16 October 2024 : PIB Summary For UPSC

1. CCPA Issues Guidelines for ‘Prevention and Regulation of Greenwashing and Misleading Environmental Claims’

(Source – The Hindu, International Edition – Page No. – 4)

Topic: GS2 – Governance

Context

The Central Consumer Protection Authority (CCPA) has issued new guidelines to curb greenwashing and misleading environmental claims by companies. These guidelines aim to promote transparency and accuracy in environmental claims, ensuring they are backed by credible evidence. The move addresses growing consumer awareness of environmental sustainability.

Committee for Recommendations

• Chaired by Smt. Nidhi Khare, with members from academia, industry, and consumer groups.
• Draft Guidelines for public comments were released on February 20, 2024, with input from 27 stakeholders.

What Is Greenwashing?

Greenwashing is the deceptive practice where companies falsely claim or exaggerate the environmental benefits of their products or services. By using vague, unsubstantiated terms like “eco-friendly” or “sustainable,” they create a misleading impression of environmental responsibility. This tactic seeks to exploit growing consumer awareness of sustainability, diverting attention from genuine environmental efforts and undermining trust.

Guidelines Highlights

• Specific claims like “natural,” “organic,” and “sustainable” must include qualifiers and reliable scientific evidence.
• Vague terms such as “eco-friendly” and “green” are prohibited without proper substantiation.
• Companies are required to provide clear and accessible disclosures about the environmental aspects of their products or services.
• Third-party certifications are accepted to support claims.
• The guidelines promote transparency and aim to foster consumer trust while encouraging sustainable business practices.

Practice Question:  Discuss the concept of greenwashing and critically analyse its impact on consumer behaviour and environmental sustainability. (150 Words /10 marks)