The article is authored by Ankita Singh, an advocate with a deep passion for Corporate and Commercial Law, including Alternative Dispute Resolution (ADR). She seamlessly combines her legal expertise with unwavering dedication, striving to make a meaningful impact in the legal field.
How Consumer Laws Can Combat Environmental Deception
With the escalating need to protect our environment, the demand for genuinely green products has skyrocketed. Many companies now claim their products are sustainable. However, the truth in these claims is often hidden by vague certifications, marketing jargon, and misleading labels. This leads consumers to question whether these products are indeed as environmentally conscious as they seem or if they are merely greenwashing.
WHAT IS GREENWASHING AND ITS HISTORY?
Greenwashing is a deliberate strategy that misleads consumers by making false or exaggerated claims about a product’s environmental benefits or impact. The term comes from a combination of “green,” representing eco-friendliness, and “whitewashing,” which refers to the act of hiding the negatives. It was first coined by prominent environmental activist Jay Westerveld in 1986 in an astute essay. Westerveld explained how a hotel in Fiji launched a towel reuse program, portraying it as a gesture towards environmental responsibility. In reality, this initiative coincided with the hotel’s expansion projects, which were causing significant ecological damage.
Recognizing this contradiction, Westerveld highlighted that the program was primarily about cutting operational costs rather than genuinely protecting the planet. This revelation gave rise to the term “greenwashing,” which aptly captures this misleading practice.
MISLEADING LABELS
Many products in the markets today have misleading labels that cause consumers a lot of confusion. Some of these terms include “eco-friendly,” “organic,” “paper tube packaging,” and “100% recycled bottle.” Sometimes, the usage of such terms can make a product seem much more green or environmentally conscious than it actually is. Other times, brands have initiated claims such as “planting one tree on every purchase of consumer,” implying a commitment to environmental stewardship.However, such claims must not go without recognizing credible certification or solid proof else; they qualify to be treated as deceptive marketing practices. The consumer must also stay alert and call for more transparency while reviewing such claims.
This is one of the biggest concerns in relation to the uncertainty surrounding the environmental impact of many products. Companies often overstate their claims of sustainability by using a manipulative practice called “greenwashing,” which is a type of “Dark Pattern.” This erodes consumer trust and slows the meaningful steps toward real ecological sustainability. Companies need to be held accountable, and consumers should demand transparency in their environmental practices.
REAL-LIFE EXAMPLES
Such practices often go unnoticed when an unpopular brand does it, but when an established and reputable brand does the same, it significantly damages trust, reliability, and reputation. A prime example is L’Oréal, a very popular skincare brand, which was accused of greenwashing. The brand was fined for misleading claims about its ‘Elvive Full Restore 5 shampoo’marketed as being “more sustainable” and packaged in a “100% recycled plastic bottle.” However, the Changing Markets Foundation (CMF) revealed these claims to be deceptive, pointing out that even the bottle cap was not made from recycled materials. Consequently, L’Oréal not only had to pay a substantial fine but also faced widespread criticism.[1]However, L’Oréal is not the only brand to earn a spot in the “hall of shame” for false claims in branding. Several other prominent companies, including Toyota, Volkswagen[2], and Coca-Cola[3], have also been implicated in similar practices.
Let’s take the case of a globally recognized brand like McDonald’s. The company has not incurred fines for greenwashing, but recent reports from the Greenwash Team have focused attention on its efforts to polish its public image through various initiatives that seem to be environmentally friendly.
McDonald’s has been actively sharing visually appealing images and engaging videos that depict idyllic farms and showcase the ambitious effort of planting millions of trees as part of its “Plan for Change” campaign. These promotional materials convey the message that McDonald’s is making strides toward more sustainable business practices.[4]
However, notwithstanding these well-strategized accounts, the practices have attracted many skeptics. The critics consider that the evidence given by McDonald’s is vague and lacks details and practical proof, giving most people a dilemma about the effective environmental impact caused by the effort. Without the details and other concrete information, the sustainability issue of their arguments cannot be certified.
