Greenwashing is a deceptive marketing practice that has become increasingly prevalent as consumers become more conscious of their environmental impact. Companies are eager to capitalize on the growing demand for sustainable products, but not all products labeled as “eco-friendly” actually live up to their claims.
One common form of greenwashing is known as hidden trade-offs. This occurs when a product emphasizes one environmental benefit, such as recycled content or reduced packaging, while ignoring other, potentially more significant, environmental impacts. For example, a product may boast about its recycled content but fail to mention that it is heavily bleached, resulting in higher water usage and pollution levels compared to non-recycled alternatives.
Recent examples of hidden trade-offs include Lululemon’s “Be Planet” initiative, which faced a class-action lawsuit for failing to disclose the environmental impact of its operations and supply chain, and Target’s “Target Clean” label, which was challenged in court for misleading claims about the cleanliness of its products.
Another common tactic used in greenwashing is unsubstantiated claims. This occurs when companies make environmental claims without providing evidence to support them. Third-party certification labels can help verify the legitimacy of these claims, but even these labels can be used to deceive consumers.
In 2024, KLM’s “Fly Responsibly” campaign was found to contain misleading statements about the sustainability of flying by the Netherlands’ District Court. The airline was accused of painting an overly optimistic picture of its environmental practices, such as Sustainable Aviation Fuels and carbon offsetting, without disclosing their limited impact on reducing aviation’s environmental footprint.
The food and beverage industry is also under scrutiny for greenwashing practices. Coca-Cola, for example, is facing a lawsuit for allegedly overstating its sustainability and recycling efforts in its business practices.
As consumers, it’s important to be vigilant and informed about greenwashing tactics to make truly environmentally conscious purchasing decisions. Look for products with transparent sustainability commitments and evidence to support their claims. By holding companies accountable for their green claims, we can encourage more genuine efforts towards sustainability in the marketplace. In a groundbreaking move, New York’s attorney general filed a lawsuit against PepsiCo in November 2023, marking the first legal action seeking to hold a company accountable for plastic pollution. This bold step set a precedent for future accountability in the corporate world. Additionally, in 2024, California took a significant step forward in its legal battle against oil companies by amending its complaint to include new evidence of greenwashing and false advertising regarding climate change impacts.
The rise in consumer skepticism towards greenwashing has been notable in recent years. Studies have shown that an increasing number of consumers are conducting their own research on sustainability claims before making purchasing decisions. According to Simon-Kucher’s 2024 study, 70% of consumers engage in this practice, with the number rising to 80% when consumers suspect greenwashing. Another survey conducted in 2024 found that 52% of consumers believed organizations were engaging in greenwashing, a significant increase from the previous year.
One of the key ways to identify greenwashing is by looking out for hidden trade-offs and unsubstantiated claims in marketing materials. For example, if a product is advertised as being a certain percentage more efficient, consumers should be provided with clear information on how this efficiency was measured and what it was compared to. Companies that can support their eco-friendly claims with hard data are more likely to be genuine in their sustainability efforts.
The growing number of regulatory and legal actions against greenwashing indicates a shift towards greater accountability in the industry. However, consumer awareness remains crucial in driving real change. By learning to recognize common greenwashing tactics, such as hidden trade-offs and unsubstantiated claims, consumers can make more informed purchasing decisions that align with their environmental values.
This article, originally published in December 2020 and updated in November 2025, is part of a series focused on raising awareness about greenwashing and promoting informed consumer choices. By staying informed and vigilant, consumers can play a key role in holding companies accountable for their environmental claims and driving positive change in the marketplace.
