Jyotsna JayaramPartner
Akshaya Parthasarathy Senior Associate
Pranay JalanAssociate
Key Developments
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Advertising Standards Council of India issues guidelines to curb greenwashing
To curb unclear and false claims regarding products or services being ‘green’ or sustainable that may mislead consumers, the Advertising Standards Council of India (ASCI) has issued the Guidelines for Advertisements Making Environmental/Green Claims (Anti-Greenwashing Guidelines), which came into effect on 15 February 2024.
Environmental/green claims are described broadly as claims appearing in advertisements, marketing material, branding (including trading names), packaging, or any other information provided to consumers, which suggest or create an impression – implicitly or explicitly – that a product, product packaging or service:
- has a neutral or positive impact on the environment,
- is comparably less damaging to the environment than a previous version of the same product or service,
- is less damaging to the environment than competitors, or
- has specific environmental benefits.
In assessing this, all aspects of the claim, including the overall presentation, language, or images used, as well as information that is hidden, will be considered.
Greenwashing is the use of false, deceptive, or misleading environmental claims. For instance, advertisements or branding with absolute claims (like ‘eco-friendly’ or ‘sustainable’) or comparative claims (like ‘greener’ or ‘friendlier’) that are not evidence-based, or aspirational claims about future environmental objectives that are not backed by clear and actionable plans.
Simply put, credible green claims must be fact-based, transparent, and without ambiguous disclaimers. To illustrate, it must be clear if a green claim applies to the whole product or service, only a part of it, or just the packaging. Similarly, any environmental certification used to substantiate a claim should be obtained from reputable, accredited organisations and indicate the attributes evaluated to issue the certification.
In a similar vein, the Central Consumer Protection Authority (CCPA) also published the Draft Guidelines for Prevention and Regulation of Greenwashing (Draft CCPA Guidelines) for public consultation in February 2024. The Draft CCPA Guidelines are similar to the ASCI’s Anti-Greenwashing Guidelines and prohibit all service providers, product sellers, advertisers, advertising agencies, and endorsers from engaging in greenwashing. As consumer demand for sustainability grows, it is imperative for companies to adopt and transparently communicate their green practices and compliance with sustainability standards. This not only aligns with evolving consumer expectations and legal requirements but also reinforces a brand’s commitment to environmental stewardship, fostering trust and loyalty.
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Advisory issued against the advertisement and endorsement of betting and gambling
Taking note of the increasing instances of direct and surrogate advertisements and endorsements of illegal activities, the CCPA issued an advisory on 6 March 2024. This advisory reiterates the ban on advertising prohibited products and services under the Guidelines for Prevention of Misleading Advertisements. The CCPA drew particular attention to the advertisement, and endorsement by celebrities and influencers, of online betting platforms and apps and advised against targeting such advertisements to the Indian audience. The advisory forewarns against stringent action under the Consumer Protection Act, 2019 for all stakeholders involved in the publication of such advertisements, including advertisers, publishers, endorsers, and social media platforms.
Subsequently, the Ministry of Information and Broadcasting (MIB) notified itself as the appropriate agency to be informed about instances of advertisements and branded content of offshore online betting and gambling platforms being published on an intermediary’s platform.
An intermediary would be at risk of losing its safe harbour protection for hosting such advertisements or content on its platform if it does not promptly remove or disable access to such material upon becoming aware or being notified of it by government agencies such as the MIB. The MIB has also strongly advised endorsers and influencers to refrain from participating in such promotional material and required social media intermediaries to conduct sensitisation efforts among their users to refrain from publishing such content.
These developments underscore the government’s proactive stance in regulating the advertising sector. Recent trends also illustrate a collaborative approach between the ASCI and the CCPA/Department of Consumer Affairs. In March 2024, the CCPA acknowledged that an advertisement in violation of the ASCI’s self-regulatory code and associated guidelines may potentially also violate the Consumer Protection Act, 2019, and requested the ASCI to forward such advertisements to the CCPA for appropriate action. Moving forward, we anticipate the results of public consultations on the CCPA’s Draft Guidelines for the Prevention of Misleading Advertisements in Coaching, which could significantly impact the EdTech industry.
