Greenwashing Guidelines

Table of Contents

What is Greenwashing ?

Greenwashing refers to the practice of making false or exaggerated claims about the environmental benefits of a product, service or activity.
It arises due to pressure on companies and governments to align their activities with environmental sustainability commitments or net-zero targets.
g. Companies overstating the impact of their eco-friendly practices or making false claims about emission reductions.

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 in substantiation of 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.

Central Consumer Protection Authority (CCPA)

It is a regulatory body in India that protects and enforces consumer rights.
It was established under the Consumer Protection Act, 2019.
Nodal Ministry: Ministry of Consumer Affairs, Food and Public Distribution:
CCPA works with consumer organisations, industry stakeholders, and regulatory bodies to ensure that guidelines are implemented and complied with
CCPA’s powers are similar to those of the Federal Trade Commission (FTC) in the United States.
CCPA’s responsibilities include:
- Regulating unfair trade practices, misleading advertisements, and violations of consumer rights
- Promoting and protecting consumer rights
- Enforcing consumer rights
- Issuing safety notices
- Imposing penalties for misleading advertisements