CCPA Issues Guidelines for Regulation of Greenwashing and Misleading Claims

Syllabus: GS2/ Governance

In News

• The Central Consumer Protection Authority (CCPA) has taken steps to regulate misleading environmental claims by issuing the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024. 

Need 

• These guidelines are designed to address the growing issue of “greenwashing,” where companies falsely claim or exaggerate the environmental benefits of their products, misleading consumers and diverting attention from genuine environmental efforts.

Key highlights of the guidelines are

• Clear Definitions: The guidelines provide definitions for terms such as environmental claims and greenwashing.
  • Greenwashing refers to any deceptive or misleading practice, such as concealing, omitting, or exaggerating environmental claims. It also includes the use of symbols or imagery that emphasize positive environmental aspects while downplaying or concealing negative or harmful attributes.
• Application: These guidelines apply to all environmental claims made in the marketplace.
• Substantiation and Disclosure: Companies must substantiate their environmental claims with credible evidence and detailed disclosures, including methodology and data supporting the claims.
  • Terms such as sustainable, natural, organic, and regenerative cannot be used without proper qualifiers or adequate substantiation.
• Third-Party Certifications: The guidelines accept statutory or independent third-party certifications to verify environmental claims like compostable, degradable, or recyclable.
• Transparency Requirements: Companies are required to provide clear and accessible disclosures about the environmental claims they make. The claims should specify what aspect they refer to (e.g., product, manufacturing process, or packaging) and be supported by reliable scientific evidence or certifications.

Source: PIB