GreenHushing? How Companies are Avoiding Greenwashing Lawsuits with Caution, Transparency and Clarity
Businesses increasingly recognize the importance of environmentally friendly practices, especially when it comes to packaging, proper disposal and recycling, and using truly sustainable materials like paper. However, a new trend has emerged: companies are becoming more cautious about how they communicate these initiatives. Amid a rise in greenwashing lawsuits, where businesses are accused of overstating or misrepresenting their environmental efforts, many companies are shifting to a more subdued approach. This change reflects not only legal caution but also a growing demand for transparency and adherence to credible standards, such as the FTC’s Green Guides in the U.S. or the Competition Act in Canada. In an era when consumers actively seek eco-friendly options, companies have made efforts to demonstrate their commitment to sustainability. Terms like “biodegradable,” “recyclable,” and “carbon neutral” have appeared more frequently on packaging and in marketing.