Anti-Greenwashing Laws for Consumer Protection in Foreign Jurisdictions and Policy Recommendations for Thailand

Abstract

Campaigns addressing climate change in multiple dimensions—such as promoting the adoption of ESG principles in business sectors, establishing environmental trade regulations in various countries, and raising consumer awareness—have made a powerful influence on global trade today. As a result, companies must adapt and build a positive environmental image. However, numerous case studies have shown that many organizations employ marketing strategies based on deceptive environmental claims without implementing credible practices to mitigate environmental impact. This practice is commonly referred to as greenwashing.

The United States and the European Union serve as compelling case studies, as both have enacted anti-greenwashing legislation aimed at protecting investors and consumers from deceptive environmental claims, along with demonstrating strong enforcement mechanisms. In Thailand, there are only regulations set by the Securities and Exchange Commission to govern companies in the capital market and protect investors from misleading sustainability information. Therefore, consumer protection beyond this scope relies on the Consumer Protection Act, specifically regarding unfair advertising. However, challenges may arise in interpretation and enforcement, as there are no specific regulations designating greenwashing as unfair advertising. Furthermore, protection may also be sought under the Penal Code for fraud-related offenses. This article suggests the establishment of clear legal definitions of greenwashing, categorizing it as an unfair advertising practice under the Consumer Protection Act, to enhance legal certainty and facilitate the proper use of marketing strategies by businesses. Additionally, it proposes the reform of existing environmental labeling systems, suggesting a unified regulatory approach aligned with international standards, such as the EU-wide recognized labels, to reduce consumer confusion and strengthen public trust.