Draft Guidelines on Prevention and Regulation of Greenwashing

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Central Consumer Protection Authority (CCPA) has sought public comments on the proposed guidelines, which shall be issued under Consumer Protection Act, 2019.

Greenwashing: Means any deceptive or misleading practice, which includes concealing, omitting, or hiding relevant information, by exaggerating, making vague, false, or unsubstantiated environmental claims.
- Also includes use of misleading words, symbols, or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes.

Key highlights of the Draft Guidelines
- Applicability: On all advertisements regardless of form, format, or medium.
  - Also applicable on service provider, advertiser, endorser, etc., of the advertisement.
  - Excludes advertisement/ communication not specific to any product or service.
- Prohibition: No person to whom guidelines apply shall engage in Greenwashing.
- Substantiation of Environmental Claims: Generic terms such as ‘clean’, 'green', 'eco-friendly', 'eco-consciousness', 'carbon neutral', etc., shall not be used without adequate qualifiers and substantiation.
- Adequate Disclosure: All environmental claims in ads or communications shall be fully disclosed.
  - Comparative environmental claims that compare one product/ service to another must be based on verifiable and relevant data that is disclosed to consumers.
  - Disclosures should be easily accessible to consumers and not contradict relevant claims.
- Aspirational or futuristic environmental claims may be made only when clear and actionable plans has been developed detailing how those objectives will be achieved.