Guidelines for ‘Prevention and Regulation of Greenwashing
Current Affair 1:
News:
In exercise of the mandate to regulate matters relating to misleading advertisements which is prejudicial to the interest of public and consumers, Central Consumer Protection Authority (CCPA) has issued guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims to address the issue of greenwashing and misleading environmental claims.
As per the guidelines, what you mean by Greenwashing?
Greenwashing” is a term that plays on the word ‘whitewashing’ and refers to the marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services, often using vague or unsubstantiated terms such as “natural,” “eco-friendly,” or “green.”
Key Features of the Guidelines:
- Clear Definitions: The guidelines provide clear definitions of terms related to greenwashing and environmental claims, ensuring that both businesses and consumers have a common understanding.
- Transparency Requirements: Manufacturers and service providers are required to substantiate their environmental claims with credible evidence. This includes providing detailed information on the methodology and data used to support such claims.
- Prohibition of Misleading Terms: The use of vague or misleading terms such as "eco-friendly," "green," and "sustainable" without proper substantiation is sought to be prohibited.
- Third-Party Certifications: Third-Party Certifications are also accepted in substantiation of environmental claims.
- Adequate Disclosures: The companies are required to provide clear and accessible disclosures of material information. Claims must specify the aspect refer to (good, manufacturing process, packaging, etc.) and be supported by credible certification or reliable scientific evidence.
Importance of these guidelines:
- These guidelines are designed not to stifle companies' environmental efforts of manufactures and service providers but to ensure that such claims are transparent and made with integrity.
- The primary goal of these guidelines is to shield consumers from misleading information while promoting genuine environmental responsibility within the business community.
- By mandating that companies substantiate their environmental assertions, the guidelines seek to foster a marketplace where environmental claims are both truthful and meaningful, thus enhancing consumer trust and encouraging sustainable business practices.