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APEC Project Database

Project Title

Public-Private Dialogue (PPD) on substantiating environmental claims in advertising to increase consumer confidence and improve competition

Project Year

2023

Project Number

CTI_203_2023T

Project Session

Session 2

Project Type

Standard

Project Status

Completed Project

Project No.

CTI_203_2023T

Project Title

*
Public-Private Dialogue (PPD) on substantiating environmental claims in advertising to increase consumer confidence and improve competition

Project Status

Completed Project

Fund Account

*
TILF Special Account

Sub-fund

None

Project Year

2023

Project Session

*
Session 2

APEC Funding

83,998

Co-funding Amount

21,000

Total Project Value

104,998

Sponsoring Forum

*
Committee on Trade and Investment (CTI)

Topics

Trade Facilitation; Environment; Competition Policy

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru

Co-Sponsoring Economies

Australia; Canada; Chile; China; Korea; Malaysia; Philippines; Chinese Taipei; Thailand

Expected Start Date

01/01/2024

Expected Completion Date

30/06/2025

Project Proponent Name 1

Abelardo ARAMAYO

Job Title 1

PO

Organization 1

INDECOPI

Telephone 1

+51 224 7777 (ext. 2500)

Email 1

Project Proponent Name 2

Rosa Giles

Job Title 2

Legal Officer

Organization 2

INDECOPI

Telephone 2

Not Applicable

Email 2

Declaration

Abelardo ARAMAYO

Project Summary

Greenwashing is an increasingly important issue that impacts on the climate agenda and attracts more attention from policy makers and specialists in competition, advertising and consumer protection. In that context, the PPD looks to address the challenges faced by APEC economies on green advertising as a competition tool and thus propose advertising standards for the benefit of the environment, consumers and industry, as part of APEC Putrajaya Vision 2040. The Project includes a PPD and a Best Practices Guidelines on Substantiating Environmental Claims. The PPD will be held on the margins of SOM3 2024 in Peru with specialists in competition, advertising and consumer protection, as well as professionals on the environmental field, from the public and private sector who are in charge of the design of public policies, the application of regulations and the execution of initiatives related to substantiating environmental claims.

List of all project outputs

1.  One day Public-Private Dialogue

2.  Project Summary Report

3.  Best Practices Guidelines

Relevance

Benefits to Region: As greenwashing becomes an increasingly important issue that makes an impact on the climate agenda, policymakers and specialists on advertising regulation, and self-regulation join efforts to prevent that practice. We have noticed some main issues related to false environmental claims that impact on APEC Economies:

-Disinformation disseminated by an organization to present an environmentally responsible public image.

-Misleading practices on ads referring some environmental benefits of a product or service without technical support.

-Unfair competition from those business that engage in greenwashing conduct.

-Environmental claims of a company sustained as social responsibility.

-Organic among other claims on food label.

-Sustainability claims without technical or scientific support regarding the alleged reduced impact on the environment, population, or economy.

It has been seen that some advertisers use words like green, sustainable, eco-friendly and organic simply as a marketing ploy, without any deep interrogation over what those terms actually mean. In fact, APEC economies have sanctioned advertisers for the dissemination of advertising without technical support about the benefits in the environment of the product or service.

The European Commission has been addressing these issues through the “Guidance on the Implementation/Application of Directive 2005/29/EC Unfair Commercial Practices.” The United States has been addressing these issues, through its “Guides for the Use of Environmental Marketing Claims”; Final Rule. In addition, the “Environmental claims: A guide for industry and advertisers” has been developed by the Competition Bureau of Canada. Chile has also addressed these issues through the National Consumer Service (SERNAC, for its Spanish acronym) with the “Report on Green Advertising in Written Press Media of National Circulation and Open Television” . The National Institute for the Defense of Free Competition and the Protection of Intellectual Property (Indecopi) of Peru has recently published a “Draft environmental advertising guide”. Additionally, other APEC economies have produced guidelines or issued studies regarding this matter, such as Australia and Singapore. Russia has already put in place amendments to certain legislative acts, regulating eco-friendly goods marketing and organic food labeling. Some international organizations have pronounced themselves, establishing guidelines and recommendations to protect consumers from negative effects of misleading environmental claims. Thus, the Committee on Consumer Policy (CCP) from the OECD has published the report “Environmental Claims” (https://www.oecd.org/sti/consumer/48127506.pdf). Increasing consumer and business non-government organizations have prioritized environmental and sustainability issues as key priorities impacting consumers and businesses.

This Project aims to enhance knowledge on best practices for environmental claims policies; promote the research on consumer perceptions and behavior, improve consumers’ education on greenwashing and, strengthen cooperation between public and private sector for the development of standards, guidelines, and compliance programs to combat greenwashing.


Eligibility and Fund Priorities: 
This project meets the eligibility criteria for TILF account because it has taken into consideration the priorities listed on Osaka Action Agenda: Standards and conformance, competition policy and deregulation/regulatory review. It looks forward to improving digital connectivity and deepening regional economic integration particularly for a fair competition.

