GREENWASHING GUIDELINES

About

The guidelines were issued by the Central Consumer Protection Authority (CCPA) which works under the Consumer Affairs Ministry. 

The new norms would complement the existing Guidelines for Prevention of Misleading Advertisements and Endorsement for Misleading Advertisements, 2022, which dealt with false or exaggerated claims in advertisements in general.

Scope

The guidelines are limited to curbing greenwashing in advertisements of products or services. 

Definition of greenwashing

The guidelines define greenwashing as “any deceptive or misleading practice” that conceals, omits or hides relevant information, or exaggerates, or makes vague or unsubstantiated environmental claims about the product or service. 

What constitutes greenwashing?

According to the guidelines, the use of misleading words, symbols or imagery, highlighting only positive environmental attributes while downplaying or hiding negative aspects would constitute greenwashing.

Advertising guidelines for preventing greenwashing

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 generic terms such as “clean”, “green”, “eco-friendly”, “good for the planet”, “cruelty-free”, “carbon neutral”, “natural”, “organic”, “sustainable”, or similar other descriptions for a product should be substantiated with evidence. Otherwise, they will be prohibited.

Third-Party Certifications: Third-Party Certifications are required in substantiation of environmental claims.

• It is required for specific environmental claims such as compostable, degradable, free-of, sustainability claims, non-toxic, 100 percent natural, recyclable, refillable, renewable, plastics-free, plastic-positive, climate-positive, net-zero, etc.

Technical terms: Companies are mandated to explain the meanings of  more technical terms such as “environment impact assessment”, “greenhouse gas emissions”, or “ecological footprint”, which are used to advertise a product or service.

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.

Applicability

The guidelines will apply to all environmental claims made by manufacturers, traders, or service providers who have advertised their goods, products and services, or to an advertising agency or endorser whose service is available for the advertisement of such goods, products or services.

Penalties for violation

A penalty/fine of up to 10 lakh rupees on manufacturers, endorsers or advertisers for any misleading advertisements may be imposed by CCPA.

A fine may increase up to 50 lakh rupees in case of repetitive violation of the guidelines.

PRACTICE QUESTION

Q.Consider the following statements about Greenwashing: 

1. It is the tendency of various organisations to make false or unverifiable claims of environment-friendliness or climate-friendliness of their activities, products or services. 
2. Greenwashing is practised by corporates only.
3. There is no regulations in India to regulate greenwashing.

Which of the above  statements are incorrect? 

A)1 and 2 only

B)2 and 3 only

C)1, 2 and 3 only

D)None

Ans: B

Explanation: 

Statement 1 is correct: 

Greenwashing is the tendency of companies, organisations or nations to make false or unverifiable claims of environment-friendliness or climate-friendliness of their activities, products or services. 

Many of the organisations also have legal commitments, or targets, to adhere to environmental norms.

Statement 2 is incorrect: 

Countries have also been accused of greenwashing in cases like when they exaggerate the potential of their forests to absorb carbon dioxide, and the impact of a new regulation on carbon emissions.

As a result, companies and governments in many cases make claims that are exaggerated, misleading, or, in some cases, wrong.

Statement 3 is incorrect: 

The Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims: The guidelines were issued by the Central Consumer Protection Authority (CCPA) which works under the Consumer Affairs Ministry. 

The new norms would complement the existing Guidelines for Prevention of Misleading Advertisements and Endorsement for Misleading Advertisements, 2022, which dealt with false or exaggerated claims in advertisements in general.

The guidelines are limited to curbing greenwashing in advertisements of products or services.