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Global Enforcement Tracker

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Recent global enforcement cases, court rulings, and new rules affecting greenwashing, ESG, and environmental claims.

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Last updated: Fri, 17 Apr 2026 08:30:28 GMT

Real regulatory actions affecting environmental and sustainability claims worldwide.

The EcoAppraise Global Enforcement Tracker aggregates enforcement cases, regulatory investigations, court rulings, and new rules affecting environmental marketing and ESG claims across major jurisdictions.

Cases currently include developments from: • United States (federal and state) • Canada • United Kingdom • European Union &  EU member states • Australia • India

Each entry summarizes the issue, regulator or authority involved, and the source of the action.

How to use the tracker

• Scroll to browse the most recent enforcement actions  • Use the search tool to filter by company, regulator, or country • Sort by date to see the latest regulatory developments

The tracker updates automatically as new enforcement actions and regulatory developments are identified.

FTC Complaint and Proposed Order: TouchTunes Music Company, LLC

FTC filed a complaint and proposed order against TouchTunes for falsely claiming its electronic dartboards were 'Made in the USA' when they contained significant imported components. The order includes $625,000 for consumer redress and prohibits future misrepresentations.

TouchTunes Music Company, LLC

USD 625,000

Federal Trade Commission

consumer redress

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Largest monetary redress in a Made in USA Labeling Rule case to date; sets precedent for enforcement against misleading environmental and origin claims.

Americana Liberty LLC and Three Nations LLC – FTC Complaint and Proposed Order

FTC action against Americana Liberty and Three Nations for falsely advertising flags and patriotic products as 'Made in the USA' when they were imported or contained significant foreign components. Settlement includes $167,743 for consumer redress and compliance requirements.

Americana Liberty LLC; Three Nations LLC

USD 167,743

Federal Trade Commission

settlement

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Addresses deceptive environmental and origin claims in product marketing, with monetary redress and compliance obligations.

TouchTunes Music Company, LLC – FTC Complaint and Proposed Order

FTC filed a complaint against TouchTunes for falsely claiming its electronic dartboards were 'Made in the USA' when key components were imported. Settlement includes $625,000 for consumer redress and prohibitions on misleading origin claims.

TouchTunes Music Company, LLC

USD 625,000

Federal Trade Commission

settlement

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Largest monetary redress in a Made in USA Labeling Rule case, reinforcing the need for substantiated environmental and origin claims.

FTC Complaint and Proposed Order: Americana Liberty LLC and Three Nations LLC

FTC action against Americana Liberty and Three Nations for falsely advertising flags and patriotic products as 'Made in the USA' when they were imported or contained significant foreign components. The order includes $167,743 for consumer redress and mandates compliance with labeling rules.

Americana Liberty LLC; Three Nations LLC

USD 167,743

Federal Trade Commission

consumer redress

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Highlights FTC enforcement of environmental and origin claims in textile and patriotic products, with monetary penalties and compliance requirements.

Oak Street Manufacturing Company, LLC – FTC Complaint and Proposed Order

FTC filed a complaint against Oak Street for falsely claiming certain footwear was 'handcrafted 100%' in the US, when components and assembly occurred abroad. Settlement includes $75,000 for consumer redress and prohibitions on misleading claims.

Oak Street Manufacturing Company, LLC

USD 75,000

Federal Trade Commission

settlement

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Reinforces FTC's scrutiny of environmental and origin claims in product advertising.

FTC Complaint and Proposed Order: Oak Street Manufacturing Company, LLC

FTC action against Oak Street for falsely claiming certain footwear was 'handcrafted 100%' in the US, when significant manufacturing occurred abroad. The order includes $75,000 for consumer redress and prohibits misleading origin claims.

Oak Street Manufacturing Company, LLC

USD 75,000

Federal Trade Commission

consumer redress

2026-04-14 | United States | Enforcement Case | US | ftc.gov

Reinforces FTC's scrutiny of environmental and origin marketing claims in the footwear industry, with financial penalties and compliance mandates.

FTC v. Wellington: Complaint and Stipulated Order for Permanent Injunction and Other Relief

FTC action against a high-level MLM participant for deceptive earnings claims, including environmental and sustainability-related representations. The stipulated order includes injunctive relief.

Wellington

Financial Value

Federal Trade Commission

Penalty Type

2026-04-13 | United States | Enforcement Case | US | ftc.gov

Highlights FTC's ongoing enforcement against deceptive marketing, including ESG and environmental claims in multi-level marketing contexts.

Stipulated Order for Permanent Injunction and Other Relief: FTC v. Wellington

Stipulated order resolving FTC's case against Wellington, imposing permanent injunction and other relief for deceptive marketing practices.

Wellington

Financial Value

Federal Trade Commission

Penalty Type

2026-04-13 | United States | Court Ruling | United States | ftc.gov

Sets precedent for injunctive relief in deceptive marketing cases, relevant for ESG and environmental advertising enforcement.

