Government to Introduce Strict Regulations to Tackle Greenwashing

Companies attempting to project a green image without sufficient proof will soon face stringent oversight. The government is set to release the final regulations on greenwashing – misleading or false claims regarding environmentally friendly practices.

These guidelines will require all manufacturers, businesses, and organizations to provide credible, verifiable evidence for any claims of producing or selling eco-friendly or green products. Violations would result in substantial penalties under the Consumer Protection Act, 2019, which may include fines of up to ₹1 crore or imprisonment.

Companies will no longer be able to use terms such as ‘clean,’ green,’ ‘eco-friendly,’ ‘eco-conscious,’ ‘minimal impact,’ ‘cruelty-free,’ and ‘carbon-neutral’ without proper certification from relevant authorities.

Additionally, companies must display valid certifications for any environmental claims related to carbon offsets, compostability, degradability, non-toxicity, natural composition, ozone safety, and recyclability.

The claims must be made public through various channels, including advertising, packaging, labelling, QR codes, or web links. Verification by government or government-accredited agencies will be mandatory.

The rules will apply across various sectors, including consumer goods, energy (a sector prone to greenwashing), real estate, construction, automotive, and food and agriculture, said the second source.

The draft guidelines were initially released by the Central Consumer Protection Authority (CCPA) in February 21 for public consultation. The finalized rules aim to empower consumers with accurate information about the products they purchase, especially since companies frequently overstate their environmental commitments.

From fashion and food to energy and finance, many businesses increasingly use green labels to attract eco-conscious consumers, often without genuine proof.

As reported by Hindustan-times.com, Anup Garg, Founder and Director of sustainability consulting firm WOCE (World of Circular Economy), praised the proposed rules as laying a robust foundation for transparency in environmental claims made by manufacturers.