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Source– This post is based on the article “ASCI moots guidelines to check ‘greenwashing’ by companies” published in “Live mint” on 17th November 2023.
Why in the News?
The Advertising Standards Council of India(ASCI) released various guidelines to avoid ‘greenwashing’ by companies.
What is ‘greenwashing’?
It’s a deceitful marketing gimmick used by companies to exaggerate their environmentally friendly actions. It is intended to mislead consumers who prefer to buy goods and services from environmentally conscious brands.
What is Advertising Council of India?
| What is it? | It is a “voluntary, self-regulatory council” which has been registered as a non-profit company. |
| Aim | It aims to protect consumers from misleading claims made by companies with descriptive trademarks, which may be false and dishonest. |
| Established in | In the year 1985 under Section 25 of the Companies Act, 1956. |
| Composition | 1. The ASCI team consists of a Board of Governors, members of the Consumer Complaints Council and a Secretariat. 2. ASCI has 16 members in its Board of Governors, four each representing the key sectors such as Advertisers, advertising agencies, media etc. |
| Important Function | It invites complaints from consumers against any such unfair and false claims and advertisements; all such complaints are examined independently by the Consumer Complaints Council. |
Note– The proposed guidelines issued directions to companies regarding claiming of their product impact which must be supported with high level of substantiation.
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