WHAT HAS HAPPENED?
The Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 (“Guidelines”) are notified on October 15, 2024, by the Central Consumer Protection Authority (“CCPA”) under Section 18 of the Consumer Protection Act, 2019 (“CPA”).
The Guidelines enhance consumer protection and ensure transparency in eco-friendly marketing. The Guidelines aim at combating greenwashing - the practice of making misleading claims about the environmental benefits of products or services.
SCOPE & APPLICABILITY
The Guidelines apply to all forms of advertising, including digital, print, and broadcast media.
The Guidelines encompass service providers, product sellers, advertisers, advertising agencies, and endorsers involved in marketing goods or services that make environmental claims.
These Guidelines will restrict deceptive practices that involve exaggerating or making vague, false, or unsubstantiated environmental claims and will include concealment of relevant information and use of misleading words or imagery.
Environmental claims may relate to various aspects of a product or service, such as its manufacturing process, packaging, usage, or disposal.
The Guidelines mandate that any environmental claim must be specific and substantiated. Environmental claims like “eco-friendly” or “sustainable” can only be used if they are supported by adequate disclosures and verifiable evidence.
EXCLUSION
The Guidelines do not apply to advertisements or communications that do not specifically promote a product or service. For example, a company stating its commitment towards sustainability in general terms without linking it to specific products will not be subject to these Guidelines.
SUBSTANTIATION OF ENVIRONMENTAL CLAIMS
Substantiation of Environmental Claims: Terms such as “100% eco-friendly”, “zero emissions,” and “cruelty-free” must now be supported by credible certifications or reliable scientific evidence. Companies are required to disclose whether their claims pertain to the product itself, its manufacturing process, packaging, usage, or disposal.
Consumer-friendly language: The guidelines mandate that companies use language that is accessible to consumers, especially when explaining technical terms related to environmental impact. This aims to prevent confusion and ensure that consumers can make informed decisions.
Transparency in advertising: Companies must provide material information in their advertisements, which can be done through QR codes or URLs for easy access. This includes specific details about the environmental claims being made.
Aspirational Environmental Claims: Any future-oriented environmental claims must be backed by clear, actionable plans. This provision aims to prevent companies from making vague promises without a solid foundation.
Regulatory framework: While these Guidelines supplement existing regulations, it clarifies that in cases of conflict with specific laws, those laws will take precedence. The Central Authority will have the final say in any disputes regarding interpretation.
GUIDANCE FOR MAKING GREENWASHING CLAIMS
Aspect | Requirement | Example |
Truthfulness and Accuracy | Claims must be verifiable with credible evidence.  | “Our bottles are made with 50% ocean plastic.”
Requires documentation showing the source and percentage of ocean plastic used. |
Clarity and Unambiguity | Claims should be clear and substantiated.  | “Made with minimal impact on the environment!”
Without specifying what “minimal impact” means, this claim may downplay or ignore certain environmental concerns associated with the product. |
Fair and Meaningful Comparisons | Comparative claims need verifiable data and context.
 | “Our vegan leather bags use 70% less water than traditional leather.”
For a meaningful comparison, data on the lifecycle of water use for both materials should be given. |
Absolute and Relevant Claims | Claims should specify the aspect of the product they pertain to.  | “Packaging is 100% biodegradable.”
Specify if this includes only the box or also the inner packaging and the means to recycle the biodegradable material. |
Use of Imagery Without Substantive Changes | Visuals must accurately represent the environmental claim.  | Ad showing electric cars in a forest setting with the tagline “Drive into the green future.”
Should accurately represent the car’s environmental benefits without overstating. |
Endorsements by Environmental Organisations or Experts | Endorsements need to be real and from credible sources.  | “Endorsed by the Global Green Energy Council.”
This claim requires an official endorsement visible on the council’s official communications. |
WHAT IF I ENGAGE IN GREENWASHING?
Companies must ensure their environmental claims are accurate and well-supported to avoid serious legal repercussions and uphold consumer trust in a market that increasingly values sustainability. Greenwashing is treated as an unfair trade practice and, in some cases, as a misleading advertisement under the CPA, subjecting violators to similar risks.
Organisations found guilty of greenwashing can face significant penalties, including fines of up to ten lakh Rupees (INR 10,00,000) and imprisonment for up to two (2) years for first-time offenses. Repeat violations may result in imprisonment of up to five (5) years and fines reaching fifty lakh Rupees (INR 50,00,000), particularly if environmental claims in advertisements or public statements are found to be unverified, unsupported, or non-compliant with the established Guidelines.
CONCLUDING REMARKS
The rollout of these Guidelines marks a pivotal moment in consumer protection and environmental accountability in India. By establishing stringent requirements for substantiating environmental claims, these Guidelines serve to enhance transparency in marketing practices across various industries.
These Guidelines not only aim to protect consumers from misleading claims but also encourage businesses to adopt genuine sustainable practices. Companies will now be compelled to provide verifiable evidence for their eco-friendly assertions. This shift is particularly beneficial for businesses that prioritize authentic sustainability, as it allows them to differentiate themselves from those engaging in greenwashing.
As consumers become increasingly aware of environmental issues, the demand for transparency and accountability will only grow. The Guidelines empower consumers to make informed choices, ultimately promoting a more responsible and sustainable economy.
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