Lok Sabha Question No. 3752 (UNSTARRED), answered on 2024-12-18
Subject: Greenwashing Practices in Industries
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Sribharat Mathukumilli

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA

## UNSTARRED QUESTION NO. 3752

TO BE ANSWERED ON 18.12.2024

## GREENWASHING PRACTICES IN INDUSTRIES

## 3752.  SHRI SRIBHARAT MATHUKUMILLI:

## Will  the  Minister  of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the  details  of  corporations,  industries  and  companies  in  India  that  have  committed  to  achieve  net zero emissions along with their specific timelines and targets;
- (b) whether the Ministry has identified any instances of companies or industries engaged in misleading or inaccurate advertising practices that portray them as environmentally or climate friendly and if so, the details thereof;
- (c) the  measures  taken  by  the  Ministry  to  address  greenwashing  practices  in  industries  to  safeguard consumer interests and ensure transparency;
- (d) whether the Government proposes that corporations claiming net zero goals should report on shortterm achievements as part of their progress towards net zero; and
- (e) the  details  of  incentives  provided  by  the  Government  to  corporations  that  are  manufacturing sustainable or eco-friendly products?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h (श्री बी.एल. वर्मा )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L.VERMA)

(a) to (e) : Department  of  Consumer  Affairs  is  continuously  working  for  consumer  protection  and empowerment  of  consumers  by  enactment  of  progressive  legislations.  With  a  view  to  modernize  the framework governing the consumer protection in the new era of globalization, technologies, e-commerce markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted.

Section 2(28) of the Consumer Protection Act, 2019 defines 'misleading advertisement' in relation to any product or service, as an advertisement, which- (i) falsely describes such product or service; or (ii) gives  a  false  guarantee  to,  or  is  likely  to  mislead  the  consumers  as  to  the  nature,  substance,  quantity  or quality of such product or service; or (iii) conveys an express or implied representation which, if made by the  manufacturer  or  seller  or  service  provider  thereof,  would  constitute  an  unfair  trade  practice;  or  (iv) deliberately conceals important information.

Under  the  provisions  of  the  Consumer  Protection  Act,  2019,  the  Central  Consumer  Protection Authority (CCPA), an executive agency, came into existence on 24.07.2020. It is designed to intervene, to prevent consumer detriment arising from unfair trade practices and to initiate class action(s), including the enforcement of recalls, refunds and return of products. Its core mandate is to prevent and regulate false or misleading advertisements which are prejudicial to the public interest.

The  CCPA  has  notified  the 'Guidelines for  Prevention  of  Misleading  Advertisements  and Endorsements for Misleading Advertisements, 2022' on 9th June, 2022. These guidelines inter-alia provide for; (a) conditions for an advertisement to be non-misleading and valid; (b) certain stipulations in respect of bait  advertisements  and  free  claim  advertisements;  and,  (c)  duties  of  manufacturer,  service  provider, advertiser and advertising agency. According to these guidelines, endorser includes an individual or a group or an institution making endorsement of any goods, product or service in an advertisement whose opinion, belief,  finding  or  experience  being  the  message  which  such  advertisement  appears  to  reflect.  These guidelines states that due diligence is required for endorsement of advertisements such that any endorsement in  an  advertisement  must  reflect  the  genuine,  reasonably  current  opinion  of  the  individual,  group  or organisation making such representation and must be based on adequate information about, or experience with, the identified goods, product or service and must not otherwise be deceptive. It clarifies that where, Indian professionals, whether resident in India or otherwise, are barred under any law for the time being in force  from  making  endorsement  in  any  advertisement  pertaining  to  any  profession,  then,  foreigner professionals of such profession shall also be not permitted to make endorsement in such advertisement.

The CCPA has published 'Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024' on 15th October, 2024 to prevent greenwashing and misleading environmental  claims,  ensuring  transparency  and  accuracy  in  advertisements  related  to  environmental sustainability. 'Greenwashing'  or 'misleading environmental claims' is a marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services, often using vague or unsubstantiated terms  such as  'natural,' 'eco-friendly,' or  'green.' This deceptive practice not only misleads well-intentioned consumers but also diverts attention from broader environmental efforts. The primary  goal  of  these  guidelines  is  to  shield  consumers  from  misleading  information  while  promoting genuine environmental responsibility within the business community.

Further  to  strengthen  consumer  protection,  the  CCPA  issued  the  'Guidelines  for  Prevention  and Regulation  of  Dark  Patterns,  2023'  on  30th  November,  2023.  These  guidelines  address  and  regulate  13 specific  dark  patterns  identified  in  the  e-commerce  sector,  aiming  to  prevent  deceptive  practices  that mislead consumers.

Also, the CCPA has issued 'Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024' on 13 th November, 2024 in order to prevent coaching centers from making false or misleading claims/advertisements to promote the sale of goods or service and engage in deceptive or unfair practices.

As  per  Section  21(2)  of  the  Consumer  Protection  Act,  2019,  in  case  of  false  or  misleading advertisement, the CCPA may impose penalty on manufacturer or endorser upto Rs. 10 lakhs and Rs 50 lakhs in case of repeated violations.

Bureau  of  Indian  Standards  (BIS)  introduced  the  framework  on  'Online  Consumer  Reviews  Principles and Requirements for their Collection, Moderation, and Publication' on 23rd November, 2022. This framework safeguards consumer interests by addressing fake and deceptive reviews in e-commerce. While the standards are voluntary, they apply to all online platforms that publish consumer reviews and are guided  by  principles such as integrity, accuracy, privacy, security, transparency, accessibility  and responsiveness.