The 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. These Guidelines seek to foster truthful practices where environmental claims are both truthful and meaningful, thus enhancing consumer trust and encouraging sustainable business practices.
Few key Highlights of the guidelines:
- Definition of Environmental claims [section 2(e)]
- Definition of greenwashing [section 2(f)]
- Application of the guidelines [section 3]
- Clear guidelines on Prohibition against engaging in greenwashing or misleading environmental [section 4]
- Substantiation and adequate disclosure clauses [Section 5]
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 Certificationsare also accepted in substantiation of environmental claims.
- Adequate Disclosures: The companies are required to provideclear 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.