Capacity Building: 
This project builds the capacity of APEC member economies, especially, APEC developing member economies since the PPD and the Best Practices Guidelines, will improve knowledge, capabilities, resources of government officials and representatives from the private sector dealing with issues related to environmental claims from different perspectives. It also contributes to reaffirm that international cooperation improves the creation of a conducive regulatory framework, ramp-up capacity building and creates networks among stakeholders to foster discussion and incubate ideas for better standards on substantiating environmental claims in advertising and thus, increase consumer confidence and improve competition. The project will assist in cross-border cooperation amongst members to address policy, education and enforcement/compliance cooperation to address issues in connection with greenwashing.

Objectives

The objective of this project is to improve leadership and capacity building on members’ agencies overseeing greenwashing. The project will also promote policy coordination/coherence for better practices on environmental advertising and consumer protection. For that purpose, Best Practices Guidelines will be developed to promote substantiating environmental claims based on three pillars: consumer’s trust and preference (green advertising as a competition tool), the use of genuine, objective and meaningful statements about the impact of the product or services on the environment and substantiated green advertising (scientific evidence on the reduced impact on the environment, the use of experts and Certified Trademarks).

Alignment

APEC: This project seeks to continue the work undertaken under the APEC Putrajaya Vision 2040 to “promote economic policies, cooperation and growth which support global efforts to comprehensively address all environmental challenges, including climate change, extreme weather and natural disasters, for a sustainable planet” and also actions the Collective Action under the Aotearoa Plan of Action, that calls on members to “promote good regulatory practices and regulatory cooperation”; It is also aligned with the 2022 Bangkok Goals on Bio-Circular-Green (BCG) Economy; 2017 AMM Ministers’ instruction to “continue working on aligning advertising standards” (2017/AMM/JMS); and with the 2016 Leader’s Declaration to: “remain committed to the implementation of the 2030 Agenda for Sustainable Development as it represents a balanced and comprehensive multilateral framework for international cooperation” and “the important role of mutually-reinforcing policies to buttress our efforts to achieve strong, sustainable, balanced and inclusive growth”. (2016/AELM/DEC).

It will also continue with the path stablished in APEC Internet and Digital Economy Roadmap (2017/CSOM/006), since the project will “facilitate technological and policy exchanges among member economies and to promote innovative, inclusive and sustainable growth, as well as to bridge digital divide in the APEC region” The PPD seeks to reach APEC members sustainability objectives And increase the understanding and knowledge of APEC economies regarding the regulatory, self-regulation, best practices, and compliance programs on environmental claims. With increased trade amongst APEC members there is a need to ensure that members are aware of the different regulatory practices amongst members to address greenwashing conduct.

Forum: The project is aligned with the following CTI’s priorities: (i) Trade Facilitation, Connectivity, Digitalisation, and Innovation, and (ii) Inclusion and Sustainability. Also, this project is aligned with CTI’s previous work regarding the work plan on implementing the 2014 "APEC Action Agenda on Advertising Standards & Practice Development" which was endorsed by Leaders (2014/AMM/012app13); and the Principles for the Government’s role in promoting effective advertising standards (2015/AMM/015app04). On the other hand, the project is aligned with one of the CPLG priorities: “Digital Transformation and Trade Competition” that is related to the EAASR pillar: “Harnessing innovation, new technology, and skills development to boost productivity and digitalization.”

Beneficiaries and Outputs

Outputs

1. Public-Private Dialogue

1. Sustainability policies and regulations applicable to environmental claims This session should focus on explaining the various sustainability policies and regulations related to environmental claims, both at international and national levels. It should emphasize the importance of adhering to these regulations to ensure accurate and transparent communication of environmental efforts, encompassing topics like standards, national regulations, and Green Guides, for example.

2. Oversight of environmental claims and enforcement

This session will look at the mechanisms for overseeing environmental claims, including the role of regulatory bodies, monitoring processes, and compliance verification. It should delve into how enforcement is carried out to ensure that companies adhere to regulations, potentially discussing case studies of regulatory actions and their outcomes.

3. Sanctions in unfair competition Cases through the dissemination of environmental claims through advertising

This session should focus on the legal consequences that companies might face in cases of unfair competition arising from misleading environmental claims in advertising. It could cover examples of legal actions, discussing the potential sanctions, fines, and reputational damage that can result from deceptive practices.

4. Good practices for better environmental advertising

This session will help identify best practices for crafting responsible and effective environmental advertisements. It should cover strategies like using clear and specific language, emphasizing evidence-based claims, highlighting third-party certifications, and providing transparent disclosure. Real-life examples of successful campaigns can be used to illustrate these practices.

Selected speakers from the private and public sectors are expected to make a presentation of their economy'sperspective, depending on the session they will cover. It is recommended to use real cases resolved in their economies to give a practical insight onthe topic.

5.Dialogue discussion

The dialogue discussion should provide a platform for delegates from the private and public sector to engage actively with the content covered in the previous sessions. It's an opportunity for attendees to ask questions, share insights, and participate in practical exercises, such as discussions of case studies in order to identify greenwashing tactics, application of lessons learned and brain storm recommendations related to environmental claims, in order to enhance the credibility of such claims in the industry.

