Govt notifies greenwashing guidelines to prohibit companies from engaging in misleading environmental claims

The committee constituted of government officials, academia, practitioners and industry representatives, she added.

The Central Consumer Protection Authority (CCPA) notified greenwashing guidelines on October 15 to prohibit companies from making misleading environmental claims.

The government said it does not seek to prohibit companies from making environmental claims, rather it aims to ensure that such claims are made with integrity and transparency.

Greenwashing is any deceptive or misleading practice, which includes concealing, omitting, or hiding relevant information by exaggerating or making vague, false, or unsubstantiated environmental claims.

The government said the guidelines titled “Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024” are drafted in the wake of the rapid increase of advertisements of green (environmentally friendly) products and the growing number of environmentally aware consumers.

“Therefore, by creating an illusion of environmental responsibility, many unscrupulous companies end up exploiting consumers' growing environmental sensitivity. This deceptive practice not only misleads well-intentioned consumers but also diverts attention from broader environmental efforts. These guidelines are progressive regulations intended to harmonise the proactive efforts of manufacturers and service providers to address environmental issues and rising consumer interest in environmentally positive goods and services,” the government said.

Consumers Affairs Secretary Nidhi Khare told reporters while launching the greenwashing guidelines that a committee was constituted to frame the guidelines in November 2023. The committee constituted of government officials, academia, practitioners and industry representatives, she added.

The government had published the draft guidelines for greenwashing on February 20. Public suggestions were received from 27 various stakeholders.

Khare said the guidelines would apply to all environmental claims made by manufacturers, service providers, traders, advertising agencies, and endorsers whose service is availed for the advertisement.

“These Guidelines seek to foster truthful practices where environmental claims are both truthful and meaningful, thus enhancing consumer trust and encouraging sustainable business practices,” the government said in a press release.

What do the guidelines say?

The guidelines require manufacturers and service providers to substantiate their environmental claims with credible evidence which includes providing detailed information on the methodology and data used to support such claims.

The guidelines also prohibit use of vague or misleading terms such as "eco-friendly," "green," and "sustainable" without proper substantiation is sought to be prohibited.

The government said that the companies are required to provide clear and accessible disclosures of material information. The claims must specify the aspect refer to (good, manufacturing process, packaging, etc.) and be supported by credible certification or reliable scientific evidence, it added.

Third-party certifications are also accepted in substantiation of environmental claims.