“Earth provides enough to satisfy every man’s needs, but not every man’s greed”.
Mahtma Gandhi

With the world becoming more aware of environmental concerns, consumers are gravitating towards products that are purported to be green, sustainable, or environmentally friendly. However, not all such claims are as real as they appear. The businesses riding on this trend often use smart marketing techniques to deceptively promote their products or services as sustainable while having minimal to no effect on the environment. This practice, known as greenwashing, has become a significant concern for government to protect consumers and promote environment friendly practices.

Rising Threat of Greenwashing in India

Greenwashing is becoming a serious issue in India as companies resort to green washing to increase their market share and attract eco-friendly consumers by providing misleading information about their green practices or products being natural/sustainable. Most brands are now positioning themselves as being green and environmentally friendly, but they are, in fact, just taking advantage of changing consumer behaviours and employing green marketing strategies to make their products sell better. For example, firms may provide incentives for the return of plastic jars in the name of recycling, which may not necessarily represent a consumer’s whole year’s consumption. These promotions and offers are intended to lure consumers to spend more, and the green element is used as bait.

A study conducted by Accenture showed that though 78% of customers think that companies being eco-friendly is important, just 50% of them feel that companies are putting it into practice. Therefore, the implications of greenwashing are widespread; it misleads consumers, dilutes the credibility of genuine sustainability initiatives, and shifts the focus from actual environmental concerns. A survey conducted by Consumer VOICE found that nearly 40% of products marketed as “green” or “eco-friendly” in India did not have any certification to back up their claims. To resolve this issue, stricter regulations and explicit guidelines must be implemented to hold companies accountable for their environmental assertions.

The Role of ASCI and CCPA in Preventing Greenwashing

Before 2024, India lacked specific regulations to combat greenwashing. Even though the Guidelines for Prevention of Misleading Advertisements, which came into effect in 2022 under the Consumer Protection Act, addressed overall misleading advertisements, there was still a lacuna in specifically addressing environmental claims. To fill this, the Central Consumer Protection Authority (CCPA) and the Advertising Standards Council of India (ASCI) released guidelines focused on preventing and regulating greenwashing. These guidelines aim to safeguard consumers against deceptive advertisements while encouraging businesses to adopt sustainable practices supported by credible evidence.

ASCI’s Guidelines for Preventing Greenwashing

In 2024, ASCI released guidelines that outline clear standards for environmental claims by advertisers. These guidelines specifically state that companies can claim to be environmentally responsible, only if they can substantiate or validate their claims with tangible evidence.

Main Features of the ASCI Guidelines

1. Greenwashing is defined as the practice of making false, misleading, or deceptive environmental claims about products, services, processes, brands, or entire operations, or the act of omitting information to give the false impression that a product, service, process, brand or entire operation is less harmful or more beneficial to the environment than it is.
2. Environmental claims include a claim that implies or suggests that a product or service: 1) has a neutral or positive impact on the environment; 2) is less harmful to the environment than a prior version of the same product or service; 3) is less harmful to the environment than competing products or services; or 4) has specific environmental benefits.
3. General terms such as “eco-friendly” or “green” are not acceptable unless substantiated with evidence. Companies making comparative statements, such as “greener than others,” need to present concrete proof of the positive impact on the environment of their product or service.
4. Ambiguous terms like “green” or “natural” are not allowed unless they are defined clearly. Businesses need to be upfront regarding which parts of their product or service are environmentally friendly, be it the ingredients, the production process, packaging, or waste disposal method.
5. All environmental claims should be substantiated by independent third-party certification or valid scientific research. For example, a business claiming that its product is “carbon-neutral” should show proof that it has quantified its carbon footprint and neutralized the emissions in a quantifiable way.
6. A company must specify the aspects and ensure reliable data when comparing its product’s environmental friendliness to others.

