Consumer Affairs Ministry to finalise guidelines to combat greenwashing

The Department of Consumer Affairs and the Central Consumer Protection Authority are in the process of finalizing guidelines to prevent greenwashing and safeguard consumer interests. As per the draft guidelines, companies making environment-related claims using words like "green," "eco-friendly," "cruelty-free," and "good for the planet" need to provide verifiable evidence and proper disclosures.

The guidelines specify that companies need to ensure the accuracy of environmental claims and disclose all relevant information in advertisements, communications, or through methods such as QR codes. Verifiable evidence must support all environmental claims. 

The draft emphasizes that when making disclosures related to environmental claims, companies should not selectively present research data to highlight favourable observations while concealing unfavourable ones.

Brands will need to ensure that the environment-related claims specify whether it refers to the good, services, manufacturing process, packaging or manner of use of the good among others.

“Specific environmental claims must be supported by credible certification, reliable scientific evidence, and independent third-party verification to maintain their authenticity,” the draft guidelines stated. Greenwashing refers to advertising or marketing tactics used by brands to make deceptive claims about being environmentally friendly.

A committee, chaired by Consumer Affairs Secretary Rohit Singh, is tasked with preparing guidelines for the "Protection of consumers against Greenwashing." The committee members discussed the draft guidelines, which also provide a Guidance Note for environmental claims with practical examples to assist the industry.

Penalties for misleading greenwashing ads will be governed by the Consumer Protection Act, 2019. This follows after the self-regulatory industry body, Advertising Standards Council of India (ASCI) proposed guidelines that aim to bring transparency and accountability in environmental claims-based advertising. The draft guidelines focus on various green claims, including positive impact on the environment, carbon offset, and biodegradable claims and also aim to check greenwashing. ASCI released the draft guidelines for public consultation till December 31, 2023.