consumer protection
consumer protection

Greenwashing: Teasing out the intentional from the accidental | Features

Key points

  • Greenwashing accusations highlight tensions between consumer protection and environmental credibility
  • Questions are being asked about whether regulators will punish investors for ‘unintentional’ greenwashing 
  • EU laws already exist to prevent greenwashing but more are likely to be introduced 

The Oxford English Dictionary (OED) defines greenwashing as: “(a) To mislead (the public, public concern, etc) by falsely representing a person, company, product, etc as being environmentally responsible; (b) to misrepresent (a company, its operations, etc) as environmentally responsible”.

Although financial markets rely more on lawyers than lexicographers to understand how regulatory terms are defined, the OED hits on the first dilemma for those trying to navigate ever-strengthening greenwashing rules, and those trying to enforce them: is greenwashing about misleading clients, or it is about making questionable environmental statements?

While the two often overlap, they are not mutually inclusive.  

Take the recurring media headlines expressing outrage that some climate funds contain oil stocks. In an article last year, the leading UK taboid, the Daily Mail, accused the managers selling these kind of products of “deceit”, describing fossil fuel investments as ones “that most green investors would otherwise run a mile from”.

But it is widely acknowledged in green finance that meeting the goals of the Paris Agreement will involve owning, and influencing, the economy’s big polluters. The theory of change underpinning these climate funds may be legitimate, even if clients do not expect their money to be used this way.

Consumer protection

Jakob Thomä, executive director of think tank 2° Investing Initiative (2Dii), says that this tension is not new.

“In finance we always feel like we’re inventing something, but greenwashing has existed as a concept for decades in the corporate world, and there are already rules and definitions,” he explains, pointing to the European Union’s

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YLKI Urges DPR to Immediately Discuss Amendments to the Consumer Protection Law

JAKARTA, KOMPAS.TV – The Indonesian Consumers Foundation (YLKI) urged the DPR to immediately discuss amendments to Law number 8 of 1999 concerning Consumer Protection or UUPK.

This is because the revision of UUPK has been included in the priority national legislation program (prolegnas) for 2023.

“Currently the UUPK has entered the National Legislation Program, so the DPR needs to immediately discuss amendments to the UUPK to protect consumers,” said YLKI Chairperson Tulus Abadi in an online Consumer Complaint Reflection Press Conference, Friday (20/1/2023).

YLKI also proposed a number of things to be included in the revision of the Consumer Protection Law. First, the institution of the Consumer Dispute Settlement Agency (BPSK) is part of the district/city government organs.

Second, YLKI proposes that goods and services be regulated in separate articles.

Member of the YLKI Daily Management, Sudaryatmo, believes that service-related arrangements lead to service providers or service provider. Because, service provider can be done by business people and professionals.

Also Read: YLKI: Trends in Individual Consumer Complaints Tend to Increase, Positive for More Empowerment

Third, regarding standard clauses. Currently, this regulation is contained in article 18 of the Consumer Protection Law.

Sudaryatmo said that standard clause arrangements related to legal issues should be handled by the Ministry of Justice and Human Rights.

“So there must be firmness regarding whether the Consumer Protection Act is approached with issues tradelegal issues or cross issues so that there are cross ministries,” said Sudaryatmo on the same occasion.

Fourth, there must be consumer protection in the digital economy era.

Fifth, strengthening the Non-Governmental Organization for Consumer Protection (LPKSM).

Refund Complaint

Meanwhile, according to the YLKI report, complaints around refunds occupies the first position in complaints related to shopping problems on line.

As many as 32 percent of consumers shopping on line

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