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On 15 October 2024, the Central Consumer Protection Authority (CCPA) issued its Guidelines for the Prevention and Regulation of Greenwashing and Misleading Environmental Claims (CCPA guidelines). These aim to address and prevent greenwashing, ensuring that environmental claims in advertising are truthful and transparent. The CCPA guidelines apply to all entities involved in advertising or promoting goods or services, including advertisers, product sellers, advertising agencies and service providers.

The issues of misleading advertisements were highlighted recently in the case of , in which the Supreme Court of India emphasised that the manipulative nature of misleading advertisements exploits consumers’ vulnerabilities for commercial gain. Such advertisements, by presenting false claims, lead individuals to make purchasing decisions based on erroneous information. The CCPA has echoed this concern in its past actions, such as its order that Sensodyne withdraw its advertisement in India, falsely claiming that the product was “Recommended by Dentists Worldwide” and the “World’s No. 1 Sensitivity Toothpaste”. The CCPA imposed a penalty of INR1 million (USD11,800) because of Sensodyne’s reliance on endorsements by foreign dentists, contravening Indian advertising regulations.

A recent study by the Advertising Standards Council of India (ASCI) found that 79% of environmental claims made by organisations were misleading or exaggerated, underlining the pervasive nature of greenwashing in the Indian market. Because India had no laws previously that specifically targeted greenwashing, the ASCI released its Guidelines for Advertisements Making Environmental/Green Claims (ASCI guidelines) on 15 February 2024 to promote truthfulness in environmental advertising. Five days later, the CCPA released its own guidelines for public comment, incorporating provisions similar to the ASCI guidelines but with additional requirements.

Unlike their ASCI equivalents, the CCPA guidelines do not allow the cherry-picking of favourable observations and research findings to support environmental claims. They mandate the disclosure of both favourable and unfavourable results. Furthermore, the CCPA guidelines require that advertisements use consumer-friendly language to explain technical terms and that environmental claims are clear and accessible and do not contradict themselves.

The CCPA guidelines define greenwashing as any deceptive practice involving the concealment, omission or misrepresentation of information regarding environmental claims. This includes using vague, exaggerated, or unsubstantiated statements, as well as misleading symbols or visuals. The CCPA guidelines define environmental claims as any statements suggesting that a product or service is environmentally friendly. These cover assertions in areas such as production, packaging, usage, disposal or environmental impact. Such claims may suggest that a product is sustainable, causes less harm or has specific environmental benefits, positioning it as eco-friendly.

The guidelines strictly regulate the usage of generic terms such as “environmentally friendly”, “green”, “clean”, “cruelty-free” and “carbon-neutral” by advertisers and require that such claims be supported by accurate and proven information. Advertisers have to make material information accessible in the advertisement itself or through digital channels such as QR codes and URLs. The CCPA guidelines were issued under section 18(2)(l) of the Consumer Protection Act, 2019 (CPA). The provisions of this act will apply to any contravention of the CCPA guidelines, meaning non-compliance with the CCPA guidelines is punishable under the CPA, with maximum penalties of two years imprisonment and fines of up to INR1 million.

The publication of the CCPA guidelines reflected an increased focus on regulatory and legal reaction to greenwashing. These guidelines encourage corporations to align their environmental claims with regulatory standards. This will enhance consumer trust and promote sustainable business practices. Compliance with these norms should boost consumer confidence, attract investment and provide a competitive edge for businesses that are conscious of environmental, social and governance principles.

Ashima Obhan is a senior partner and Jeetika Agarwal is an associate at Obhan & Associates.