Complaint for Permanent Injunction and Other Relief: FTC v. Wellington

FTC filed a complaint for permanent injunction and other relief against a high-level MLM participant for deceptive earnings claims, including misleading representations about income opportunities.

Wellington

Financial Value

Federal Trade Commission

Penalty Type

2026-04-13 | United States | Enforcement Case | United States | ftc.gov

Highlights FTC's ongoing enforcement against deceptive marketing practices, including those with environmental or ESG implications.

Legislation Passes To Amend Environmental Claims Prohibitions Of The Competition Act

Canada passed Bill C-15 on March 26, 2026, amending the Competition Act's environmental claims provisions. The amendments remove the requirement for substantiating business or business activity environmental benefit claims using an 'internationally recognised methodology' and restrict private parties from directly prosecuting such claims before the Competition Tribunal. Claims must still be based on 'adequate and proper substantiation.'

Company

Financial Value

Competition Bureau Canada

Penalty Type

2026-04-08 | Canada | New Rule | Canada | competition-bureau.canada.ca

These changes provide greater clarity and reduce compliance uncertainty for businesses making environmental claims, while maintaining requirements for substantiation and regulatory oversight.

BaFin warns consumers about the website green-lmtd.com

BaFin issued a warning regarding green-lmtd.com, suspecting the operators of offering financial, investment, and cryptoasset services in Germany without the required authorisation and falsely claiming supervision by a non-existent 'European Financial Supervisory Authority (FINA EU)'.

green-lmtd.com

Financial Value

BaFin

Penalty Type

2026-04-07 | Germany | Enforcement Case | EU | bafin.de

This action highlights BaFin's ongoing enforcement against unauthorised financial and ESG-related services, with a focus on misleading environmental and sustainability claims.

60 Day Notice 2026-01502: Environmental Health Advocates, Inc. v. Lush Retail Limited et al.

A 60-day notice of violation was filed against Lush Retail Limited and related entities for alleged failure to warn consumers about the presence of diethanolamine in the 'Lush Tingle Body Conditioner,' amending a previous notice and naming a new responsible individual.

Lush Retail Limited, Lush USA Inc., Lush Handmade Cosmetics LTD., Cosmetic Warriors Limited

Financial Value

California Department of Justice

Penalty Type

2026-04-03 | California | Enforcement Case | California | oag.ca.gov

This notice signals ongoing Prop 65 enforcement activity in California targeting environmental and chemical disclosure in consumer products, with updated parties and responsible individuals.

60 Day Notice 2026-01499: EHA v. Lush Retail Limited et al. (Proposition 65 - Diethanolamine in Hand Cream)

A 60-day notice of violation was filed against Lush Retail Limited, Lush USA Inc., Lush Handmade Cosmetics LTD., and Cosmetics Warriors Limited for alleged failure to warn about diethanolamine in Lush Helping Hands Hand Cream, in violation of California's Proposition 65. The notice amends a prior notice and updates responsible individuals and entities.

Lush Retail Limited; Lush USA Inc.; Lush Handmade Cosmetics LTD.; Cosmetics Warriors Limited

Financial Value

California Department of Justice

Penalty Type

2026-04-03 | United States - California | Pending Case | California | oag.ca.gov

This is a current pending enforcement action under California's Proposition 65, highlighting regulatory enforcement on chemical content and environmental/health claims in cosmetics.

SEBI issues circular on ESG disclosures for listed entities

SEBI released a circular mandating enhanced ESG and environmental disclosures for listed companies, including requirements to substantiate environmental claims.

Company

Financial Value

Securities and Exchange Board of India (SEBI)

Penalty Type

2026-03-27 | India | New Rule | India | sebi.gov.in

Introduces new compliance obligations for Indian listed companies regarding ESG and green marketing.

60 Day Notice 2026-01371: EHA v. OrganicGirl, LLC et al. (Proposition 65 - Cadmium in Salad Mixes)

A 60-day notice of violation was filed against OrganicGirl, LLC, Smart & Final Stores LLC, and Albertsons Companies, Inc. for alleged failure to warn consumers about cadmium in various salad products, in violation of California's Proposition 65. The notice amends a prior notice and updates responsible individuals and entities.

OrganicGirl, LLC; Smart & Final Stores LLC; Albertsons Companies, Inc.

Financial Value

California Department of Justice

Penalty Type

2026-03-27 | United States - California | Pending Case | California | oag.ca.gov

This is a current pending enforcement action under California's Proposition 65, reflecting ongoing regulatory scrutiny of environmental and chemical exposure claims in consumer food products.

Environmental claims and the Competition Act: Updated guidance

The Competition Bureau Canada published updated guidance on environmental claims, emphasizing substantiation, specificity, and truthfulness, following recent amendments to Canadian law targeting greenwashing.

