Brands must justify green claims or risk penalties under new ad norms

New guidelines released by the Ministry of Consumer Affairs state that brands making eco-friendly, green, or sustainable claims must now disclose the basis of such claims. Failure to do so will result in penalties for misleading advertising and unfair trade practices.

Nidhi Khare, secretary of the Ministry, emphasised that deceptive tactics, such as exaggerating or providing vague and unsubstantiated environmental claims, will also face scrutiny. These guidelines aim to combat greenwashing, ensuring transparency and accuracy in environmental marketing claims.

Under new guidelines, companies claiming products are "eco-friendly," "zero emissions," or similar must back these claims with substantiation. Brands can offer proof on packaging or via QR codes, pamphlets, or web addresses. Terms like "natural," "organic," and "sustainable" also require evidence. Companies may make such claims for entire products, specific components, packaging, or processes, as long as they provide proper validation. Service providers must also follow these rules when making environmental claims, ensuring transparency across industries.

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

"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.