What does it mean for a product to be ‘eco-friendly’ or ‘organic’?” These terms, which have long served as powerful marketing hooks, can no longer be used without consequence. With the introduction of guidelines against greenwashing, the Indian government has made it clear: brands will now have to back up their environmental claims with evidence, or risk facing severe penalties.
For businesses, these guidelines mean adapting to a new landscape of accountability. “The government’s guidelines aim to bring accountability. For businesses, this mandates transparency on eco-friendly claims, pushing them to back assertions with credible data and avoid vague terminology,” says Yasin Hamidani, director at Media Care Brand Solutions. He notes that advertising will now shift toward fact-based messaging, requiring firms to rethink their sustainability claims and increase investments in genuine sustainable practices.
Nisha Sampath, managing partner at Bright Angles Consulting, points out that the pressure on brands to be authentic is growing. “If a brand truly aspires to be sustainable, this is a great opportunity to build true and deep roots in sustainability and showcase them to the world,” she says.
Look at the figures: A recent PwC survey shows that 60% of Indian consumers actively choose sustainable products, willing to pay an average of 13.1% more for sustainably sourced goods. However, a study by the Advertising Standards Council of India (ASCI) found that 79% of environmental claims are often exaggerated or misleading. As a result, only 29% of Indian consumers trust sustainability claims, according to YouGov.
Sampath warns that brands looking to piggyback on the sustainability trend will face significant challenges as vigilant consumers and influencers (such as Foodpharmer) increasingly call out false claims.
The need for compliance is also about building consumer trust. With brands now under increased scrutiny, the focus has shifted from making vague statements to providing clear, verifiable data. “Strict don’ts include exaggerating environmental benefits, hiding trade-offs (for instance, recyclable but energy-intensive processes), and using misleading visuals or claims unsupported by science,” Hamidani adds.
The failure to do so will lead to massive fines. Rishi Agrawal, CEO and co-founder of Teamlease Regtech, warns that non-compliance could lead to substantial penalties. “Under the Consumer Protection Act, first-time offenders may face imprisonment of up to two years and fines of up to 10 lakh, with repeat offenders risking fines up to50 lakh and five years of imprisonment,” he says.
In a way, the guidelines also offer opportunities. By adhering to the new standards, brands can differentiate themselves, gain consumer loyalty, and appeal to the growing market of eco-conscious buyers. “Sustainability works when it is part of the brand’s belief and value system;it works when it’s embedded into business plans, supply chain, the ethics and values of how they deal with their vendors, employees and communities. It finally percolates down to how they choose to communicate it to consumers,” adds Sampath, highlighting that transparency can foster long-term growth through authentic, value-based marketing.