In recent years we observe a significant increase of companies highlighting the ecological advantages of their products and/or services in the market. However, on many occasions, these environment-related messages are distorted, exaggerated or even false, leading to the practice known as “greenwashing”.
In view of this, on October 18 of this year, INDECOPI published the Environmental Advertising Guide (hereinafter “the Guide”) through which, among others, it seeks to ensure that consumers are adequately informed about the environmental aspects and sustainability of the products and/or services available in the market.
Among other aspects, the Guide recommends into consideration the following criteria when carrying out the so-called “green advertising”:
a) Truthfulness and prior substantiation: Under these principles, all green advertising takingdisseminated must be supported by evidence that has been obtained prior to the dissemination of advertising, in the terms indicated in subsection 8.4 of Article 8 of the Law for the Repression of Unfair Competition.
b) Clarity: The information contained in green advertising must be useful for the consumer. Therefore, among others, advertisers should avoid vague, ambiguous and broad statements about “general environmental/social benefits”; there should be a direct link between the content of green advertising and the product to avoid generalization; the information provided to the consumer should be explicit and easy to understand and should be complemented -if general- with an explanatory statement; and, the excessive use of scientific terms that may confuse consumers should be avoided.
c) Relevance: Advertisers should, among others, highlight product features or innovations that really make a difference to the overall sustainability performance of the product. Likewise, they must corroborate whether there are sectorial regulatory requirements before making a claim, in order to avoid disseminating advertising that contravenes the regulatory system (in this point, the Principle of Legality, established in Article 17 of the Law for the Repression of Unfair Competition, must be taken into account).
d) Transparency: Advertisers should consider that what is not said in a green advertisement may also influence consumers’ decisions. Thus, consumers may be particularly interested in knowing about (i) the provenance and sourcing of materials; (ii) the production processes and practices employed; (iii) the packaging, transportb, use and disposal of the product.
e) Fair comparison: All comparative green advertising should be based on clear, current and objective information.
In this context, the Guide offers guidelines and suggestions to companies that disseminate green advertising, with the aim of promoting fair competition in the market and avoiding possible violations of the Law for the Repression of Unfair Competition. Likewise, it also seeks to prevent advertising practices that may harm consumers by leading them to purchase products or services believing that they are contributing to environmental care, when this is not the case.
Finally, it is important to note that the Guide does not constitute a new regulation nor can it be interpreted as a precedent of obligatory observance, as it only serves as a guideline.
For further information, please contact Ximena Aramburú (xaramburu@estudiorodrigo.com) and/or Daniela Supo (dsupo@estudiorodrigo.com).
