The Central Consumer Protection Authority (CCPA) has released ‘Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024‘ aimed at preventing and regulating greenwashing and misleading environmental claims.
- This initiative addresses the growing concern over false marketing practices that mislead consumers regarding the environmental benefits of products, and encourage sustainable business practices.
Background:
i.A committee led by Nidhi Khare, Secretary Department of Consumer Affairs (DCA), Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD), and Chief Commissioner of CCPA, including members from academia, legal practitioners, consumer organizations, and industry representatives viz. Advertising Standards Council of India (ASCI), Federation of Indian Chambers of Commerce and Industry (FICCI), Associated Chambers of Commerce and Industry of India (Assocham), and Confederation of Indian Industry (CII), led to the development of the guidelines after thorough deliberations.
ii.The draft guidelines were opened for public comments on February 20, 2024, receiving input from 27 stakeholders, which helped refine the final document.
iii.These guidelines are in furtherance to the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’.
Key Highlights of the Guidelines:
i.Definition of Environmental Claims (Section 2(e)): Refers to representations about products or services that suggest environmentally friendly attributes, including components, manufacturing processes, and disposal methods.
ii.Definition of Greenwashing (Section 2(f)): Describes deceptive practices where companies conceal, exaggerate, or make vague claims about the environmental benefits of their products, often using misleading symbols or imagery.
iii.Application of the Guidelines (Section 3): These guidelines apply to all environmental claims made by manufacturers, service providers, advertisers, and endorsers.
iv.Prohibition Against Greenwashing (Section 4): Strictly prohibits engaging in misleading environmental claims.
v.Substantiation and Disclosure Clauses (Section 5): Companies must substantiate their claims with clear and credible evidence and provide adequate disclosures regarding the claims made.
- Claims must specify the aspect refer to (good, manufacturing process, packaging, etc.) and be supported by credible certification or reliable scientific evidence.
- Vague terms like ‘natural’, ‘eco-friendly’, ‘clean’, ‘cruelty free’, ‘organic’, ‘good for the planet’, ‘minimal impact’, ‘pure’, ‘carbon neutral’ or ‘green’, or other similar claims should only be used if backed by credible evidence.
- Companies must not conceal harmful attributes of their products when making positive environmental claims.
- Environmental claims should ideally be validated by reputable third-party organizations to enhance credibility.
What is Greenwashing?
It is a marketing practice where companies exaggerate or falsely claim the environmental benefits of their products to make good impression, often using vague language without proper substantiation, thus, misleading consumers.
Recent Related News:
i.Udaan, a B2B (Business to Business) e-commerce company, has partnered with the MOCAF&PD, and the Small Industries Development Bank of India
(SIDBI) to transform Fair Price Shops (FPSs) into Jan Poshan Kendras (JPK).
ii.Union Minister Pralhad Joshi, MoCAF&PD launched the Version 4.0 Price Monitoring System (PMS) Mobile Application (App) in New Delhi, Delhi.
About Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD):
Union Minister– Pralhad Joshi (Constituency- Dharwad, Karnataka)
Ministers of State (MoS)- Banwari Lal (BL) Verma (Rajya Sabha- Uttar Pradesh(UP); Nimuben Jayantibhai Bambhaniya (Constituency- Bhavnagar, Gujarat)
