Greenwashing

Greenwashing

Introduction

In today’s world, where environmental consciousness is on the rise, companies often attempt to capitalize on this trend through deceptive marketing practices known as green washing.

Greenwashing refers to the deceptive practice of making exaggerated or false environmental claims, hiding negative environmental impacts about products or services to mislead consumers. These claims can range from using ambiguous eco-friendly labels to publicizing unsubstantiated environmental benefits.

In India, an increasing awareness of environmental concerns has prompted consumers to scrutinize brands more closely. As the country’s population becomes more environmentally conscious, businesses have also sought to align themselves with green values. However, this shift has given rise to the problem of greenwashing in India, with companies attempting to capitalize on the trend by making false environmental claims. The consequences of greenwashing are intense, not only in terms of consumer trust but also concerning the environment. When consumers make purchasing decisions based on misleading information, it can hamper genuine efforts to address environmental challenges.

Companies employ various tactics to greenwash their products and services. These may include misleading labels, vague eco-friendly claims, or using green imagery on packaging without substantiating their environmental efforts. Such strategies can be effective in deceiving consumers and creating a false perception of environmental responsibility as the products appear environmentally friendly.

Examining real-life cases of the companies which faced allegations of greenwashing in India:

1. HUL Hindustan Unilever Limited (HUL) faced the accusation of greenwashing in India for misleading claims pertaining to environmental and social impact with respect to their products namely Dove, Lifebouy, Surf Excel, and Rin. Further HUL has been denounced by the critics for its "Clean India Campaign" as they focused on using of their cleaning products however failed to refer the main cause of lack of access to clean water or proper infrastructure.

2. Patanjali Ayurved Limited, advertises or claims their products as “natural” and “herbal.” However, in the year 2016, the FSSAI (Food Safety and Standardization Authority of India) prohibited the sale of the company’s amla juice, saying it was “not suitable for human consumption”.

Legal Framework in India

To pause greenwashing, India has established a legal framework governing green marketing. Regulatory body, the Advertising Standards Council of India (ASCI), monitors advertisements for misleading claims. Violators may face penalties, but enforcing these regulations can be challenging and there remains room for improvement in India’s legal approach to greenwashing.

However, identifying and proving greenwashing can be complex, as it often involves evaluating biased claims. This poses a challenge for regulatory authorities and consumers seeking to hold companies accountable. Additionally, the lack of universally accepted definition of greenwashing further complicates efforts to combat this issue effectively.

Consumer Awareness and Activism

Consumers play an important role in combating greenwashing. By becoming more informed and sharp shoppers, individuals can identify greenwashing tactics and make ethically sound purchasing decisions. In the digital age, social media and online activism have also empowered consumers to expose deceptive practices and hold companies accountable for their environmental claims.

Transparency and Accountability

To build and maintain consumer trust, companies must prioritize transparency and accountability in their environmental claims. Genuine efforts to reduce environmental impact should be substantiated with evidence and made accessible to consumers.

Conclusion

In conclusion, the issue of greenwashing trademarks in India is a complex problem that demands attention and action. As consumers become increasingly environmentally conscious, it is imperative that businesses uphold ethical and truthful marketing practices. The consequences of greenwashing extend beyond profit margins, affective consumer trust and the environment. By fostering transparency, encouraging consumer awareness, and refining regulatory measures, India can take significant steps towards mitigating the problem of greenwashing and fostering a more sustainable marketplace. It is a collective effort involving consumers, businesses, and regulatory bodies that will pave the way for a greener and more honest future.

Disclaimer: This article was first published in the S&A Law Offices - 'Intellectual Property (IP-Tech)' newsletter in July 2024.