When Italian regulators fined ultra-fast fashion giant Shein €1 million earlier this month for “vague, generic, overly emphatic” sustainability claims, the verdict brought greenwashing into the light among people.
The investigation found that Shein had exaggerated the environmental benefits of its ‘evoluSHEIN by design’ collection. Claims that the products were fully recyclable were false or misleading because of the fibre used and the current recycling systems that they have in place. Regulators also mentioned that Shein’s promises to cut greenhouse gas emissions lacked credibility, as the company’s emissions had actually increased in 2023 and 2024.
The Competition Authority concluded that the brand’s website overstated recyclability and presented misleading environmental credentials, claims that would now fall squarely within the crosshairs of India’s greenwashing guidelines.
“Greenwashing is definitely classified as false marketing under Indian law,” Siddharth Chandrashekhar, Advocate at the Bombay High Court, told financialexpress.com. “The 2024 CCPA guidelines specifically address greenwashing as a form of misleading advertisement that violates consumer protection laws. This represents a significant legal evolution… Greenwashing isn’t just unethical, it’s illegal false marketing with real penalties.”
India has seen its share of high-profile greenwash marketing cases over the past decade. In 2012, the Advertising Standards Council of India (ASCI) fined Godrej Industries Rs 5 lakh for falsely claiming its “Good Knight Fast Card” was 100% natural and chemical-free.
The year before that, Hindustan Unilever Limited was fined Rs 10 lakh by the Ministry of Environment and Forests for promoting Surf Excel Easy Wash as 100% natural and environment-friendly despite containing artificial components.
Voltas Limited, part of the Tata Group, was penalised Rs 50,000 for exaggerating the energy efficiency of its air conditioners, while in 2015, Godrej Consumer Products paid Rs 15 lakh after ASCI found its “Godrej No. 1 Soap” claims of being 100% natural, biodegradable, and eco-friendly to be false.
More recently, Patanjali Ayurveda’s Divya Pharmacy faced the discontinuation of five products and potential fines of up to Rs 1 crore after regulatory authorities found its therapeutic claims violated multiple drug and advertising laws.
India has not been a laggard in recognising greenwashing as a legal offence. Under the Consumer Protection Act, 2019, and the Central Consumer Protection Authority’s (CCPA) Guidelines for Prevention and Regulation of Greenwashing introduced in late 2024, misleading environmental claims are explicitly treated as false advertising.
These penalties are not tokenistic: manufacturers, advertisers, and endorsers can face fines of up to Rs 10 lakh for a first offence, and Rs 50 lakh for repeat violations. “Let’s not forget,” Chandrashekhar added, “that provisions under the Environment Protection Act can also be used if they impact environmental compliance.”
The case is part of a global shift: according to RepRisk data, 2024 marked the first decline in greenwashing cases worldwide in six years, but high-severity incidents rose by over 30%. In other words, companies may be more cautious in their messaging, but the worst offenders are doubling down.
When buzzwords become burden of proof
If the Shein case underscored the risks of vague eco-speak, India’s regulators are now demanding far greater specificity. “Vague terms like ‘eco-friendly’ indeed carry significantly more legal risk today compared to five years ago,” Sonam Chandwani, Managing Partner at KS Legal and Associates, noted. “Courts and authorities now expect clear, verifiable, and specific claims rather than broad, unsubstantiated buzzwords.”
She pointed out that Indian law does not rely on a single statute but uses “a regulatory net” combining the Consumer Protection Act, Legal Metrology Rules, eco-labelling guidelines, and the Advertising Standards Council of India’s code of conduct. “The critical test is whether the green claims induce consumer confusion or mislead a reasonable consumer about the environmental benefits or sustainability of a product or service.”
Brand behaviour in transition
This shift is already altering marketing playbooks. “There is a discernible move from vague eco-speak toward specific, measurable claims: ‘50% recycled packaging,’ ‘carbon-neutral shipping,’ or precise ingredient sourcing,” Yasin Hamidani, Director, Media Care Brand Solutions, said. “Concrete claims backed by third-party verification are becoming the norm, helping brands avoid accusations of greenwashing.”
But Hamidani cautioned that sectors with complex supply chains, fast fashion, personal care, and consumer electronics are still most exposed to greenwashing allegations. “Conversely, beverage, FMCG, and outdoor apparel sectors are adapting more effectively, leveraging certifications, traceable materials, and measurable impact data to substantiate their green claims credibly.”
For Ambika Sharma, Founder and Chief Strategist at Pulp Strategy, the reputational stakes are as high as the legal ones. “Consumers are definitely more skeptical today. They have access to more information, can verify claims quickly, and are quick to call out inconsistencies. That does not mean sustainability messaging has lost its pull—it still works, but only when it is credible, transparent, and backed by proof.”
Lessons from abroad
Shein is hardly alone. Volkswagen’s “clean diesel” scandal, where emissions test-cheating software was installed in millions of vehicles, cost the company $34.69 billion in fines, penalties, and settlements. H&M has faced lawsuits alleging its sustainability claims were misleading. HSBC had ads banned in the UK for promoting climate-friendly initiatives while investing billions in fossil fuels. Coca-Cola, Keurig, and PepsiCo have been taken to court over recyclability claims, while oil majors like TotalEnergies and Shell have faced action for overstating climate commitments.
In each case, the gap between marketing rhetoric and verifiable fact became the flashpoint. “Brands must build a legal and honest paper trail to establish legitimacy: data, methodology, and (ideally) third-party verification before… painting anything green,” Chandrashekhar said.
Will greenwashing disappear from India?
The consensus: it will be harder, but not gone. Chandwani believes the regulatory tightening will deter casual use of eco-buzzwords, but determined offenders will find subtler ways to skirt the rules. Sharma warns that fines alone are not a silver bullet. “For large companies, they are often absorbed as operational costs. The real deterrent is sustained consumer backlash, loss of trust, and regulatory monitoring that impacts market access.”
Hamidani notes that the most effective prevention is proactive transparency: “It’s not just about avoiding penalties, it’s about building trust. In an age of instant fact-checking, credibility is currency.” Whether India’s stricter framework will eliminate greenwashing remains to be seen, but the direction of travel is clear. As Sonam Chandwani cautioned, “Generic terms without proof invite allegations of misleading advertising and greenwashing, increasing both reputational and legal exposure.”