Context:
Recently, the Central Consumer Protection Authority (CCPA) issued guidelines to regulate misleading environmental claims and combat greenwashing.
More in the News:
- The guidelines titled “Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024” are part of a broader effort to ensure transparency and integrity in corporate sustainability practices.
- These guidelines are designed to protect consumers from deceptive marketing practices while promoting genuine environmental responsibility among businesses. They emphasise the need for credible evidence to support environmental claims.
What is Greenwashing (or green sheen)?
- Greenwashing, as per the CCPA guideline, refers to deceptive practices where companies exaggerate or falsely claim the environmental benefits of their products. This includes vague terms like “eco-friendly” or “natural” without proper substantiation.
- Such tactics mislead consumers and divert attention from actual sustainable practices, undermining genuine efforts to address environmental issues.
Key Features of the Guidelines:
- Clear Definitions: The guidelines provide precise definitions for terms related to greenwashing and environmental claims, ensuring a common understanding among businesses and consumers.
- Transparency Requirements: Companies must substantiate their claims with credible evidence, detailing the methodology behind their assertions.
- Prohibition of Misleading Terms: Vague terms like “sustainable” or “green” cannot be used without adequate qualifiers and substantiation.
- Third-Party Certifications: The guidelines recognise third-party certifications as valid support for environmental claims, enhancing credibility.
- Adequate Disclosures: Companies are required to make clear disclosures regarding the specifics of their claims (good, manufacturing process, packaging, etc.), ensuring consumers have access to reliable information
- For Example, a marketer advertises its hand wash as ‘biodegradable’ without qualification. The advertisement should make it clear that only the hand wash, not the bottle, is biodegradable.”
