In an era marked by rapidly evolving consumer behavior and competitive tactics, many market practices blur the lines between what is 'legal' and 'ethical,' leaving consumers vulnerable to manipulation. Section 2(1)(r) of the Consumer Protection Act, 2019, identifies several deceptive practices under the umbrella of 'unfair,' broadening the scope of consumer welfare—especially in emerging sectors. From misleading advertisements in greenwashing to digital trickery in dark patterns, these practices challenge not only the spirit of the law but also consumer trust. The urgent need is to design a regulatory landscape grounded in ethics and sustainability to uphold consumer integrity in the future.
The Green Lie in Greenwashing: The Challenge of Misleading Environmental Claims
With increasing headlines about emissions, ozone depletion, and waste management crises, labels like ‘sustainable’ and ‘eco-friendly’ have become synonymous with the ‘conscious consumer.’ However, Jay Westerveld first identified the contradictions between a hotel’s ‘green claims’ and reality, coining the term ‘greenwashing.’ This phenomenon occurs when brands fail to substantiate their environment-friendly claims while potentially contributing to pollution.
Recent guidelines from the Central Consumer Protection Authority (CCPA) emphasize the necessity for adequate disclosures backed by credible proof to combat rising greenwashing practices. A landmark case, FossielVrij NL v. KLM, saw the Amsterdam District Court impose an injunction against KLM AIRLINE for misleading CO2 sustainability claims. Such cases highlight non-compliance with Environmental, Social, and Governance (ESG) commitments under scrutiny by regulatory bodies like the Ministry of Corporate Affairs.
Combatting ‘Dark Patterns’: Protecting Consumer Autonomy Online
In 2023, the Federal Trade Commission (FTC) sued Amazon for allegedly employing ‘dark patterns’ that manipulate customers into making unwanted purchases. Concurrently, India introduced draft guidelines on the Prevention and Regulation of Dark Patterns. These guidelines define design patterns intended to coerce users into buying decisions that undermine consumer autonomy, categorizing them as unfair trade practices under the Consumer Protection Act.
The digital landscape is ever-evolving, necessitating a dynamic legal approach that can adapt to these tactics. Legal frameworks in other jurisdictions have begun recognizing broader definitions that encompass both intention and practice. This distinction is crucial for delineating persuasive advertising from manipulative dark patterns while emphasizing monitoring, enforcement, data protection, and digital literacy.
Addressing Health Washing: Regulatory Gaps in Food Safety Claims
A recent ruling in Mondelez India Foods Pvt. Ltd. & Ors. vs. Mr. Revant Himatsingkacompelled Mondelez to remove its claims of Bournvita as a “health drink” after allegations surfaced regarding misleading health benefits. This case not only underscores regulatory gaps in food safety but also highlights a culture of ‘health washing’—the use of vague or unverified health claims that qualify as unfair trade practices under the Consumer Protection Act.
While agencies like FSSAI (Food Safety and Standards Authority of India) and ASCI (Advertising Standards Council of India) are empowered to address health claims' legitimacy, consumer protection frameworks must also tackle health washing effectively. The upcoming directives from National Consumer Day 2024 aim to enhance regulatory oversight in this area.
National Consumer Day Celebration 2024
The theme for National Consumer Day 2024, observed on December 24, is “Virtual Hearings & Digital Access to Consumer Justice," emphasizes leveraging technology to provide cost-effective, efficient, and inclusive solutions for consumer grievance redressal. Initiatives such as the AI-powered National Consumer Helpline 2.0 and the unified ‘e-Mapp’ portal for legal metrology represent significant strides toward sustainability and digital transformation.
The voluntary Safety Pledge by leading e-commerce platforms aims to ensure greater accountability among businesses. Additionally, the launch of the ‘Jago Grahak Jago’ ecosystem seeks to empower consumers with knowledge and tools to navigate dark patterns effectively. Together, these measures reflect circular economy principles by reducing resource inefficiencies while enhancing transparency and fostering a sustainable consumer-friendly digital ecosystem.
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