Greenwashing and consumer skepticism toward eco-labels in Croatia: challenges and policy directions

Purpose This study investigates the roots of consumer skepticism toward eco-labels in Croatia, a market increasingly shaped by greenwashing and regulatory frailty. Grounded in the theory of planned behavior and signaling theory, it analyzes the psychological and communicative mechanisms that underpin trust in sustainability labeling. Design/methodology/approach A survey of 252 Croatian consumers was conducted using regression analysis. Data were collected via the tablet-assisted intercept method in five stores. The questionnaire had 13 Likert items, demographics and one open-ended question. A pilot test preceded fieldwork. In-store context allowed for real-time consumer insight. Findings Four determinants – eco-label visibility, institutional support, credibility of labels and consumer knowledge – emerged as significant predictors of purchase intention. The findings imply that standardized visual placement and transparent messaging are pivotal in reducing skepticism, bolstering trust and fostering environmentally responsible purchasing behavior. Research limitations/implications The study covers one country with a limited sample, mostly younger consumers. It uses a survey, so it does not capture deeper attitudes. Future work should add qualitative methods, include older age groups and compare with other countries in similar transitions. Practical implications Policy suggestions include standardized label placement, better consumer education and digital tools for transparency. Retailers should support eco-labels through loyalty programs and in-store efforts to strengthen trust and encourage sustainable choices. Social implications Consumers’ skepticism toward eco-labels influences daily decisions and sustainability. Trustworthy labels encourage greener habits, inspire others and make sustainable consumption a general norm. Over time, this change strengthens environmental responsibility in communities. Originality/value The study extends the TPB by including eco-label visibility and institutional trust, offering insights into transitional EU markets where regulation and label consistency matter more than social influence or design.