Ministry of Consumer Affairs Issues New Guidelines to Curb Greenwashing and Misleading Environmental Claims

The Ministry of Consumer Affairs released new guidelines on greenwashing and misleading environmental claims on Tuesday. According to these guidelines, products labelled as eco-friendly, green, or sustainable must provide substantiation for such claims. Failure to do so will result in penalties for misleading advertising and unfair trade practices.

The guidelines apply to manufacturers, service providers, traders, advertising agencies, and endorsers. Companies are not prohibited from making environmental claims, but they must ensure that these statements are backed by transparency and honesty. Claims such as “good for the planet,” “100% eco-friendly,” “zero emissions,” and “less plastic” must be verified through packaging details, pamphlets, QR codes, or websites. Terms like “natural,” “organic,” “sustainable,” and “cruelty-free” also require supporting evidence.

Companies can make claims about entire products, specific components, the manufacturing process, packaging, or usage and disposal, provided they have appropriate evidence. Service providers may also make environmental claims regarding their processes.

However, these guidelines do not apply to a company’s mission statement.