Time and again, marketing witnesses unfair practices, and one such practice relates to an exaggerated or false claim of environment friendly products being marketed by them. Consumers too prefer eco-friendly choices and therefore brands use greenwashing to project a false image of sustainability. This term has been coined by American environmentalist. Jay Westerveld on the lines of ‘whitewashing’ indicating the hiding of flaws or issues deliberately.
Greenwashing refers to exaggerated or vague/unverified environmental claims or omits relevant information.
Companies now will have to provide verifiable evidence for eco-friendly assertions such as organic, pure or recyclable in their product ads as per the new guidelines. The facts could also be disclosed through a QR code, URL or another digital medium.
The words used must be backed by credible certification, scientific evidence or third-party verification.
The violations of greenwashing guidelines are governed by the CPA, 2019. The Central Consumer Protection Authority (CCPA) has the power to penalize the violations. It consists of fines as well as imprisonment. In addition, the company’s corporate reputation is damaged.
In the European Union, Directive 2024/825 governs the greenwashing. In the UK, there is Green Claims Code. In the USA, the FTC is revising its Green Guides. S. Korea is on the verge of passing anti-greenwashing law. China targets misleading ads. Australia too cracks on false green claims.
The consumer attitudes are being shifted towards sustainability. Most of the consumers want sustainable products. They are willing to pay more for this.
The ASCI finds that Indian advertising mostly violates greenwashing guidelines. There is a necessity for stricter regulations.
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