CCPA Guidelines for Greenwashing

As per clause 6 of the guidelines, all advertisements making environmental claims must comply with the following obligations:

1. Terms like ‘clean’, ‘green’, ‘eco-friendly’, ‘eco-conscious’, ‘good for the planet’, ‘minimal impact’, ‘cruelty-free’, ‘carbon-neutral’, and similar phrases should only be used when they are properly qualified, backed by evidence, and disclosed appropriately.
2. When using technical terms like, Environmental Impact Assessment (EIA), or Greenhouse Gas Emissions, or Ecological Footprint it is necessary to describe those using easy, consumer friendly terms, and to explain their meaning or why they are relevant.
3. Any claim related to environment should be supported by verifiable evidence.

Examples of Environmental Claims

1. Truthfulness and Accuracy: Environmental claims must be truthful and precise, backed by verifiable information such as certificates from regulatory bodies, credible authorities, or internal verifiable evidence. In this context, a claim that reads, “Energy-efficient technology for a greener tomorrow!” is not credible unless there is data or comparison presented that relate to the claim.
2. Clarity and Precision: Claims should be clear and unambiguous. For instance, “Go green with our product!” is vague because it doesn’t explain what ‘green’ means or how the product is environmentally friendly. Therefore, Proper qualifications and evidence should be provided. Another example, “Made with minimal impact on the environment!” lacks clarity as it does not specify what “minimal impact” means, potentially overlooking environmental concerns related to the product.
3. Specific and Relevant Claims: For example, if a hand wash product is labelled “biodegradable” without clarification, the advertisement should specify that it is the hand wash itself, not the packaging, that is biodegradable. Companies are required to provide clear, accessible evidence for their environmental claims, in terms of text, QR code, or a link that goes on to some additional evidence and further explanations.
4. Future Sustainability: If a company is making claims about future sustainability goals, such as carbon neutrality by a certain year, it must have a detailed, actionable plan in place. That plan needs to be clear and achievable and not an abstract declaration or a vague promise.

Enforcement and Penalties

Penalties for greenwashing are outlined under Section 89 of the Central Consumer Protection Act (CCPA), which empowers authorities to act against companies making false environmental claims. Under the Act, first-time offenders could face up to two years of imprisonment and fines of up to ₹10 lakh. Repeat offenders may receive more severe penalties, including imprisonment for up to five years and fines reaching ₹50 lakh.

MoEFCC Draft Guidelines

In 2018, the Ministry of Environment, Forest and Climate Change (MoEFCC) introduced the draft “Guidelines for Environmentally Sustainable Practices” to combat greenwashing and encourage genuine sustainability initiatives. These guidelines provide a framework for companies, including requirements for transparency regarding their environmental impact, reliance on credible and verifiable information, and avoiding vague or misleading claims.

FSSAI Organic Food & Labelling Guidelines

In India, the Food Safety and Standards Authority of India (FSSAI) is the statutory body responsible for ensuring food safety and protecting consumer interests. The Food Safety and Standards (Organic Foods) Regulations, 2017, specifically address organic foods. These regulations outline the standards for the labelling, certification, and production of organic foods in India. As per these guidelines, no one is allowed to manufacture, pack, sell, market, or import organic food without proper certification, issued under the National Programme for Organic Production (NPOP). A product must be certified before it can be labelled as “Organic.”

FSSAI also issued directions regarding advertising claims. If food products use terms like “natural,” “fresh,” “pure,” “original,” “traditional,” “authentic,” “genuine,” or “real” in their branding, labelling, or advertising, and there’s a risk of misleading consumers about the product’s true nature, a disclaimer must be included on the label. The disclaimer should clearly state that the use of such terms might be deceptive. The size of the disclaimer text should be:

1. At least 1.5mm in height for packages smaller than 100 square cm.
2. At least 3mm in height for packages larger than 100 square cm.

