On 18th January 2023, the Advertising Standards Council of India (“ASCI”) issued the Guidelines for Advertisements Making Environmental/Green Claims (“Green Claims Guidelines”) which are effective from 15th February 2024.
As per the preamble, the Green Claims Guidelines have been issued to do the following:
Key highlights of the Green Claims Guidelines are as follows:
By providing guidelines for environmental/green claims, the ASCI has specifically taken cognizance of green claims and greenwashing by traders and sellers while recognizing that consumers are increasingly taking environmental concerns into consideration while purchasing any good/service.
Since the issue of misinformation is statutorily dealt under the Consumer Protection Act, 2019 (“CPA”, read with the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022), the Department of Consumer Affairs is also taking the initiative of providing guidelines on environmental claims. Notably, the Central Consumer Protection Authority (“CCPA”) had, in February 2024, sought comments from the public and stakeholders on the draft Guidelines for Prevention and Regulation of Greenwashing. Since the CCPA is yet to issue the finalised guidelines, the Green Claims Guidelines by ASCI provide guidance on parameters that should be considered to assess whether the environmental/green claim is true and backed by evidence.
Further, ASCI works closely with the CCPA to protect consumer interests, particularly on the issue of misleading advertisements. As per ASCI’s press release of March 2024, CCPA has requested ASCI to forward any advertisement that is non-compliant with the ASCI Code (and the guidelines) which could also potentially violate the CPA, or any of its guidelines, to CCPA for appropriate action. Accordingly, advertisers must ensure that any advertisement that has green claims is true, can be substantiated, and does not violate the ASCI Code and the Green Claim Guidelines (thereby potentially violating the CPA and the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022). Non-compliance of the same can lead to escalation of the complaint by the ASCI to the CCPA for action under the CPA.
This article was first published on Saikrishna & Associates