2. Best Practice Guideline

After the event: A Best Practices Guidelines will be delivered to promote substantiating environmental claims in order to increase consumer confidence and improve competition.

The main conclusions and recommendations from the workshop discussion will be included. The document will be an APEC Publication and will have 12 pages minimum.

3. Project Summary Report

A Project Summary Report (3-5 pages) will be circulated to CTI members for their information and uploaded to the MDB for future reference. The Summary Report aims to present an overview of all the presentations covered in all the sessions of the PPD, as well as comments raised by delegates, which are not necessarily included in the Best Practices Document. In this regard, it is necessary to elaborate the mentioned report.

Outcomes
  1. Improve the understanding of participants on green advertising and its impact in trade flows, economic growth, and sustainability.
  2. Strengthen the capacity of policymakers in the design and implementation of competition and green policies for better advertising practices.
  3. Improve the skills of participants on the resolution of competition cases related to greenwashing.
  4. Strengthen capacity of participants by exchanging experiences and best practices on the supervision of green advertising practices applied in APEC member economies.
  5. Increased capacity amongst female participants to develop best practices on competition policies related to environmental claims

Beneficiaries

a. Primary Beneficiaries:
-Representatives from the public sector, including policy makers, especially those whose work is related to the design, development, implementation and enforcement of public policies on environmental claims. These officials may be better informed and empowered to share lessons learned at the PPD with other Policymakers throughout their own public agencies, thus expanding the scope of beneficiaries. Regulatory bodies, whose work is related to environmental matters will also be part of the beneficiaries as they can implement the lessons learned in the work they carry out on this field.
-Representatives from the private sector whose work is related to the development of self-regulation in advertising, best practices, and compliance programs in environmental claims.
b. Secondary Beneficiaries:
- Researchers, particularly whose focus is on creating a better pathway to sustainability and aims to transform the whole of society to make it more balanced and sustainable.
- Consumers. The results obtained from this project will improve consumer’ confidence as final receptors of advertising.
- Entrepreneurs’ advertising activity. To change their commercial practices for better dissemination of advertising with technical support about the benefits in the environment of the product or service, to prevent greenwashing. To assist those businesses that have already implemented good practices in relation to environmental and sustainability claims from being subject to unfair competitive practices.
- Women. It is expected that the PPD will contribute to generate opportunities for women’s economic empowerment and contribute to bridging the digital divide affecting gender equality, considering the issues on delivering responsible advertising, issues to be address in the PPD.


Dissemination

The Project Overseer will present the results of the PPD at CTI 3 2024.
The Project Summary Report will be circulated to CTI members for their information and uploaded to the MDB for future reference.
The Best Practices document will be published on the APEC website, after being endorsed by CTI. Also, this document will be uploaded to the National Institute for the Defense of Free Competition and the Protection of Intellectual Property of Peru (INDECOPI) in its Spanish version.

Gender

Female Participants: 40%
Female Speakers/Experts: 30%

The PO will encourage a higher participation rate of women from public and private sector as participants and speakers. It is expected that the number of female participants will represent around 40% of all attendees and 30% of speakers. The PO’s team will also be integrated by an important number of female officers. The PO is also committed to collect sex-disaggregated data for all (funded and self-funded) speakers and participants. This data will be included as part of the submission of the Completion Report to the Secretariat when the project completes and will serve to guide future POs on their own gender equality targets.

The project outcomes and the project objective benefit women since it aims to improve women entrepreneurs and government officials’ leadership on competition policies and advertising for strengthening their economic competitiveness.

Five Pillars of the Gender Criteria:
  1. Skills, Capacity Building, and Health
  2. Leadership, Voice and Agency
  3. Innovation and Technology


Work Plan

Please refer to Project Proposal posted in 'Project Proposal' of Supporting Documents Tab.

Risks

Please refer to Project Proposal posted in 'Project Proposal' of Supporting Documents Tab.

Monitoring and Evaluation

Please refer to Project Proposal posted in 'Project Proposal' of Supporting Documents Tab.

Linkages

Please refer to Project Proposal posted in 'Project Proposal' of Supporting Documents Tab.

Sustainability

The project continues with the efforts executed in the Public-Private Dialogue (PPD) on Advertising Standards in the Digital Economy (CTI 05 2019T), in the “APEC Advertising Standards Conference: From Principles to Implementation” (CTI 05 2017S) and in the “APEC Seminar on Sharing Good Practices and Experiences on Advertising Self-Regulation among APEC Economies” (CTI 01 2016S). As it continues the work related to advertising standards, but it does not duplicate them as it focuses on environmental claims.

The invitation to attend the PPD will be circulated among CTI and CPLG members as well as other organizations that have been doing important work on this topic like the International Consumer Protection and Enforcement Network (ICPEN). The Best Practices Guidelines will be also circulated among them to receive their feedback/comments and endorsement.

Direct Labour

Please refer to Project Proposal posted in 'Project Proposal' of Supporting Documents Tab.

Are there any supporting document attached?

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Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
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Content Type: Standard Proposal