If greenwashing involves intentional deception for financial gain resulting in a loss for the victim or for a consumer or an investor, it could be prosecuted as fraud in certain jurisdictions.

Listen to this article 7 min Listen to this article 7 min Greenwashing is when companies exaggerate or falsely claim environmental benefits to attract eco-conscious consumers. Terms like "eco-friendly" or "all-natural" with no certification, emphasise a minor green aspect to overshadow negative impacts.

It amounts to feigning "green" or "eco-friendly" to gain public approval or sell products without taking meaningful actions to help the environment. This deception can violate advertising and consumer protection laws and can erode consumer trust.

Companies engaging in greenwashing mislead consumers by making false or exaggerated claims about the environmental benefits of their products or services. They exploit the growing demand for sustainable options, capitalising on consumers' genuine desire to make environmentally responsible choices. But does this amount to fraud?

Greenwashing can take many forms:

• Hidden trade-offs: emphasising one eco-friendly attribute while ignoring broader environmental concerns;
• Lack of proof or certification: making unverifiable claims without certification;
• Vagueness: using poorly defined terms that mislead consumers;
• False labels: falsely suggesting third-party endorsements or evoking misleading imagery;
• Irrelevance: highlighting minor green aspects that do not significantly impact sustainability;
• Lesser of two evils: comparing to less-sustainable alternatives to appear environmentally friendly; and
• Falsehoods: making outright untrue claims.

Is greenwashing fraud?

For something to be legally considered...