Greenwashing is when a company makes its products or practices sound more environmentally friendly than they are. It can be an outright false claim or a vague one that leaves a wrong impression.
Common warning signs
Be careful with broad words like green, eco-friendly or natural when there is no detail behind them. Watch for claims that highlight one small improvement while ignoring the larger impact. Be skeptical of targets with no baseline year, no interim steps and no report of progress.
What regulators say
In the United States, the Federal Trade Commission has issued guidance, known as the Green Guides, on how to make environmental marketing claims that are not misleading. The core rule is simple: claims must be truthful and backed by evidence.
Questions to ask
What exactly is being claimed, and for which part of the product or operation? What is the number, and compared to what? Is there a third-party certification or audit? Are offsets doing the work, or are real emissions falling?
Why it matters for business
Buyers, lenders and regulators are paying closer attention. A company that backs its claims with data builds trust. One that does not risks legal trouble and lost customers. That is why we link to sources in every story.
Related reading
Keep going with more explainers in Eco Explained, or see the latest in News.
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