Hence, it is crucial for consumers to critically evaluate the products they purchase, asking themselves: Are these products genuinely sustainable, or are they merely a façade of green marketing?
WAYS TO SPOT GREENWASHING BY CUSTOMERS
- Find supporting evidence
Consumers are supposed to seek verifiable certificates issued by recognized authorities in the form of certificates, reports, or detailed information available on their websites. A recent European Commission report indicates that there has been a substantial increase in “greenwashing” since an increasing number of consumers demand environmentally friendly products. Alarmingly, in more than half of these cases, traders are unable to provide credible evidence to support their sustainability claims. Through prioritizing transparency and verifying claims, consumers can make informed choices and hold businesses accountable.
INITIATIVE- The Green Claim Directives
In 2022, the European Commission proposed a directive focusing on areas such as ensuring that environmental claims are based on rigorous, science-based, and verifiable methods. The directive also mandates traders to submit and regularly update reports verifying their claims.[5]
2. Be cautious of ambiguous claims.
One should not blindly believe in the claims made by brands, especially when they use ambiguous terms such as “natural” and the like. Such terms do not guarantee authenticity or truth. The European Commission report explicitly states that in 37% of cases, traders and sellers had adopted misleading tactics. It is necessary to authenticate the claims before believing them.
INITIATIVE- Unfair Commercial Practices Directives
In 2024, the European Commission decisively updated the 2005 directives to explicitly classify greenwashing as an unfair commercial practice.[6]
3. Identify concealed compromises
There may be instances where a brand’s claim is supported by evidence and holds true. However, the brand might simultaneously contradict its claims through other negative actions impacting the environment. This, too, constitutes greenwashing, as demonstrated in the notable Hotel Fiji case (above). Hence, consumers need to have a watchful approach.
4. The company’s performance in keeping pledges
Track the history of the company of living by its promise to consumers; find out whether it has been delivering on its promise and guarantees as far as its claims about being environment-conscious. This can be traced through reports available on their website, among other articles or magazines, blogs, and other online platforms.
NOTE:In order to check the authenticity of their respective brand claims, one can visit websites, namely, greenwash.com, Sweep, and The Client Earth; they not only keep the records but also help uncover the truth of the brand’s ecological claim.
EFFORTS TO MITIGATE GREENWASHING
The United Nations Secretary-General has hosted the Climate Ambition Summit at the UN Headquarters in New York, focusing on three core objectives: Ambition, Credibility, and Implementation[7]. This targets the reduction of greenwashing and blame-shifting and ensures transparency to consumers while avoiding further damage to the environment.
In India, following the various Reports, the Central Consumer Protection Authority (hereinafter to be referred as CCPA) under the Department of Consumer Affairs constituted a committee with the help of which the CCPA laid out ‘Guidelines for the Prevention and Regulation of Greenwashing’ 2024[8]. This is the most significant stride forward as the Consumer Protection Act of 2019 failed to define the term “greenwashing.” In doing so, the lack of such a definition rendered it difficult for consumers to comprehend the concept thoroughly and, consequently, hindered their ability to identify the same. The absence of a well-defined framework created ambiguity, leading to delays in legal proceedings and, in some cases, the unfortunate loss of claims.
Key features of the guidelines are:
- Introduction of a clear and vivid definition
- Achieving transparency by adequate disclosure
- Prohibition on using misleading terms
- Third-party certification allowed[9]
‘Guidelines for the Prevention and Regulation of Greenwashing’ 2024 defines GREENWASHING as[10]:
- Any deceptive or misleading practice, which includes concealing, omitting, or hiding relevant information by exaggerating, making vague, false, or unsubstantiated environmental claims.
- Use of misleading words, symbols, or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes.
But shall not include
(i) the use of obvious hyperboles puffery, or (ii) the use of generic color schemes or pictures, either not amounting to any deceptive or misleading practice.
With the exhaustive definition now in place, sellers and manufacturers engaging in such practices can be penalized under Section 89 of the Consumer Protection Act, 2019, which stipulates that:
Section 89: Punishment for false or misleading advertisement
Any manufacturer or service provider who causes a false or misleading advertisement to be made that is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with a fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees.
