Brands must justify 'Green' claims, else get red-flagged: Cos can be penalised for misleading ads as per new norms

Any product claiming to be eco-friendly, green or sustainable will have to disclose the basis of such claims, failing which they will be penalised for misleading advertising and unfair trade practices, according to new guidelines on greenwashing and misleading environmental claims released on Tuesday.

Any deceptive or misleading practices, which include concealing, omitting or hiding relevant information by exaggerating or making vague, false or unsubstantiated environmental claims, come under the ambit of the guidelines, said Nidhi Khare, secretary, ministry of consumer affairs, while releasing the guidelines.

The guidelines will be applicable to manufacturers, service providers, traders, advertising agencies and endorsers.
The guidelines do not seek to prohibit companies from making environmental claims, she said, but to ensure that such claims are made with integrity and transparency, Khare said.


Companies making claims such as "good for the planet", "100% eco-friendly", "zero emissions" and "less plastic" will have to substantiate them either on the pack or by providing pamphlets, quick response (QR) codes or web addresses. Claims such as "natural", "organic", "sustainable" and "cruelty-free" will also have to be substantiated, according to the guidelines.

The guidelines allow companies to make such claims for any goods either in their entirety or for specific components, the manufacturing process, packaging or the manner of use of the goods or their disposal, but with proper substantiation. Service providers can also make such claims for the process of providing that service.

However, the guidelines are not applicable to the mission statement of a company, Khare said.

"Consumers are increasingly making choices based on green claims in advertisements. It is important that such claims be reliable and verifiable," said Manisha Kapoor, CEO and secretary-general, ASCI.