Regulatory updates

'Greenwashing' refers to any deceptive or misleading practice, including actions like concealing, omitting, or distorting relevant information by exaggerating, making vague, false, or unsubstantiated environmental claims, or using misleading language, symbols, or visuals, and emphasising positive environmental aspects while downplaying or hiding negative ones.

On 15 October 2024, the Central Consumer Protection Authority (CCPA) issued guidelines for the Prevention and Regulation of Greenwashing and Misleading Environmental Claims (Greenwashing guidelines) to address green washing and deceptive environmental statements. The Greenwashing guidelines aim to foster honest practices where environmental claims are both accurate and meaningful, thereby enhancing consumer trust and promoting sustainable business practices.

Key features of the greenwashing guidelines are as follows:

• Applicable to all environmental claims by manufacturers, service providers, or traders whose goods or services are advertised, as well as advertising agencies and endorsers.
• Clear definitions of various terms related to greenwashing and environmental claims have been provided.
• The greenwashing guidelines prescribe detailed disclosure requirements with respect to the nature, mode, and content related to environmental claims of goods and services.
• Prohibits using environmental claims without credible evidence of the same in the form of third-party certificates, scientific evidence, etc.
• A guidance note with illustrations to help the industry comply with the greenwashing guidelines has been annexed to the greenwashing guidelines.

The Greenwashing guidelines are applicable with effect from 15 October 2024.

To access the guidelines please click here