New Guidelines to Stop Greenwashing Practices in India

Understanding Greenwashing and Its Impact

• Greenwashing defined as deceptive practices where companies make false environmental claims
• Common examples include misuse of terms like "natural," "organic," or "eco-friendly"
• Notable cases include Volkswagen emissions scandal and accusations against Shell and BP
• Undermines genu
• ine environmental efforts and misleads consumers
• Growing concern due to increased public demand for sustainable products

Key Features of CCPA Guidelines

• Comprehensive framework titled "Guidelines for Prevention and Regulation of Greenwashing, 2024"
• Strict regulations on use of generic environmental terms
  • Terms like "sustainable," "clean," "green" require proper substantiation
  • Must include adequate qualifiers and disclosures
• Mandatory scientific evidence requirements
  • All claims must be backed by verifiable data
  • Third-party certifications encouraged
  • QR codes or webpage links required for detailed information
• Clear language requirements
  • Technical terms must be explained in consumer-friendly language
  • Complete disclosure of material information

Enforcement and Penalties

Violations can result in significant penalties:

• • Initial fines up to ₹50,000
  • Repeated violations may lead to ₹1 crore penalty
  • First-time advertising offenses: up to ₹10 lakh fine
  • Repeat offenders: up to ₹50 lakh fine and possible 2-year imprisonment

Consumer protection measures

• • Right to seek compensation for damages
  • Access to verifiable evidence
  • Protection against misleading claims

International Alignment

• Guidelines similar to UK's Green Claims Code (2021)
• Aligns with European Union's Green Claims Directive
• Part of global effort to combat greenwashing
• Emphasizes transparency and accountability in environmental marketing