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.