Greenwashing, has been permeating the market at a global level. Thus, the Guidelines seeks to combat the false environmental claims made by the businesses about their products. The Principal Objective of the guidelines is to protect the interest of the consumer against the un-substantiated environmental claims made by pretending it to be environmentally friendly. The consumer would become a better judge, whether the environmental claims are in align with the advertisement or communication made by the businesses.

Scope of the Guidelines

• Applicability:

Clause 3 of the draft guidelines discusses its application. The guidelines are applicable to all advertisements regardless of the form or medium, to a service provider, product seller, advertiser, or an advertising agency or endorser of such goods and services. The applicability of the guidelines covers a wide spectrum of relevant stakeholder accountability.

• Non-Applicability:

Clause 4 of the draft guidelines discusses its non-application. These Guidelines are, not applicable to any advertisements or communication that is not specific to any product or services, which suggests that there must be some direct or indirect nexus of the advertisement or communication with the product or service.

To Illustrate the Non-Applicability: A Beverage Company advertises that "it supports environmental conservation." For the purpose of these guidelines, this will not be treated as an environmental claim.

However, if the Beverage Company further asserts that "and all our bottles are made from 100% recycled materials," then such an environmental claim will be examined for greenwashing.

Concept Of Greenwashing Vis-À-Vis Environmental Claims

The Guidelines, defines the term as, "Greenwashing" means-

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

^ii. use of misleading words, symbols, or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes ^[[1]]

The term greenwashing has limited its scope by not including hyperboles, puffery, and the use of generic colour schemes or pictures; but such should not amount to any deceptive or misleading practice.

The Definition of Environmental claims ^[[2]] in the Guidelines, provides for an inclusive definition which is not exhaustive, and its scope is left to judicial interpretation. It is defined as any representation suggesting environmentally friendly attributes of a good or service, including its components, manufacturing process, packaging, use, or disposal. These claims may indicate a neutral or positive environmental impact, improved sustainability, reduced harm compared to previous versions or competing products, or specific environmental benefits, all aimed at promoting a sense of environmental responsibility.

Key Provisions of Draft Guidelines

The draft guidelines provides that any engagement in greenwashing, by any person is prohibited.

Clause 6 of the Draft guidelines discuss that, there must be a proper substantiation of the Environmental Claims such as, Generic terms, such as 'Clean', 'green', 'eco-friendly' and other similar assertions not to be used without adequate qualifiers and disclosures. There must be a consumer-friendly approach in the language used, while avoiding the technical terms such as Environmental Impact Assessment (EIA), Ecological footprint etc. This inclusion would indeed foster consumer trust and enhance relatability to environmental causes.

Clause 7 discusses about the Adequate Disclosure part. It states that businesses making environmental claims, should be accurate and adequate disclosures are to be made in their advertisements or communication, or by inserting a QR Code or Weblink. Also, the research data shall not be selected with the favorable information with regards to the disclosures, there must also be inclusion of Unfavorable ones.

Thue guideline further elaborates upon Comparative Environmental Claims and Specific Environmental Claims, to be based upon relevant and verified data. The former one depicts that when one product or services are compared to another, then such claims must disclose exactly what are the facets being compared. The latter one provides for an inclusive definition, i.e., claims such as 'Carbon Offsets ', 'Non-toxic', '100% Natural' etc. and other similar assertions, must be backed by credible certification, or reliable scientific evidence or independent third-party verification.

It is also important to note that, the word 'Advertiser' and 'Advertising agency' to have same meaning as defined under the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

The guidelines also stipulate that claims regarding aspirational or futuristic environmental goals can only be made if clear and actionable plans have been developed, detailing the steps to achieve those objectives.

It is explicitly stated that the provisions of the Consumer Protection Act, 2019, will apply in the event of any contravention of these draft guidelines. If any dispute or ambiguity arises in interpretation, the decision of the Central Consumer Protection Authority will be final.

Penalty For Guilty Of Greenwashing

Section 89[3] provides, if any advertisement or communication of any means containing environmental claims is found to be unsubstantiated, non-verifiable or otherwise contrary to the provisions of the Guidelines, it may attract imprisonment for a term extending to two (02) years and fine extending to ten lakh Rupees (INR 10,00,000/-). And, for every subsequent offence, the punishment may extend to imprisonment for up to five (05) years and a fine of up to fifty lakh Rupees (INR 50,00,000/-).

The Draft Guidelines have a very consumer-friendly approach; thus, it protects the consumers from falling into the trap of Greenwashing by the businesses. While on the other hand, it makes it hectic for the businesses to follow the adequate disclosure norms as discussed above in the Article. The compliance and disclosure requirements could make the product or service slight heavy on pockets of consumer. However, this is a positive step towards also protecting the environment, rather than the false claims made of its protection.

Views are personal.