Company

Financial Value

Competition Bureau Canada

Penalty Type

2026-03-27 | CA | Regulatory Guidance | Canada | competition-bureau.canada.ca

This guidance clarifies enforcement priorities and principles for environmental marketing, requiring evidence-based claims and transparency, and signals increased regulatory scrutiny.

EU check reveals misleading sales practices online

A coordinated sweep by the European Commission and consumer protection authorities found widespread misleading sales practices during Black Friday and Cyber Monday, including false discounts, misleading price comparisons, pressure-selling, and 'drip pricing.' These practices are illegal under EU consumer law, and national authorities may take enforcement action.

Company

Financial Value

European Commission, Consumer Protection Cooperation Network

Penalty Type

2026-03-26 | European Union | Investigation | EU | commission.europa.eu

The findings highlight ongoing enforcement focus on misleading environmental and sustainability-related marketing practices in online retail, reinforcing the need for compliance with the Price Indication Directive and Unfair Commercial Practices Directive.

ISSB seeks feedback on proposed amendments to three SASB Standards

The ISSB published an Exposure Draft proposing amendments to three SASB Standards (Agricultural Products; Meat, Poultry & Dairy; Electric Utilities & Power Generators) and related guidance under IFRS S2. The amendments aim to align SASB Standards with ISSB Standards, improve international applicability, and support interoperability. The comment period closes on 24 July 2026.

Company

Financial Value

International Sustainability Standards Board (ISSB)

Penalty Type

2026-03-26 | Global | Consultation | Global | ifrs.org

This consultation is significant for entities using SASB Standards for ESG and climate-related disclosures, as it signals further harmonization and enhancement of industry-specific environmental reporting requirements.

CNMV issues guidance on sustainability disclosures for investment products

The Spanish securities regulator CNMV published new guidance on sustainability disclosures for investment products, aiming to improve transparency and prevent greenwashing.

Company

Financial Value

Comisión Nacional del Mercado de Valores

Penalty Type

2026-03-17 | Spain | Regulatory Guidance | Spain | cnmv.es

Spanish investment firms must comply with new disclosure requirements to ensure that sustainability claims are clear, accurate, and not misleading.

Commission seeks feedback on revision of criteria for sustainable economic activities

The European Commission is consulting on revisions to the EU taxonomy criteria for sustainable economic activities, aiming to simplify the framework and improve clarity for market participants. The draft revisions include streamlined criteria and clarifications on compliance demonstration.

Company

Financial Value

European Commission

Penalty Type

2026-03-17 | European Union | Consultation | EU | commission.europa.eu

The consultation may lead to new rules affecting how environmental and sustainability claims are substantiated and disclosed, impacting green finance and ESG marketing across the EU.

ACCC Principles for Trustworthy Environmental Claims

The ACCC published detailed guidance for businesses on making environmental and sustainability claims, including principles for accuracy, evidence, transparency, clear language, and avoiding greenwashing. The guidance includes practical examples and warnings against broad, unqualified claims.

Company

Financial Value

Australian Competition and Consumer Commission

Penalty Type

2026-03-12 | Australia | Regulatory Guidance | Australia | accc.gov.au

This guidance is a key compliance resource for businesses making environmental claims, helping to prevent misleading conduct and greenwashing. It is current and actively referenced in enforcement and regulatory practice.

Environmental and sustainability claims: ACCC guidance for businesses

The ACCC has published updated guidance for businesses on making environmental and sustainability claims. The guidance outlines principles for trustworthy claims, including accuracy, evidence, transparency, and avoiding broad or unqualified statements. The ACCC highlights enforcement priorities and the risk of greenwashing under Australian Consumer Law.

Company

Financial Value

Australian Competition and Consumer Commission (ACCC)

Penalty Type

2026-03-12 | AU | Regulatory Guidance | Australia | accc.gov.au

This guidance is a key compliance resource for businesses making environmental claims in Australia. It clarifies expectations and enforcement priorities, and is directly relevant for companies seeking to avoid greenwashing enforcement actions.

Misleading environmental claims and social responsibility in advertising – Updated Guidance

The ASA updated its guidance on misleading environmental claims and social responsibility in advertising in October 2025. The guidance consolidates the ASA's position and reflects recent changes to the CAP and BCAP Codes, including the removal of certain rules on energy efficiency class and product fiche information.

Company

Financial Value

ASA

Penalty Type

2026-03-04 | United Kingdom | Regulatory Guidance | UK | asa.org.uk

Advertisers must ensure environmental claims are not misleading and are substantiated. The guidance reflects current regulatory expectations and recent code changes.

SEC Order: The Vanguard Group, Inc. – Misleading Statements on Tax Consequences and Disclosure Failures

The SEC found that Vanguard made misleading statements in prospectuses about potential tax consequences for investors in certain retirement funds, failing to disclose increased capital gains risks and lacking adequate policies to prevent such violations. Vanguard was ordered to pay $14.7 million in disgorgement, $3.5 million in interest, and a $13.5 million civil penalty, with a Fair Fund established for harmed investors.

The Vanguard Group, Inc.

