield consumers from misleading information while promoting genuine environmental responsibility within the business community. By mandating that companies substantiate their environmental assertions, the guidelines seek to foster a marketplace where environmental claims are both truthful and meaningful, thus enhancing consumer trust and encouraging sustainable business practices.
Key highlights
Clear Definitions: The guidelines provide clear definitions of terms related to greenwashing and environmental claims, ensuring that both businesses and consumers have a common understanding.
Transparency Requirements: Manufacturers and service providers are required to substantiate their environmental claims with credible evidence. This includes providing detailed information on the methodology and data used to support such claims.
Prohibition of Misleading Terms: The use of vague or misleading terms such as ‘eco-friendly,’ ‘green,’ and ‘sustainable’ without proper substantiation is sought to be prohibited.
Third-Party Certifications: Third-party certifications are also accepted to substantiate environmental claims.
Adequate Disclosures: The companies are required to provide clear and accessible disclosures of material information. Claims must specify the aspect referred to (good, manufacturing process, packaging, etc.) and be supported by credible certification or reliable scientific evidence.
The CCPA says it seeks to work closely with industry stakeholders, consumer organizations, and regulatory bodies to ensure effective implementation and compliance with the guidelines in the interest of consumers and the public.
