ABSTRACT
The green in India is severely affected by the greenwashing in the products. Environmental sustainability is the primary concern, which helps to maintain the moderate temperature, climate and monsoon. Climate change is the main problem arising in all the edges of the world. It is our duty that is bound in our constitution to protect the environment.
The UN and the Government of India had made sustainable goals and laws to preserve the greenery and work hard to achieve it with people’s support. The reflection of the environmental consciousness in the business is the green trademark, helps to make the products eco-friendly.
Now-a-days, consumers buy their products without being aware of its false advertisement over its eco-friendly statements. In law, LET THE BUYER BE AWARE plays a prominent role. Educated people also fall upon its false claims and buy their products. The green trademark paves the way for the increasing rate of greenwashing in the corporate sector.
The Doctrinal Research paper addresses the increase of green trademark and its reasons, Loopholes in the implementation of green trademark protection law and human carelessness in the protection of green products and the possible ways to reduce the greensheen in the environment.
Keywords: Green, Eco-friendly, Sheen, Buyer, Environment, Green trademark.
INTRODUCTION
Green trademark happened due to the Urbanization of the Nation. Due to Urbanization, our country is growing. But we also think about “where is green India?” In a developing society, nobody cared about the environment. The people believe the false claims of green-friendly products published in the advertisements. Now, the people are being educated and are aware of their daily products. So, the people remind us that “If we buy a green sheen product, it harms the life of a bunch of trees.”
We are citizens of India; we should have the responsibility to preserve our environment that is bound in our constitution. If we are thinking about green trademarks, it improves the eco-friendly system. The consumers adopt these products as it was made for the harm-free natural system. Now-a-days, it has been transformed into the system of green sheen in the competitive market and it greatly hampers the sustainable goals over the natural environment.
As of now, the companies utilize greenwashing and make it a normal product processing method to make environmental claims in their marketing products. Consumer and environment systems are greatly affected by green sheen. The misleading marketing strategy leads to the greenhouse effect, global warming, and degradation of ecosystems.
Greensheen and Green Blushing become the two sides of the same coin. As per law, the consumer become aware of environmental issues, environmentally friendly claims and demanding more transparency and efficiency in the corporate green products.
Review of Literature:
- 48 Chen Y S, Lin CL, Chang CH, The influence of greenwash on green word-of-mouth (green WOM): the mediation effects of green perceived quality and green satisfaction, 2411-2425 (Qual Quantity journal, SpringLer Publication): The journal encompasses textual arguments that list ecological benefits of a products to create a deceptive environmental claim. It defines the nature of greenwashing and its occurrence at the corporate level (misleading or deceptive in regard to the environmental practices of an organisation) or at the product or service level. Moreover, perceived greenwashing can have damaging results for organizations, in regard to the consumers product and environmental perceptions, and happiness as well.
- 32 Silviya Todorova, Green Trademarks and Sustainability, 87-97 (National publishing house): The article clarifies that the new generations of consumers are increasingly aware and demand more and more sustainable products that are friendly to the environment and health. The consumer’s demand for green businesses are increasingly tight, it is only beneficial for business firms to be looked at as green brands or to have positive GBIs in the era of sustainable development. The author highlights that eco-labelling is the current trend used by the companies to highlight their commitment to sustainability.
- 5 Y. Abdin, Earthonomics: Balancing between earth and business, 47 (Environmental and Earth law journal): The author has critically analysed and clarified the principle of sustainability for the care of the planet and people. The MNEs had been antagonistic towards environmentalist ideals; their shifts in attitudes have been a result of the combined pressures by movements and regulators, and the disruptive actions from within the corporate field led by exceptionally visionary managers. As a result, they adopted the terms like eco-friendly, eco-mark, green claim in the face of their products in the competitive market.
RESEARCH METHODOLOGY
The paper analyses the qualitative data and of descriptive nature. The research is based on secondary sources for the deep analysis of the green trademark and greensheen in the environment. Secondary sources such as newspapers, journals and websites are utilized for the research.
The research topic of the article reflects the modern scope of green trademarks in the nation. The information is collected as relevant to the research topic from the literature, published books and research articles. The additional information was gathered from the internet sources. The research greatly utilizes the logical deductive method to make concise information. The collective information will result as a collective knowledge helps to make more suggestions and initiatives towards the green trademark in the market.
GREEN TRADEMARK
Green trademark is the trademark which portrays the eco-friendly steps of the business.
The green is the representation of nature and helps to attract the consumer which shows the products as less harmful to the environment and its ecosystems in the society.
