Brands required to justify green claims or face penalties

Under new guidelines on greenwashing and misleading environmental claims released on Tuesday, any product that makes claims about being eco-friendly, green, or sustainable will be penalised for unfair trade practices and misleading advertising if they do not disclose the basis for such claims.

“The guidelines cover any deceptive or misleading practices, such as hiding, omitting, or omitting pertinent information by exaggerating or making vague, false, or unsubstantiated environmental claims,” Nidhi Khare, secretary, ministry of consumer affairs, stated during the guidelines’ release.

Manufacturers, service providers, traders, advertising agencies, and endorsers will all be subject to the rules. According to Khare, the standards aim to guarantee that environmental claims are made honestly and openly rather than to forbid businesses from making them.

Businesses that make statements like “less plastic,” “good for the planet,” “100% eco-friendly,” and “zero emissions” will need to provide evidence for them, either on the packaging or through the use of web addresses, QR codes, or booklets.

According to the rules, claims like “natural,” “organic,” “sustainable,” and “cruelty-free” must also be supported. According to the standards, businesses are permitted to make such claims for any product, either in its entirety or for individual parts, the manufacturing process, the packaging, the way the product is used, or how it is disposed of, provided that the claims are properly supported. These kinds of claims can also be made by service providers for the process of rendering that service. However, according to Khare, the rules don’t apply to a company’s mission statement.