Editorial. Green truths – The Hindu BusinessLine
Taking cues from their global counterparts, well-heeled Indian consumers are seeking out products and services that cause less environmental harm and are willing to pay more for it. Businesses are not averse to capitalising on this fad by labelling their perfectly ordinary wares as ‘organic’, ‘natural’, ‘eco-friendly’, ‘green’ or ‘sustainable’ to extract a higher price.
In February 2024, after finding that a majority of advertisements with green claims were vague or misleading, ASCI (Advertising Standards Council of India) came up with guidelines on the do’s and don’ts for them. Now the Central Consumer Protection Authority (CCPA), a statutory body under the Ministry of Consumer Affairs, has sharpened the guidelines to give them greater legal heft. The CCPA guidelines expressly prohibit product sellers, service providers, advertisers, advertising agencies and their endorsers from the practise of ‘greenwashing’. The definition of greenwashing is sweeping. It is defined as any deceptive practise that exaggerates or makes false and misleading environmental claims, conceals, omits or hides relevant information or harmful attributes. Using misleading images too fall under its ambit.
The CCPA imposes several obligations on those making green claims. One, terms such as green, eco-friendly, organic, natural, sustainable, carbon-neutral etc should not be used in a sweeping manner without verifiable evidence. They should be accompanied by qualifiers if any, with independent studies or third-party certification in a QR code or URL which can be accessed by the consumer. This requirement can weed out spurious and vague claims. But it is moot if there are official agencies who can certify all types of green claims and whether consumers are aware of them. Two, anyone making a green claim (such as eco-friendly or non-toxic for instance) should specify whether it applies to the whole product, its manufacturing process, packaging or its use and disposal. This will prevent vendors from making cosmetic changes to slap on a ‘green’ label. A bubble-wrapped product in a cardboard box cannot be labelled bio-degradable. Three, claims such as bio-degradable, recyclable, and so on need to be supported by scientific evidence or third-party verification. Sellers cannot cherry-pick from research studies to support such claims. They need to disclose the entire study.
Most of these provisions seem to be derived from the European Union’s Anti-Greenwashing regulations, after leaving out its more stringent aspects such as revealing the product lifecycle. However, the CCPA’s guidelines are still rather broad in scope, raising questions about their enforceability. The guidelines do not specify any route for consumers to raise complaints. They don’t lay down penalties for violations. India is yet to implement waste segregation even in the major metros and lacks a formal reverse supply chain to recycle products. A basic ecosystem, literally speaking, needs to be in place.