USD 13,500,000

Securities and Exchange Commission

civil penalty

2026-03-02 | United States | Enforcement Case | United States | sec.gov

This enforcement action underscores the SEC's focus on accurate disclosure and robust policies regarding environmental and ESG-related fund marketing.

ASIC sues Auto & General alleging policy discount misrepresentations made to millions of consumers in Budget Direct insurance ads

ASIC launched Federal Court proceedings against Auto & General Services Pty Ltd, alleging misleading advertising of online insurance discounts for Budget Direct customers. Tens of thousands lost promised discounts after policy amendments, with $3.3 million in lost savings. ASIC alleges the conduct breached s12DB of the ASIC Act.

Auto & General Services Pty Ltd

Financial Value

Australian Securities and Investments Commission

Penalty Type

2026-02-26 | Australia | Pending Case | Australia | asic.gov.au

This pending enforcement case targets misleading pricing and environmental/ESG-related advertising, emphasizing ASIC's 2026 enforcement priority on misleading pricing practices. It underscores the importance of transparency in marketing claims.

ISSB Update February 2026: Advancing Nature-related and Climate-related Disclosure Standards

The International Sustainability Standards Board (ISSB) advanced its work on nature-related disclosure requirements, including definitions for 'nature-related risks', 'nature-related opportunities', and 'environmental assets'. The ISSB also decided to provide additional guidance on the connections between climate- and nature-related risks and opportunities, and to enhance the SASB Standards with a new exposure draft and amendments to industry-based guidance for IFRS S2.

Company

Financial Value

International Sustainability Standards Board

Penalty Type

2026-02-26 | Global | Regulatory Guidance | Global | ifrs.org

These developments will expand and clarify global sustainability disclosure standards, directly affecting how companies report on environmental and nature-related risks, and supporting regulatory and market efforts to combat greenwashing.

Walmart, U.S. v. – FTC Enforcement for Deceptive Bamboo and Environmental Claims

FTC sued Walmart for falsely marketing rayon textile products as bamboo and making deceptive environmental claims about ecofriendly processes. The stipulated order requires Walmart to cease deceptive advertising and pay a $3 million civil penalty.

Walmart, Inc.

USD 3,000,000

Federal Trade Commission

civil penalty

2026-02-13 | United States | Enforcement Case | United States | ftc.gov

Major enforcement action targeting greenwashing and false environmental marketing claims in the textile sector.

FTC Order to Prohibit Forever Living and its Operators from Deceiving Consumers about Potential Earnings

The FTC issued a permanent order against Forever Living Products International LLC and its operators, prohibiting them from making deceptive earnings claims in their multilevel marketing business. The company had misled consumers about potential profits, with most participants making little or no money. The order requires substantiation for any earnings claims and prohibits misrepresentation of earnings, recruitment likelihood, and other material facts.

Forever Living Products International LLC

Financial Value

Federal Trade Commission

Penalty Type

2026-02-13 | United States | Enforcement Case | US | ftc.gov

This enforcement action highlights the FTC's ongoing scrutiny of deceptive marketing practices, including those related to environmental and earnings claims in MLMs. It reinforces the need for substantiated claims and transparency in advertising.

FTC Green Guides: Ongoing Review and Heightened Scrutiny of Environmental Claims

The Federal Trade Commission (FTC) continues its review of the Green Guides, which provide guidance to businesses on making non-deceptive environmental marketing claims. The FTC is actively soliciting input and considering updates to address new types of environmental claims, including those related to carbon offsets and climate claims. The FTC and the National Advertising Division (NAD) are also increasing enforcement and review of greenwashing in advertising.

Company

Financial Value

Federal Trade Commission

Penalty Type

2026-02-13 | United States | Consultation | North America | ftc.gov

Advertisers face increased regulatory risk as the FTC prepares to update the Green Guides and steps up enforcement against misleading environmental claims. Companies should ensure substantiation and clarity in all environmental marketing.

FTC Closing Letter: Marketing Holders LLC

FTC issued a closing letter to Marketing Holders LLC after the company remediated unqualified 'Made in USA' claims and committed to future compliance.

Marketing Holders LLC

Financial Value

Federal Trade Commission

Penalty Type

2026-02-13 | United States | Investigation | United States | ftc.gov

Demonstrates FTC's use of closing letters and ongoing monitoring for environmental and origin marketing compliance.

FTC Announces “Made in the USA” Sweep, Including Three Law Enforcement Actions to Protect American Consumers and Businesses

The FTC announced enforcement actions against three companies for deceptive 'Made in the USA' claims, including settlements with TouchTunes, Americana Liberty, and Oak Street for falsely advertising products as American-made. The actions include monetary redress, prohibitions on misleading claims, and consumer notifications.

Company

Financial Value

Federal Trade Commission

Penalty Type

2026-02-13 | United States | Enforcement Case | United States | ftc.gov

Demonstrates FTC's active enforcement of environmental and origin marketing claims, reinforcing the need for substantiated and truthful advertising regarding product origin.

