Industry lauds Centre norms to curb misleading environmental claims by companies

New Delhi : Industry experts on Monday lauded the Department of Consumer Affairs for releasing new guidelines to curb “greenwashing” or misleading environmental claims by companies.

The growing concern around "greenwashing," where companies exaggerate or falsely advertise the environmental benefits of their products or services, has raised red flags globally.

According to the India Cellular and Electronics Association (ICEA), the ‘Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024’ to ensure transparency and accuracy in advertisements related to environmental sustainability will promote ethical business practices in the country.

"These guidelines strike an excellent balance between protecting consumer interests and enabling businesses to communicate their sustainable practices effectively. This progressive stance sets a new international benchmark, which is a vast improvement over EU regulations which impose rigid restrictions on environmental claims," said Pankaj Mohindroo, Chairman, ICEA.

Vague or unsubstantiated claims often mislead consumers, undermining trust and the positive movement towards environmental responsibility.

The guidelines by the Central Consumer Protection Authority (CCPA) mandate companies to provide credible evidence and transparent disclosures for their environmental claims, thus ensuring that consumers have easy access to the necessary data to make informed decisions.

"The framework, developed after close engagement with the industry, allows companies to showcase genuine environmental innovations while ensuring transparent disclosures. This aligns perfectly with India's sustainability commitments, COP targets, and Prime Minister Narendra Modi’s LiFE Mission,” Mohindroo added.

According to Nidhi Khare, Secretary, Department of Consumer Affairs, by creating an illusion of environmental responsibility, many unscrupulous companies end up exploiting consumers' growing environmental sensitivity.

“This deceptive practice not only misleads well-intentioned consumers but also diverts attention from broader environmental efforts,” Khare added. The guidelines include public suggestions like disclosure of credible certification, and reliable scientific evidence; and on claims such as natural, organic, and pure.