The United Nations (Climate Change) defines, “Greenwashing is an obstacle to climate change, by misleading the people to believe that a company or other entity is doing more to protect the environment.”
INTERNATIONAL FRAMEWORK
The UN Secretary-General quoted that “We must have zero tolerance for net-zero greenwashing.” It is possible only when the countries have serious concerns over their sustainability goals to preserve the green environment. The countries frame their own rules and regulations in order to restrict the greensheen products spread across the global market.
In this 21st century, the corporate firms gained its importance and caused ineffectiveness over its regulatory policies.
United States:
The Federal Trade Commission (FTC) has issued a green guide which provides guidelines for the environmental market claims. The companies must adhere to the guidelines in their advertisement upon the green claims over their products. It also prohibits the fraudulent usage of the terms like “eco-friendly” and “greenery” in the corporate firms.
European Union:
The EU has drafted and enforces the directives and schemes for the regulation of green trademarks. The regulations made environmental claims as specific as well as verifiable in the global market.
Green Claims Directive:
The directive ensures the trustworthy, comparable, verifiable and green transition of the items purchased by the corporate customers. It is part of the empowering consumer directive issued by the European Commission. The minimal essential for the substantiation and communication of the voluntary natural claim as well as labels used in the products are put-forth by the articles of the directive.
Environmental labelling scheme prohibits the self-certification over the nature based products. The information about the ownership, decision-making bodies, labelling scheme and procedure must be transparent, understandable and described in the view of the general public. Companies apply for the environmental labels to the official authority, verifying its sustainability over the ecosystem in the natural environment. It is the way to safeguard and improve the quality of the eco-labels.
United Kingdom:
The government of the UK governs business-to-consumer advertising and marketing through Consumer Protection from Unfair Trading Regulation. The fifth and sixth regulation prohibits the false material information regarding the commercial products. The ASA (Advertising Standards Authority) in the United Kingdom has issued guidelines for advertising the green claims over their products. The Committee of Advertising practice has published the guidelines for the advertising the claims of carbon neutral over their products.
The Guidance on Making Environmental Claims on Good and Services of 2021 laid down the six principles which help to make the sustainability claims such as it must be truthful, accurate, unambiguous, fair and meaningful. The CAP and BCAP code require a solid evidential proof of green claims and made the company to explicit the environmental claims on the full lifecycle of the advertised product. Therefore, it doesn’t mislead the consumer claims over the green products.
Australia:
An Australian Competition and Consumer Commission (ACCC) and Australian Association of National Advertisers (AANA) draft and enforce the environmental claim code for marketing communication. It also prohibits the misrepresentation in promoting goods and services under the schedule 2 of the Competition and Consumer Act, 2010. The making of false or misleading representations and fraudulent conduct in trade shall be prohibited by the Australian Consumer Law (ACL). It will impose strict liability over the corporate firms and compensate the innocent consumer. The sustainability report consists of a climate statement and its notes, regulations and relevant sustainability standards has been prepared and issued by AAS board in each financial year.
Canada:
The Environmental Claims: A Guide for Industry and Advertisers is a guideline enforced by the Competition Bureau in Canada which made the environmental claims as true, honest and error-free products. The claim will be in specific and clear language, it avoids vague, ambiguous and unclear terms with reference to the nature of the product.
CONSTITUTIONAL FRAMEWORK TO PRESERVE ENVIRONEMNT IN INDIA
The Indian Constitution contains specific provisions for environmental protection under the chapters of Directive Principles of State Policy and Fundamental duties.
Article 48-A and 51-A Clause (g):
In the seventies, the Stockholm conference and increasing awareness of the environmental crisis prompted the Indian government to enact the 42nd amendment in the constitution in 1976. This 42nd amendment added Article 48-A to the Directive Principles of State Policy is the direct provisions for the protection of the environment.
The Article 51-A (g) deals with the fundamental duty of the citizen to protect and improve the natural environment.
LEGISLATIVE FRAMEWORK
The Consumer Protection Act, 2019:
Company will be liable to its misleading advertisement with regard to its green claims in their products. A Statute provides a right to redress against unfair trade practices, indirectly means the greenwashing occurred. The Act consists of the company’s liability as well as buyers liabilities such as LET THE BUYER BE AWARE of purchasing products in the competitive market. It is in adherence with the maxim “law does not help the people who are sleeping over the exercising of their rights.”
The Environment Protection Act, 1986:
The legislative compendium created after the Bhopal gas tragedy, aims to preserve the environment as pollution free as well as sustainable. As per the powers conferred by the act, the Central government shall have laid down the guidelines and safety measures for the handling of hazardous substances. The liability can be imposed upon the companies in case of violation of the environmental related laws. Sometimes, it may lead to a penalty also. These statutes form the backbone of India’s environmental sustainability, indirectly govern and regulate the greensheen of corporate products.
