• Regulation demands clear definitions of terms related to environmental claims.
• Companies are required to provide clear and accessible disclosures of material information.

The Central Consumer Protection Authority (CCPA), a regulatory body that protects and enforces the rights of consumers in India, has issued new guidelines to rein in misleading advertisements that could harm consumers and the public.

The guidelines are aimed at preventing greenwashing, a tactic companies use to claim that their products are environmentally friendly when they are actually not.

The purpose of this is to ensure that companies' claims are genuine and meaningful, which will help build trust and encourage them to adopt sustainable practices. The new guidelines also demand transparency and accountability in their operations and prevent advertisements intended to mislead people.

A committee was formed by the Ministry of Consumer Affairs, Food & Public Distribution of India to develop the guidelines, which included members from industry representatives, academia, consumer activities, and legal practitioners.

Businesses should not use terms like ‘natural,’ ‘organic,’ and ‘pure’ on their product labels unless they are clearly defined and substantiated. They can use third-party certifications to support their claims.

The guidelines by the CCPA are an important development in the Indian consumer market, aimed at creating a fair marketplace, ensuring that environmental claims are truthful, and thwarting greenwashing attempts, thereby promoting genuineness in sustainable business practices.

For a detailed view and analysis of the guidelines, click here.

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Source: PIB