With the changing times, new issues have been seen time and again on the respective cause, and measures have been taken to combat these issues. However, their mere presence will not bring any significant change unless steps are taken to raise awareness[11] among consumers or the public at large. Otherwise, it will just be a drop in the bucket. Although numerous guidelines have been issued both globally and nationally to counter the manipulative strategies employed by these brands, the path to true transparency is still fraught with complexities and remains an ongoing process.
ACTION PLAN TO BE FOLLOWED TO COMBAT ECO-DAMAGING TRADE PRACTICES
1. AWARENESS PROGRAMSBY GOVERNMENT AND NGO’s
Cybercrime is at an all-time high, and governments are rightfully taking action to raise awareness. Likewise, it is imperative that we also confront greenwashing with the same level of urgency. Environmental degradation is a serious crisis that demands our immediate and unwavering attention in today’s world.
2. BY BRANDS
Brands should genuinely explain the intent of their statements and include transparent procedures on how to validate authenticity. Including supporting certificates right on the product’s images will make these guarantees readily available and will build consumer confidence.
3. BY SOCIAL MEDIA
Since influencers have an important place in today’s marketing world,there is an added responsibility to make sure that they not only advertise a brand but also transparently communicate the truth behind what these brands say. Such an action of commitment to honesty encourages accountability, and fosters trust from both the audience and the brand that they promote.
4. SETTING UP SUPERVISORY AUTHORITY
The Central Consumer Protection Authority in India protects consumer rights. However, there is no specific authority to address issues where consumer protection and environmental concerns overlap. The National Green Tribunal handles environmental issues, while consumer complaints are managed by the Consumer Redressal Forum. A collaborative platform is required for these purposes. Members of both authorities should, therefore, come together and form a system that fights against all illegal business practices that damage the environment. This will make sure that strict enforcement can be carried out effectively.
5. STRENGTHING THE LAWS
Reinforced regulations through legislation of existing ones will ensure brands are brought under the law because of their lies. There is a need to draft legislation clearly and specify which emissions are unacceptable. Any deviant establishment should incur heavy penalties, fines, and the suspension of guilty parties’ licenses temporarily.
CONCLUSION
The battle against greenwashing, which subtly contributes to environmental harm, requires close collaboration among consumers, the government, and NGOs to counter the deceptive practices of unscrupulous brands effectively.
A tremendous sense of responsibility is emerging, both for the consumer and for the companies involved, as this global movement toward sustainability continues to build momentum. The consumer is asked to be more proactive in demanding transparency, challenging the practices and claims of brands they support, and holding those brands accountable for their environmental footprint. On the other hand, companies must look beyond marketing talk; they must ensure their products contribute positively to protecting our earth’s ecosystems. Authenticity and responsibility are critical commitments. This will happen only when the consumers and companies come forward together, make well-informed choices, and work towards a future where green products are not a temporary trend but are something with which we live.
[1]https://greenwash.com/brands/loreal/ (Report as published by greenwash.com)
[2]https://www.bbc.com/news/business-34324772 (Volkswagen_ Scandal)
[3]https://greenwash.com/brands/coca-cola/
[4]https://greenwash.com/brands/mcdonalds/
[5]https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2023%3A0166%3AFIN
[6]ibid
[7] SEE CCPA/28/2023-CCPA notification on Draft Guidelines for Prevention and Regulation of Greenwashing/ Department of Consumer affairs. Available at:https://consumeraffairs.nic.in (Accessed at 15 August 2024)
[8]ibid
[9]https://pib.gov.in/PressReleasePage.aspx?PRID=2064963#:~:text=The%20Central%20Consumer%20Protection%20Authority,ensuring%20transparency%20and%20accuracy%20in
[10]Guidelines for Prevention and Regulation of Greenwashing/ Department of Consumer affairs. Annexure-A Available at: https://consumeraffairs.nic.in (Accessed at 15 August 2024)
[11] Greenpeace. (2021). Campaigns Against Greenwashing
