Context:- The European Union (EU) is taking steps to tackle ‘greenwashing,’ a deceptive marketing tactic used by companies regarding their environmental practices. They’ve approved a new draft regulation aimed at curbing misleading advertisements.
About the Draft Regulation:
Scheduled for implementation in 2026, this law will enforce stringent rules to prohibit ads that falsely label products as ‘environmentally friendly’ or ‘natural.’
Key Points:
- Greenwashing seeks to benefit from the increasing market demand for environmentally friendly products.
- It involves misleadingly presenting a company or its products as environmentally aware or supportive.
- Certain companies have face criticism for engaging in greenwashing to take advantage of the socially responsible or Environmental, Social, and Governance (ESG) investing trend.
- Authentic environmentally friendly products or businesses substantiate their assertions with concrete facts and specific details.
What is Greenwashing?
Greenwashing is the act of making false or misleading statements about the environmental benefits of a product or practice. It involves making unverified claims to deceive consumers into believing that the products have a greater positive impact on the environment than they actually do.
Read Also: European Union