REGULATIONS
SEBI Circulars:
The greenwashing was defined in the circular issued by the Securities Board of India (SEBI) on 3rd February, 2023. The Indian Regulatory Board mandates in the circular that highlights the need for issuers of green debt securities must adhere to the guidelines to avoid the incident of greensheen.
As per the SEBI Circular, the greenwashing is defined as:
“Making false, misleading, unsubstantiated, or otherwise incomplete claims about the sustainability of a product, service, or, business operation.”
The third-party entity provides the certificate over misleading labels, selective data presentation, and false claims are prohibited under the SEBI circular. The standards and procedures are well-established. Therefore, it is a stepping stone that addresses the issues of green washing and provides guidelines for companies to achieve their CSR goals with a sustainable environment.
Bureau of Indian Standards Act, 2016:
The Bureau of Indian Standards draft and implement the standards of products, processes and services in the nation. It establishes an “Eco-mark scheme” which aims to develop the standards for eco-labelling of products and services.
Eco Mark Scheme:
The scheme set-out the standard and criteria for the use of eco-labels and provides guidelines for corporate making environmental claims in their product and its advertisement. It explains the system of eco-labelling and its requirements. As per the provisions of BSI Act of 2016, the list of products such as soaps, detergents, paints and food products are covered under the scheme.
Advertising Standards Council of India:
The statutory regulating body that monitors and regulates advertising practices in India. ASCI have adopted the strict principles and ethical guidelines for the enhancement of truthfulness in the advertisement published by the advertising agencies. The self-regulatory code states that, “Advertisements shall neither distort facts nor mislead the consumer by means of implications or omissions.”
The statement and pictorial representation in the advertisement should not mislead the consumer about its context and greenery claims. In 2017, the Muktha Laboratories pvt. Ltd. made an advertisement of mosquito repellent as a “World’s first non-toxic and eco-friendly” was upheld.
JUDICIAL FRAMEWORK
The overall summary of judgements of green trademark analysis:
The Indian green brands are often granted trademarks when combined with unique and descriptive words. The Delhi High court held that “nature” is a descriptive word that has its conjunction with ‘Inc’ and ‘Essence’ is definite and distinct.
In Natures Essence Private Limited V. Protogreen Retail Solutions Private Limited, the court held that the companies using the name of “nature’s tattva” infringed the trademark “Nature’s Inc” even though they were dealing in different products, although the category of products was the same.
LEGAL LOOPEHOLES
According to the section 135(1) of Companies Act, 2013, the conditions of the Corporate Social Responsibility (CSR) of incorporated companies in India are prescribed. Under the light of this provision, the CSR committee will be constituted. It had the powers to deal with matters of environmental responsibilities of the corporation. The committee had eye over the transactions of the companies with the consumers in the matter of green trademarks. But the powers of the CSR committee are not being effectively utilized in order to tackle the greensheen in India.
The Consumer and environment protection laws did not cover the green claims and green sheen in the areas of business to consumer transactions.
SUGGESTION
As per the provisions of company law, the Green Initiatives such as green claims, etc.., are taken by the Corporate as the part of their corporate social responsibility is of:
- The Company made an initiative of rainwater harvesting, solid waste management and solar energy.
- The Company made a green supply chain, e-waste legislation and the green supply chain.
- The Company issues a program of carbon neutrality and water conservation.
- The Company adopted the eco-friendly materials, green supply chain as well as green products.
CONCLUSION
The Green trademark is the rising star of the world market. Also, greenwashing is an emerging issue that overrules air, water pollution in the rate of environmental degradation. It indirectly affects the ecosystems and the Human life. Now-a-days, the greens are converted into terms of fraud, corporate gain and private profit.
In the green nation, the Climate change is caused by nature, but today it is caused due to human errors. The natural life systems are greatly influenced by human actions and errors. It made nature a human made system. It will revert back to us in the way of global warming, greenhouse gas and drastic change of climate.
The judiciary is a vital mechanism, helping to tackle the greensheen in the products. The justice delivery system made an initiative to encourage and join hands with the NGOs and other organisations to promote the awareness of greensheen and environmental sustainability in the society. We the people of India, made ourselves aware of the governmental laws related to the greenwashing and participated in the green initiatives in order to achieve the sustainability goal of the environment in the world.
Viswa ganesh K
School of excellence in law
Tamilnadu Dr Ambedkar Law University
REFERENCES
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