FTC Closing Letter: Lamar Trailers, Inc.

FTC issued a closing letter to Lamar Trailers, Inc. after the company took remedial action regarding 'Made in USA' claims and committed to compliance.

Lamar Trailers, Inc.

Financial Value

Federal Trade Commission

Penalty Type

2026-02-13 | United States | Investigation | United States | ftc.gov

Shows FTC's approach to resolving some environmental and origin advertising cases through warnings and monitoring.

FTC Takes Action Against TruHeight for Deceptive and Unsubstantiated Advertising of Supposed Height-Enhancing Supplements for Kids and Teens

The FTC settled charges with TruHeight for making unsubstantiated health claims about height-enhancing supplements and using fake or incentivized consumer reviews. The proposed order imposes a $4 million judgment (partially suspended), prohibits unsubstantiated health claims, bans fake reviews, and restricts incentivized reviews.

TruHeight (Vanilla Chip LLC)

USD 4,000,000

Federal Trade Commission

administrative fine

2026-02-13 | United States (Federal) | Enforcement Case | United States | ftc.gov

This enforcement highlights the FTC's ongoing focus on substantiation of health and environmental claims, and the prohibition of deceptive marketing practices, including fake reviews, which are relevant to ESG and environmental advertising compliance.

FTC Takes Action Against TruHeight for Deceptive and Unsubstantiated Advertising of Supposed Height-Enhancing Supplements for Kids and Teens

The FTC announced a proposed settlement with TruHeight and its principals for making unsubstantiated health claims and using fake or incentivized consumer reviews to promote height-enhancing supplements for children and teenagers. The order imposes a $4 million judgment (partially suspended), prohibits future unsubstantiated health and height claims, and bans the use of fake or incentivized reviews.

TruHeight (Vanilla Chip LLC)

USD 750,000

Federal Trade Commission

settlement

2026-02-13 | United States (Federal) | Enforcement Case | North America | ftc.gov

This action reinforces the FTC's focus on substantiation of health and environmental claims, and the prohibition of deceptive marketing practices, including fake reviews. It signals heightened enforcement risk for companies making unsubstantiated or misleading claims about product efficacy, including environmental or ESG-related attributes.

ASA Ruling on Kit & Kin Ltd: Environmental Claims Misleading

The UK Advertising Standards Authority (ASA) upheld three complaints against Kit & Kin Ltd for misleading environmental claims, including 'eco', 'sustainable', and 'biodegradable', finding insufficient substantiation and unclear claim basis.

Kit & Kin Ltd

Financial Value

Advertising Standards Authority (ASA)

Penalty Type

2026-02-04 | United Kingdom | Court Ruling | United Kingdom | asa.org.uk

Reinforces the need for robust evidence and clear communication in environmental marketing; sets a compliance benchmark for absolute and comparative green claims in the UK.

ASA Ruling on Kit & Kin Ltd: Misleading Environmental Claims Upheld

The ASA upheld three complaints against Kit & Kin Ltd regarding misleading environmental claims for its 'Eco nappies & wipes' range. The ASA found that claims such as 'eco', 'sustainable', and 'biodegradable' were not substantiated and gave a misleading impression of the products' environmental impact. The company was ordered to ensure future environmental claims are clear, substantiated, and not misleading.

Kit & Kin Ltd

Financial Value

Advertising Standards Authority

Penalty Type

2026-02-04 | United Kingdom | Enforcement Case | Europe | asa.org.uk

This ruling reinforces the need for robust substantiation and clarity in environmental marketing claims, especially for absolute terms like 'eco' and 'sustainable'. It highlights the ASA's strict approach to greenwashing and sets a compliance benchmark for similar product categories.

Commission takes on first unconscionable conduct cases

The Commerce Commission filed proceedings against Brand Developers Limited (The TV Shop) and Tech Vault Enterprises Ltd (HouseSmile) for alleged unconscionable conduct, including exploitative and misleading sales practices. The cases are the first under the new unconscionable conduct prohibition in the Fair Trading Act.

Brand Developers Limited; Tech Vault Enterprises Ltd

Financial Value

Commerce Commission

Penalty Type

2026-02-04 | NZ | Pending Case | New Zealand | comcom.govt.nz

These are the first cases enforcing the new unconscionable conduct provisions, setting a precedent for future enforcement against egregious business practices, including misleading environmental or sustainability-related claims.

21 airlines agree to modify environmental claims after EU Commission and CPC Network action

Following coordinated action by the European Commission and the Consumer Protection Cooperation (CPC) Network, 21 airlines committed to stop suggesting that CO₂ emissions of specific flights can be neutralized, offset, or directly reduced, and to ensure all sustainability-related statements are substantiated and transparently explained.

Company

Financial Value

European Commission

Penalty Type

2026-01-30 | European Union | Enforcement Case | EU | commission.europa.eu

This enforcement action sets a precedent for the aviation sector, requiring substantiated and transparent environmental claims and prohibiting vague green terminology.