Additionally, FSSAI’s directions cover food labelling rules, specifying that certain claims about fat, sugars, salt, etc., are only permitted if the food meets specific criteria.as an example for a “Low Fat” claim means the food contains 3g or less of fat per 100g for solids, or 1.5g or less per 100ml for liquids. Similarly, a “Low Sugar” claim indicates the food has 5g or less of sugar per 100g for solids, or 2.5g or less per 100 ml for liquids, while a “Free of Sugar” claim means the food contains 0.5g or less of sugar per 100g for solids or 100ml for liquids.

Fines Against Companies by Various Authorities

1. Godrej Industries was fined ₹5 lakh in 2012 by the Advertising Standards Council of India (ASCI) for falsely promoting its Good Knight Fast Card mosquito repellent. In its advertising, the company claimed the product was “100% natural” and “chemical-free.”
2. Hindustan Unilever Limited (HUL) faced charges from the Ministry of Environment and Forests (MoEF) in 2011 for misleading consumers about the environmental benefits of its Surf Excel Easy Wash detergent, which was claimed to be “100% natural” and “environment-friendly” and contained synthetic ingredients. The Central Pollution Control Board eventually fined HUL ₹10 lakh.
3. In 2013, Voltas Limited, a Tata Group company known for manufacturing air conditioners, was penalized for making misleading claims about the energy efficiency of its ACs. The company’s advertising stated that its ACs were “eco-friendly” and had a “5-star energy rating,” although the products did not have a 5-star rating. The ASCI fined Voltas ₹50,000.
4. In 2015, Godrej Consumer Products Limited was accused of falsely claiming the qualities of its Godrej No. 1 soap, indicating that it was “100% natural,” “biodegradable,” and “eco-friendly” when it contained synthetic materials. The ASCI fined Godrej ₹15 lakh.

These cases reveal the government resolve to arrest environmental puffery claims by companies that mislead customers into believing that the products they purchase are good for the environment and chemical-free.

Way Forward

To effectively tackle greenwashing, a collaborative effort involving various stakeholders such as consumers, companies, certification bodies, and the government is essential. Promoting sustainable and genuine practices can be achieved through several measures:

1. Consumer Awareness and Education: Young consumers genuinely want to purchase products that are sustainable and do not harm our environment. Therefore, they get lured into buying products touted as sustainable, recycled, eco-friendly, etc., as there is no mechanism for them to verify the green claims. Educating consumers about greenwashing and providing them with tools to identify it is crucial. Awareness campaigns can help consumers understand greenwashing tactics and how to interpret environmental claims accurately.
2. Transparency and Disclosure: Companies should establish transparency by making environmental impact data accessible to the public. When it comes to transparency, companies should honestly disclose information on how their products reduce carbon emissions, energy consumption, and water usage. They should identify measurable targets and offer valid third-party certification.
3. Media Campaigns: Media campaigns (e.g., advertisements, social media), can serve as opportunities for raising awareness of the problem of greenwashing and enhancing transparency and accountability. Companies can utilize these opportunities as another way to convey genuine sustainability actions and make environmental impact information public.
4. Regulations and Enforcement: While many countries have guidelines to regulate greenwashing, stricter enforcement is necessary to protect consumers. Governments should strengthen regulations and enforcement mechanisms to prevent and penalize greenwashing. This involves creating clear standards for environmental claims, ensuring proper oversight and monitoring, and imposing fines and penalties for non-compliance.
5. Third-Party Certifications and Standards: Establishing clear and measurable criteria for sustainable products and services through third-party certifications and standards can provide consumers with accurate and trustworthy information.
6. Fostering Innovation: Promoting new technologies and business models that reduce environmental impact can drive sustainability. Companies can foster innovation by investing in research and development and collaborating with other stakeholders.

By adopting a multi-faceted approach and measures described above the government and businesses can create a culture of sustainability and build a greener future. As Jane Goodall once said, “What you do makes a difference, and you have to decide what kind of difference you want to make!”