The new guidelines aim to strengthen the fight against deceptive environmental claims and promote transparency and honesty in advertising.
Published Oct 18, 2024 | 7:00 AM ⚊ Updated Oct 18, 2024 | 7:00 AM
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The terms – carbon neutral, natural, organic, pure, and sustainable – will now carry significant weight in India, as companies must substantiate these claims before presenting them to consumers.
This change follows the release of new guidelines by India’s consumer protection authority to address greenwashing and misleading environmental claims in product advertising.
The Central Consumer Protection Authority (CCPA) has issued the “Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024.”
These guidelines aim to strengthen the fight against deceptive environmental claims and promote transparency and honesty in advertising. They apply to all entities making environmental claims, including manufacturers, service providers, traders, advertising agencies, and endorsers whose goods, products, or services are advertised.
Under these guidelines, greenwashing or misleading environmental claims are strictly prohibited. The regulations demand that all environmental claims in advertisements meet specific criteria to ensure their authenticity.
The following terms must now have clear qualifiers and substantiated when used in advertisements:
– Clean
– Green
– Eco-friendly
– Eco-conscious
– Good for the planet
– Minimal impact
– Cruelty-free
– Carbon neutral
– Natural
– Organic
– Pure
– Sustainable
– Regenerative
Advertisers are required to provide adequate disclosure and support for these claims, as outlined in the guidelines.
Moreover, when using technical terms like “Environmental Impact Assessment (EIA),” “Greenhouse Gas Emissions,” or “Ecological Footprint,” companies must explain these concepts in consumer-friendly language to ensure clarity and understanding.
All environmental claims must be supported by accessible, verifiable evidence derived from independent studies or third-party certifications. This measure aims to prevent the spread of misleading information and foster transparency in marketing practices.
This in turn, is expected to create a trustworthy environment where consumers can make informed decisions based on accurate data.
The new guidelines define ‘environmental claims’ as any representation in any form related to products, their components, manufacturing processes, packaging, usage, disposal, or services that imply environmentally friendly attributes, convey a sense of environmental responsibility or eco-friendliness.
These claims may encompass assertions about having a neutral or positive impact on the environment, contributing to sustainability, causing less harm compared to previous versions or competing products, or offering specific environmental advantages.
‘Greenwashing’ is characterised as any deceptive or misleading practice that involves exaggerating, making vague, false, or unsubstantiated environmental claims. This includes the use of misleading words, symbols, or imagery to emphasise the positive environmental aspects of a product or service while downplaying or concealing its harmful attributes.
However, the guidelines clarify that greenwashing does not encompass the use of obvious hyperboles, puffery, generic colour schemes, or imagery that do not amount to deceptive or misleading practices. Additionally, company mission statements that are not specific to any product or service are not included in this definition.
For instance, if a company declares in its mission statement that “its growth will be based on sustainability principles,” this statement will not be classified as an environmental claim under the guidelines. Conversely, if the company elaborates on that statement by asserting, “and all its products are manufactured in a sustainable manner,” such a claim would be subject to scrutiny to ensure it does not fall under the category of greenwashing.
An increase in number of environmentally conscious consumers have created an environment ripe for greenwashing, a practice in which companies misleadingly assert that their products are environmentally friendly.
This phenomenon, along with deceptive environmental claims, can have serious implications for public health by obscuring the genuine risks associated with products marketed as “green” or “eco-friendly.”
One of the primary concerns is the misleading perception of safety. When products are labelled as “organic,” “pure,” or “natural,” consumers may mistakenly believe they are free from harmful chemicals.
This false sense of security can result in increased exposure to hazardous substances if these claims are not backed by reliable evidence.
Some products advertised as organic may still contain harmful pesticides or contaminants that pose health risks, particularly for vulnerable groups such as children and pregnant women.
Furthermore, greenwashing often thrives in industries with lax regulations. This can lead to the sale of products that do not meet safety standards, which can result in health risks like respiratory issues, allergies, and chronic diseases due to prolonged exposure to toxic substances.
The links between environmental pollution and health cannot be overlooked. Environmental degradation, often obscured by greenwashing claims, contributes to air and water pollution with direct health consequences.
Pollutants such as particulate matter (PM2.5) are associated with serious health issues, including cardiovascular diseases and respiratory illnesses. Continuous exposure to these pollutants can lead to chronic health conditions, with misleading claims preventing individuals from recognising and mitigating these risks.
Vulnerable populations, including low-income communities, often bear the brunt of environmental hazards exacerbated by greenwashing.
These groups may be more likely to purchase products based on misleading claims due to limited access to information, leading to higher exposure to harmful substances.
Children and pregnant women are particularly susceptible to environmental pollutants; misleading claims about product safety can lead parents to make harmful choices, increasing the risk of developmental issues and long-term health problems.
Companies are urged to seek third-party certifications to validate their environmental claims and enhance transparency.
The Central Consumer Protection Authority (CCPA) has clarified that these guidelines aim to support—not hinder—companies in their pursuit of environmental responsibility, ensuring that claims are made with honesty and integrity.
According to the CCPA, any entity making an environmental claim must disclose all material information within their advertising or communication.
This can be done directly or through a QR code, URL, or other digital mediums that provide detailed information. Furthermore, research data used to substantiate these claims must not selectively highlight favourable findings while disregarding unfavourable ones.
It is essential to clearly state whether the claim pertains to the product itself, its components, manufacturing process, packaging, usage, disposal, or the service provided.
Regarding comparative environmental claims, the CCPA specifies that such claims must be based on verifiable and relevant data.
“These claims must specifically disclose the exact aspects being compared to, to avoid misleading consumers,” the CCPA stated.
Additionally, claims such as – compostable, degradable, non-toxic, 100% natural, recyclable, refillable, renewable, plastic-free, climate-positive, net-zero – and similar phrases must be supported by credible certifications, reliable scientific evidence, or independent third-party verification.
Disclosures related to environmental claims must be easily accessible to consumers and must not contradict the advertised claim. Aspirational or futuristic environmental claims are only permissible if there are clear, actionable plans in place detailing how those objectives will be achieved.
The guidelines assert that these provisions are supplementary to existing regulations and do not supersede other specific laws. In cases of conflict, the specific law will take precedence.
It should be noted that the CCPA has introduced guidelines following the Advertising Standards Council of India’s (ASCI) new regulations on environmental claims in advertising, effective 15 February 2024.
While ASCI operates as a self-regulatory body, its guidelines align with the regulations set forth by the Central Consumer Protection Authority (CCPA), which addresses misleading advertisements. Violations of these guidelines can lead to actions under the Consumer Protection Act.
(Edited by Neena)
