Pre-Requisite Caveats - CCPA Ring-Fences Greenwashing and Misleading Environmental Claims

India’s emergence as an investment haven and a shining market for consumer products, has augmented a spurt in green consumerism with environmentally conscious customers, and their sensitivity is being manipulated by companies, with an upsurge in greenwashing claims rampantly creating a false impression of being environmentally sustainable.

To maintain environmental accountability, the Central Consumer Protection Authority (CCPA) has in line with global best practices implemented in U.S.A, Australia and Europe, issued the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 (Guidelines), to promote transparency and integrity in such environmental claims by fostering honest practices in the interest of consumer protection.

These Guidelines mandate the manufacturers and service providers to ensure that their advertisements are substantiated, with verifiable cogent evidence, backed by qualifiers, providing complete disclosures, without use of any grandiose, ambiguous ‘sustainable’ or ‘green’ terminology, designed to mislead the public.

Background

On 9 June 2022, the CCPA had notified the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements. In continuation thereof, the Government constituted a greenwashing committee whose recommendations were incorporated in the draft greenwashing guidelines published on 20 February 2024, seeking feedback from the public and relevant stakeholders. Consequently, on 15 October 2024, CCPA has notified the new Guidelines, to prohibit any manufacturers, service providers, traders, advertising agencies and endorsers from raising any deceptive or misleading environmental or greenwashing claims.

As per the Guidelines, environmental claims, refers to a representation provided in any form whatsoever, made in relation to goods or services (in their entirety or any portion thereof), their manufacturing, use, disposal or the process involved, implying environmental responsibility, environmentally friendly attributes, or eco-friendliness.

Greenwashing is a deceptive or misleading advertising practice, which either conceals, omits, or obscures relevant information from the public, by exaggerating, making vague, false, or unsubstantiated environmental claims; or using misleading words, symbols, or imagery, or only placing emphasis on positive environmental aspects while downplaying or concealing the harmful attributes.

Key Highlights

These Guidelines are to be read harmoniously with other laws (governing this subject matter) including the Consumer Protection Act, 2019 (the Act) and in case of contravention, the Act shall prevail. In case of any interpretational ambiguity or dispute, CCPA’s decision shall be final.

Conclusion 

These Guidelines provide a robust framework for preventing greenwashing and misleading environmental claims, encouraging sustainable business practices, by mandating companies to ensure transparent, unambiguous and accurate substantiation, adequate disclosures, with fair and meaningful comparisons and verifiable evidence, backed by credible certifications, in support of their green marketing claims. 

These guidelines equip the consumer to make sound choices based upon unbiased scientific data by requiring the businesses to ensure their marketing strategies do not cause any consumer manipulation, thereby fostering the customer’s trust and integrity in the marketplace. 

• Achint Kaur (Counsel)

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