This paper analyzes greenwashing, a deceptive marketing strategy that misleads consumers about environmental practices and product benefits, eroding trust and hindering informed decision-making. The practice leads to consumer confusion, skepticism, and a lack of trust in genuine green products, which can diminish their willingness to support environmentally friendly initiatives altogether. The paper highlights a critical problem in Malaysia: the absence of a specific law directly targeting greenwashing. While existing laws, such as the Contracts Act 1950 Act 136 (CA 1950), the Consumer Protection Act 1999 (Act 599) (CPA 1999) and the Companies Act 2016 (Act 777) (CA 2016), can be used to address misleading claims, they do not offer a comprehensive and explicit framework for greenwashing. This forces consumers to navigate complex legal requirements, such as proving a contractual relationship and reliance on misleading statements. The analysis concludes that the current legal framework is insufficient to fully protect consumers, and a more robust regulatory approach is necessary. To effectively combat greenwashing, Malaysia needs to develop a comprehensive strategy that includes harmonizing regulations, enhancing disclosure standards, and strengthening enforcement to ensure corporate accountability and consumer protection.
Loong et al. (Wed,) studied this question.
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