CMA Publishes Supplement to Green Claims Code: Supply Chain Due Diligence

The Competition and Markets Authority (CMA) published a supplement to its Green Claims Code, clarifying that retailers and distributors cannot simply rely on green claims made by upstream suppliers. The guidance emphasizes the need for due diligence and verification throughout the supply chain.

Company

Financial Value

Competition and Markets Authority

Penalty Type

2026-01-22 | United Kingdom | Regulatory Guidance | United Kingdom | gov.uk

This guidance increases compliance obligations for businesses making environmental claims, requiring proactive supply chain management and regular audits to avoid misleading consumers.

ESMA publishes thematic note on clear, fair and not misleading sustainability-related claims: ESG strategies

ESMA issued a second thematic note focusing on ESG strategies, particularly ESG integration and ESG exclusions, in marketing communications to retail investors. The note emphasizes the need for transparency and clarity in the use of these terms and provides practical do’s and don’ts, with examples of good and poor practices.

Company

Financial Value

ESMA

Penalty Type

2026-01-14 | European Union | Regulatory Guidance | EU | esma.europa.eu

This guidance is significant for asset managers and financial product providers, as it clarifies expectations for ESG-related marketing and helps mitigate greenwashing risks in investor communications.

ISSB issues targeted amendments to IFRS S2 to support implementation

The International Sustainability Standards Board (ISSB) issued targeted amendments to the greenhouse gas (GHG) emissions disclosure requirements in IFRS S2 Climate-related Disclosures. The amendments clarify measurement and disclosure of Scope 3 Category 15 GHG emissions, permit alternative classification systems for disaggregating financed emissions, and introduce jurisdictional reliefs for certain GHG measurement protocols. These changes are effective for reporting periods beginning on or after 1 January 2027, with early application permitted.

Company

Financial Value

International Sustainability Standards Board (ISSB)

Penalty Type

2025-12-11 | Global | New Rule | Global | ifrs.org

These amendments provide practical relief and clarifications for companies implementing IFRS S2, directly affecting how environmental and climate-related claims are substantiated and disclosed in financial reporting.

ASA Ruling on Lacoste E-commerce t/a Lacoste

The ASA upheld a complaint against Lacoste E-commerce for a paid Google ad claiming 'Lacoste Kids – Sustainable clothing'. The ASA found the claim was ambiguous, unqualified, and not substantiated, likely misleading consumers about the environmental impact of the clothing.

Lacoste E-commerce

Financial Value

Advertising Standards Authority

Penalty Type

2025-12-03 | United Kingdom | Enforcement Case | United Kingdom | asa.org.uk

The ruling highlights the ASA's strict approach to unqualified and absolute environmental claims in advertising, requiring clear substantiation and explanation.

ASA Proactive Monitoring of Environmental Claims in Travel Sector

The ASA reported on its proactive monitoring of 362,000 travel adverts, identifying 329 ads with green claims, of which 213 appeared likely to breach ASA rules due to vague or unsubstantiated claims such as 'eco-friendly' or 'green'.

Company

Financial Value

Advertising Standards Authority

Penalty Type

2025-12-02 | United Kingdom | Investigation | United Kingdom | asa.org.uk

Demonstrates the ASA's increased use of AI-based monitoring to enforce compliance with environmental advertising standards, signaling heightened enforcement risk for non-compliant claims.

Empowering Consumers for the Green Transition: New EU Directive and Q&A on Environmental Claims

The European Commission published detailed Questions and Answers in November 2025 to guide companies ahead of the transposition of the Empowering Consumers for the Green Transition (ECGT) Directive. The Directive introduces stricter standards for substantiating environmental claims, restricts generic terminology, and prohibits sustainability labels not based on independent certification. Member States must transpose by 27 March 2026, with rules applying from 27 September 2026.

Company

Financial Value

European Commission

Penalty Type

2025-11-27 | European Union | New Rule | EU | commission.europa.eu

This marks a major regulatory shift, requiring companies to ensure all environmental claims are precise, verifiable, and supported by credible evidence. It also expands the blacklist of unfair practices and clarifies that brand and product names implying environmental benefits are subject to substantiation requirements.

ASA Ruling on Good Energy Ltd

The ASA upheld complaints against Good Energy Ltd for misleading environmental claims in a paid social media ad, which stated that low-carbon homes could save over £1000 a year in bills. The ad failed to substantiate the claims and omitted material information about the type of installations and qualifications required for the savings.

Good Energy Ltd

Financial Value

Advertising Standards Authority

Penalty Type

2025-11-26 | United Kingdom | Court Ruling | UK | asa.org.uk

Demonstrates strict enforcement of substantiation and clarity requirements for environmental savings claims in advertising. Highlights need for marketers to provide all material information and evidence for environmental claims.

