The Central Consumer Protection Authority has issued “Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024”.
These Guidelines apply to:
(i) all environmental claims*;
(ii) a manufacturer, service provider* or trader whose goods, product or service is the subject of an advertisement*, or to an advertising agency* or endorser hose service is availed for the advertisement of such goods, product or service.
Key Highlights:
(i) Prohibits greenwashing* or misleading environmental claims.
(ii) Advertisements that make environmental claims have to ensure that the generic terms like “clean”, “green”, “eco-friendly”, etc., is not used without adequate, accurate and accessible qualifiers and substantiation and adequate disclosures.
(iii) Use consumer-friendly language and explain meaning or implications of technical terms like – Environmental Impact Assessment, Greenhouse Gas Emissions, Ecological Footprint.
(iv) Support accessible verifiable evidence based on independent studies or third-party certifications for all environmental claims in advertisements.
(v) Disclose all material information in relevant advertisement or communications by inserting a QR code or URL.
*1. “environmental claims” means and representation in any form regarding:
(i) any goods (either in its entirety or as a component), the manufacturing process, packaging, the manner of use of the goods, or its disposal; or
(ii) any service (or any portion thereof) or the process involved in providing service:-
suggesting environmentally friendly attributes aimed to convey a sense of environmental responsibility or eco-friendliness.
Explanation:- It may include claims for, but not limited to:
(i) having a neutral or positive impact on the environment or contributing to sustainability;
(ii) causing less harm to the environment than competing goods or services;
(iii) causing less harm to the environment than competing goods or services;
(iv) being more beneficial to the environment or possessing specific environmental advantages;
- “Service Provider” shall have the same meaning as defined under Guideline 2(1)(g) of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
- “Advertisement” shall have the same meaning as defined under the Consumer Protection Act, 2019.
- . “Advertising agency” shall have the same meaning as defined under the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
- “Greenwashing” means –
(i) any deceptive or misleading practice, which includes concealing, omitting or hiding relevant information, by exaggerating, making vague, false, or unsubstantiated environmental claims.
(ii) use of misleading words, symbols, or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes.Bu shall not include (i) use of obvious hyperboles, puffery, or (ii) the use of generic colour schemes or pictures; either not amounting to any deceptive or misleading practice; or (iii) a company mission statement that is not specific to any product or service.To illustrate: A company in its Mission Statement makes a statement that “its growth will be based on sustainability principles”. For the purpose of these guidelines this will not be treated as an environmental claim.
However, if the Company further adds to the above-stated statement “and all its products are manufactures in sustainable manner”, then such an environmental claim will be examined for greenwashing.
A copy of the guidelines is linked below for a detailed reference.
