The Rise of Green Consumerism and Consumer Trust Issues in India: An Analysis of Patanjeli Ayurved Ltd's Eco-Claims

The Supreme Court of India, recently issued a show-cause notice to ‘Patanjali Ayurved’, co-founded by yoga guru Ramdev, and managing director Balakrishna for not fulfilling their commitment to refrain from making ‘misleading claims’ in advertisements for its medicines. This paper delves into the prevalent problem of greenwashing in India. Employing doctrinal research method, this paper aims to explore the issue of misleading advertising involving fraudulent green claims. The case study of Patanjali Ayurved has been thoroughly examined, igniting a stimulating ethical quandary that has sparked a lively discourse on advertising. This finding of this paper presents some critical insights on greenwashing in herbal medicine sector in India, investigating into the case study of Patanjali Ayurved Ltd. Firstly, it exposes the extensive use of misleading green advertisement by brands like Patanjali by utilizing Ayurveda and sustainability claims to cultivate brand trust. Secondly, it delineates inadequacies in existing law, for example, absence of obligatory ESG disclosures in financial statements and lack of clinical trials regulations. It reveals that the existing law and the lack of a precise definition of ‘greenwashing’ in the Consumer Protection law impedes enforcement. Thirdly, it reveals inadequacies in Corporate Social Responsibility (CSR) rules, where the absence of external audits allows corporations to prioritize brand equity over its social impact. Drawing on consumer behaviour models, the author recommends solutions such as implementing lifecycle-based eco-label transparency, amending laws to delineate greenwashing, refining pharmacovigilance, and initiating consumer awareness campaigns about certifications.