Attorney General Bonta Announces $3.35 Million Settlement with Plastic Bag Manufacturers

California Attorney General Rob Bonta announced settlements totaling $3.35 million with three major plastic bag producers for violating environmental marketing and advertising laws by falsely marketing non-recyclable plastic bags as recyclable. The settlement resolves allegations under SB 270, the Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law. The companies also agreed to stop selling plastic bags in California ahead of a new law (SB 1053) banning plastic bags at checkout effective January 1, 2026.

Novolex Holdings, LLC; Inteplast Group Corporation; Mettler Packaging LLC

USD 3,350,000

California Department of Justice

settlement

2025-10-17 | California | Enforcement Case | California | oag.ca.gov

This is a major enforcement action targeting greenwashing and misleading environmental claims in product marketing, with direct compliance implications for manufacturers and retailers regarding recyclability claims and plastic bag bans.

BaFin Intensifies Action Against Greenwashing in Financial Services

BaFin has increased its enforcement focus on greenwashing, monitoring whether supervised institutions fulfill their sustainability disclosure obligations and ensuring marketing communications do not contradict disclosed information. The regulator also checks implementation of requirements for querying sustainability preferences.

Company

Financial Value

BaFin

Penalty Type

2025-09-24 | Germany | Regulatory Guidance | Europe | bafin.de

German financial institutions face heightened scrutiny and enforcement risk for misleading ESG and environmental claims, with BaFin prioritizing greenwashing prevention as a supervisory objective.

Kmart investigated and warned by ComCom for greenwashing advertising

The Commerce Commission issued a warning to Kmart NZ Holdings Limited for potentially breaching the Fair Trading Act by making unsubstantiated '100% sustainably sourced cotton' claims. Kmart admitted its 'Better Cotton' was mixed with conventional cotton, making the absolute claim misleading. Kmart removed the claim after the investigation.

Kmart NZ Holdings Limited

Financial Value

Commerce Commission

Penalty Type

2025-08-14 | NZ | Enforcement Case | New Zealand | comcom.govt.nz

This action highlights the need for businesses to ensure environmental claims are accurate and substantiated to avoid breaching consumer protection laws. The Commission emphasizes that unsubstantiated claims are unfair to both consumers and compliant businesses.

ASA Ruling on EDF Energy Ltd t/a EDF

The ASA upheld a complaint against EDF Energy Ltd for a paid Google ad that omitted material information about eligibility criteria for a government grant for heat pumps. The ad gave the impression that all consumers were eligible for the grant, which was misleading.

EDF Energy Ltd

Financial Value

Advertising Standards Authority

Penalty Type

2025-08-06 | United Kingdom | Court Ruling | UK | asa.org.uk

Reinforces requirement for environmental marketing to include all material information, especially regarding eligibility for government incentives. Marketers must ensure clarity and avoid misleading omissions.

Italian Competition Authority: 1 million euros fine imposed on Shein for misleading and omissive green claims

The Italian Competition Authority fined Infinite Styles Services Co. Ltd (Shein) 1 million euros for misleading and/or deceptive environmental messages and claims (green claims) in the promotion and sale of Shein-branded clothing products. The claims were found to be vague, generic, misleading, or omissive, particularly regarding recyclability, use of 'green' fibres, and emissions targets.

Infinite Styles Services Co. Ltd (Shein)

EUR 1,000,000

Autorità Garante della Concorrenza e del Mercato

administrative fine

2025-08-04 | Italy | Enforcement Case | EU | agcm.it

This is a major enforcement action targeting greenwashing in the fast fashion sector, highlighting the need for clear, substantiated, and non-misleading environmental claims in advertising.

Warning from the Commerce Commission for unsubstantiated representation '100% sustainably sourced cotton'

The Commerce Commission issued a detailed warning letter to Kmart NZ Holdings Limited after investigating its '100% sustainably sourced cotton' claim. The Commission concluded Kmart may have breached section 12A of the Fair Trading Act by making an unsubstantiated representation, as Kmart could not verify the absolute claim due to the mass balance system in its supply chain.

Kmart NZ Holdings Limited

Financial Value

Commerce Commission

Penalty Type

2025-07-30 | NZ | Enforcement Case | New Zealand | comcom.govt.nz

This letter provides compliance guidance for all businesses making environmental claims, emphasizing the legal requirement for substantiation and the risks of using absolute terms like '100% sustainable.' The warning may be considered in future enforcement if similar conduct recurs.

Environmental claims and greenwashing – Competition Bureau Canada enforcement perspective

The Competition Bureau Canada outlines its enforcement approach to environmental claims and greenwashing, referencing recent amendments to the Competition Act and ongoing development of enforcement guidelines.

Company

Financial Value

Competition Bureau Canada

Penalty Type

2025-07-10 | Canada | Regulatory Guidance | Canada | competition-bureau.canada.ca

This resource provides businesses with the Bureau’s current enforcement perspective and links to relevant guidance, rules, and case examples.

