ASCI Intensifies Crackdown on Greenwashing in India’s Advertising Industry

The Advertising Standards Council of India (ASCI) has ramped up its efforts to combat greenwashing, following a significant rise in misleading environmental claims. A recent study revealed that 79% of sustainability claims made in advertisements were either exaggerated or unverified, leading to growing consumer concern over misleading marketing practices.

Key Developments

ASCI’s intensified crackdown on greenwashing focuses on misleading claims made by businesses in the environmental sector. Key actions include:

• High Violation Rates: ASCI found that 79% of green claims made by organizations were deemed misleading or exaggerated.
• Targeted Terms: ASCI is particularly focused on unverified terms such as “eco-friendly,” “natural,” “biodegradable,” and “chemical-free,” which have become common in advertisements without proper verification.
• Regulatory Framework: On February 15, 2024, ASCI released specific guidelines for advertisements making environmental claims, providing clear instructions for brands to follow when making sustainability statements.
• Call for Evidence: Advertisers are now required to provide scientific proof to back up their environmental claims, ensuring only genuine sustainability efforts are marketed.
• Impact on Consumers: A YouGov study indicated that 71% of Indian consumers have encountered greenwashing, with 60% expressing concern over misleading environmental claims in advertising.

Industry & Expert Context

Greenwashing is not just a marketing issue—it’s a growing concern that can affect a brand’s credibility. Influencer marketing has contributed significantly to the spread of greenwashing, especially in industries like personal care, where 56% of violations have been linked to influencers.

According to Digilogy, a digital marketing agency tracking industry trends, brands that fail to comply with ASCI’s greenwashing guidelines risk severe legal consequences. The Central Consumer Protection Authority (CCPA) has stated that penalties for greenwashing could reach up to ₹5 million, along with potential imprisonment for repeat offenders.

Moreover, greenwashing goes beyond the cosmetic sector and impacts several industries, from FMCG to energy. The energy sector has the highest reported instances of greenwashing, with over 50% of companies in the NIFTY 50 index engaging in misleading environmental claims.

Why This Matters

For consumers, greenwashing undermines trust in brands that claim to be environmentally responsible. In India, where 71% of consumers are actively looking for sustainability in brands, misleading claims can erode customer loyalty and negatively impact the overall shopping experience.

For businesses, adopting honest sustainability practices and providing transparent evidence of their environmental efforts is crucial to maintaining credibility. The evolving consumer awareness about greenwashing is forcing brands to be more accountable.

Additionally, regulatory frameworks like those introduced by ASCI aim to level the playing field for brands that are genuinely committed to sustainability, preventing deceptive practices from harming businesses and consumers alike.

What Happens Next

The push for transparency is only going to grow stronger, as more regulations are likely to follow from both ASCI and the CCPA. By 2025, consumer trust will be the most valuable currency in the sustainability marketing space. Brands must prioritize privacy-by-design and ensure clear opt-in consent for data collection to safeguard consumer confidence.

In the coming months, ASCI will likely increase enforcement and monitoring efforts to prevent any form of misleading sustainability claims. As more brands move towards ethical marketing practices, genuine green marketing will become the new standard, with consumers demanding honest and verified claims.

Final Takeaway

ASCI’s crackdown on greenwashing sends a strong message to the advertising industry in India: transparency and authenticity are essential for building trust with consumers. As regulations tighten and consumer awareness grows, brands must embrace sustainability with honesty and provide clear evidence to support their claims. Digilogy continues to monitor developments in this space, providing insights into how businesses can adapt to these evolving marketing standards.