CCPA notifies companies against misleading environmental claims & greenwashing

New Delhi, Oct 15 (IANS) In a bid to curb advertisements that falsely claim products to be natural, eco-friendly, or green, the Central Consumer Protection Authority (CCPA) has issued guidelines that will prevent and regulate greenwashing and misleading environmental claims, said Nidhi Khare, Secretary Department of Consumer Affairs, here on Tuesday.

The guidelines come amid the rapid increase in environmentally friendly advertisements of products.

“Greenwashing” can be explained as a term, akin to ‘whitewashing’, refers to the marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services.

The guidelines, issued by a committee chaired by Khare, who is also the Chief Commissioner of CCPA, seek to foster truthful practices where environmental claims are both truthful and meaningful. It also aims to boost consumer trust and encourage sustainable business practices.

The guidelines include public suggestions like disclosure of credible certification, and reliable scientific evidence; and on claims such as natural, organic, and pure.

“By creating an illusion of environmental responsibility, many unscrupulous companies end up exploiting consumers' growing environmental sensitivity. This deceptive practice not only misleads well-intentioned consumers but also diverts attention from broader environmental efforts,” Khare said.

“These guidelines are progressive regulations intended to harmonise the proactive efforts of manufacturers and service providers to address environmental issues and rising consumer interest in environmentally positive goods and services,” she added.

The new guidelines encourage companies to highlight their environmental initiatives, and back their claims with proper disclosures and credible evidence.

This will primarily “shield consumers from misleading information while promoting genuine environmental responsibility within the business community,” Khare said.

These guidelines mark a significant step towards enhancing consumer awareness and promoting responsible advertising.

“By laying down obligations and disclosures to be complied with by stakeholders, CCPA has taken steps to ensure accuracy, transparency, and accountability in environmental claims,” said Karun Mehta, Partner, Khaitan & Co.

“The guidelines are expected to foster a culture of ethical marketing practices within the industry, compelling businesses to substantiate their claims authentically,” Mehta said, adding that it “would also enhance consumer trust and confidence in environment-friendly products”.

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