Singapore’s competition watchdog has published new guidance to curb misleading environmental and product claims, a practice known as greenwashing.
The Competition and Consumer Commission of Singapore (CCS) released its guide on Monday, outlining five principles for businesses to follow when making claims about the qualities, uses or benefits of their products. These include ensuring claims are accurate, clear, meaningful, evidence-based and sufficiently substantiated.
“Beyond helping businesses comply with Singapore’s fair trading laws, we hope that this guide will support businesses in making product claims with clarity and confidence while building customer trust,” said CCS chief executive Alvin Koh. “We want to ensure that environmental claims – and all quality-related claims – reflect genuine facts rather than empty promises.”
CCS said it was prompted by concerns over vague or misleading environmental claims, as well as recent enforcement actions against companies found to have misled consumers.
The guidance, which was almost two years in the making, comes 10 months after an advertisement for VietJet was banned for making the unqualified claim that flying with the airline has a lower impact on the environment.
CCS’s ‘quality claims’ guide: key principles
The Competition and Consumer Commission of Singapore’s greenwashing guidelines propose the following principles for businesses to abide by:
1: Claims should be true and accurate
Verify the accuracy of claims before communicating to consumers. Ensure claims do not mislead consumers about why they need the product.
2. Claims should be clear and easily understood
Consider how an average consumer may interpret the claim. Use plain language and avoid technical jargon. Avoid using vague or overly broad statements, or imagery that may mislead consumers.
3. Claims should be meaningful
Focus on material product attributes rather than insignificant, standard or mandatory products. Any comparisons with other products should be fair and substantiated.
4. Claims should be accompanies by material information
Provide sufficient substantiation for any claim made. Present supporting information in an accessible manner as early as possible.
5. Claims should be supported by evidence
Substantiate claims reasonably with credible evidence. Back claims with evidence that is valid, specific and up to date. Any claimed ambitions or goals should be made with the intention to achieve them and are reasonably achievable.
Source: ccs.gov.sg
The most notable case of greenwashing in Singapore to date was a 2023 promotion for a consumer electronics company that claimed consumers could “save Earth” by buying its energy-efficient airconditioners.
The CCS greenwashing guide, which was developed with input from industry and business associations, also features case studies to illustrate how the principles apply in practice.
The watchdog urged consumers to scrutinise marketing claims carefully and seek substantiation or credible reviews before making purchases.
It also encouraged consumers to report false or misleading advertisements to the Consumers Association of Singapore (CASE) or the Advertising Standards Authority of Singapore (ASAS). Only a handful of complaints about greenwashing have been lodged by ASAS.
Greenwashing has become a global concern as more businesses seek to market themselves as sustainable, although regulators in Asia have been relatively slow to tackle questionable green claims.
Australia is seen as the most progressive country in tackling greenwashing in Asia Pacific, with a slew of fines dished out to corporates including airline Qantas, retailer Woolworths and household goods company Clorox over the last 18 months.
Last week, Australia’s finance regulator took legal action against Fiducian Investment Management Services for greenwashing its environmental, social and governance (ESG) fund.
Cases of greenwashing have declined globally over the last two years as environmental, social and governance (ESG) language fades from the corporate lexicon.
