CCPA unveils guidelines to combat greenwashing

The Central Consumer Protection Authority (CCPA) has released comprehensive guidelines to prevent and regulate greenwashing and misleading environmental claims. These guidelines aim to promote truthful and meaningful environmental claims, fostering consumer trust and encouraging sustainable business practices.

Greenwashing is a deceptive marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services. By using vague or unsubstantiated terms like "natural," "eco-friendly," or "green," these companies create an illusion of environmental responsibility, exploiting consumers' growing environmental awareness. This practice not only misleads consumers but also distracts from broader environmental efforts.

A committee chaired by Consumer Affairs Secretary Nidhi Khare was formed to address greenwashing. This committee included members from academia, practitioners, activists, organizations, and representatives from various industries. After thorough deliberations, the committee submitted its recommendations, leading to the Department of Consumer Affairs (DoCA) releasing the Draft Guidelines for Greenwashing for public comments in February 2024.

Based on the public suggestions received, the guidelines emphasize the need for specific environmental claims to be supported by credible certification or reliable scientific evidence. Vague terms like "sustainable," "natural," "organic," and "regenerative" should only be used with accurate and accessible qualifiers. Adequate disclosures are essential for environmental claims such as "natural," "organic," and "pure."

The guidelines do not prohibit environmental claims but aim to ensure their integrity and transparency. The CCPA may initiate individual or class actions if investigations reveal violations of the Consumer Protection Act, greenwashing guidelines, or other relevant rules.

These guidelines are a response to the increasing number of green product advertisements and the growing environmental awareness among consumers. They are designed to ensure that companies' environmental claims are transparent and made with integrity, without stifling their genuine environmental efforts.

Companies are encouraged to highlight their environmental initiatives, provided they are backed by proper disclosures and credible evidence. The primary goal of these guidelines is to protect consumers from misleading information while promoting genuine environmental responsibility within the business community.

By requiring companies to substantiate their environmental claims, the guidelines aim to create a marketplace where environmental claims are truthful and meaningful, enhancing consumer trust and encouraging sustainable business practices.