ESMA publishes thematic note on clear, fair and not misleading sustainability-related claims

ESMA released a thematic note outlining four guiding principles—accuracy, accessibility, substantiality, and being up to date—for sustainability-related claims in non-regulatory communications. The note provides practical examples of good and poor practices, focusing on sustainability credentials such as labels or awards, to address greenwashing risks in retail investor communications.

Company

Financial Value

ESMA

Penalty Type

2025-07-01 | European Union | Regulatory Guidance | EU | esma.europa.eu

This guidance is intended to help market participants avoid greenwashing by ensuring sustainability claims are clear, fair, and not misleading. It is directly relevant for compliance teams preparing or reviewing ESG and environmental marketing materials.

CMA Consultation: Climate-Related Transition Plan Requirements

The UK government launched a consultation on potential mandatory disclosure of environmental credentials for UK-regulated financial institutions, focusing on climate-related transition plans.

Company

Financial Value

Competition and Markets Authority

Penalty Type

2025-06-25 | United Kingdom | Consultation | United Kingdom | gov.uk

If adopted, these requirements would introduce mandatory environmental reporting, reducing the scope for 'greenhushing' and increasing transparency obligations for financial institutions.

Australian Gas Networks in Court over alleged greenwashing in renewable gas campaign

The ACCC has initiated Federal Court proceedings against Australian Gas Networks Limited, alleging false and misleading representations in its 'Love Gas' advertising campaign. The ACCC claims the company misled consumers by stating that the gas it distributes would be renewable within a generation, without reasonable grounds for this claim.

Australian Gas Networks Limited

Financial Value

Australian Competition and Consumer Commission

Penalty Type

2025-06-25 | AU | Enforcement Case | Australia | accc.gov.au

This is a current enforcement action targeting future-focused environmental claims in advertising. The case highlights the ACCC's scrutiny of unqualified and unsubstantiated environmental marketing, reinforcing the need for evidence-based claims about future environmental performance.

Canada Competition Bureau Issues Final Guidelines on Environmental Claims

On June 5, 2025, the Competition Bureau released final guidelines for environmental claims, clarifying requirements for substantiation and testing under the amended Competition Act.

Company

Financial Value

Competition Bureau Canada

Penalty Type

2025-06-05 | Canada (Federal) | Regulatory Guidance | Canada | canada.ca

Provides compliance clarity for Canadian businesses on how to substantiate environmental claims and avoid greenwashing enforcement.

ASA Guidance: Environmental Claims—Clear on Emissions but Not on Omissions

The ASA published guidance emphasizing that unqualified environmental claims may mislead if they omit material information. The guidance references recent rulings, including against TotalEnergies for omitting information about its fossil fuel activities in an ad, and in favor of Shell for providing balanced context. The ASA reiterates that ads must not focus solely on green initiatives without acknowledging the wider environmental impact.

Company

Financial Value

Advertising Standards Authority

Penalty Type

2025-04-24 | United Kingdom | Regulatory Guidance | Europe | asa.org.uk

This guidance is critical for advertisers making environmental claims, especially in high-carbon sectors. It underscores the regulatory expectation for transparency and context, and signals ongoing proactive monitoring and enforcement.

ASA Ruling on Shell UK Ltd: Environmental Impact Ad Not Misleading

The ASA did not uphold complaints against Shell UK Ltd regarding a TV ad that referenced both high- and low-carbon activities. The ad included qualifying information about the proportion of Shell’s investments in oil & gas versus low-carbon energy solutions. The ASA found the ad provided a balanced picture and did not mislead consumers about Shell’s overall environmental impact.

Shell UK Ltd

Financial Value

Advertising Standards Authority

Penalty Type

2025-04-09 | United Kingdom | Court Ruling | Europe | asa.org.uk

This decision clarifies that environmental claims in advertising for high-carbon sector companies must be balanced and contextualized, with clear qualifying information. It provides guidance on how to present mixed environmental credentials without misleading consumers.

Active Super ordered to pay $10.5 million penalty in ASIC’s third greenwashing court action

The Federal Court imposed a $10.5 million penalty against Active Super for greenwashing misconduct. Active Super falsely claimed to exclude certain investments based on ESG screens, but held investments in companies involved in gambling, coal mining, oil tar sands, and Russian entities. The misleading conduct lasted over two years and affected investor confidence.

Active Super

AUD 10,500,000

Australian Securities and Investments Commission

civil penalty

2025-03-18 | Australia | Court Ruling | Australia | asic.gov.au

This is a major court ruling and enforcement action, sending a strong compliance message to financial services firms about the accuracy of ESG and sustainability claims. It highlights the need for robust systems to ensure truthful environmental marketing.

Individual ordered to pay compensation and pecuniary penalty for making false or misleading representations

The High Court ordered Rangi Wyatt Stephen Savage Senior to pay compensation and a pecuniary penalty for breaching the Financial Markets Conduct Act by making false or misleading representations in a regulated public offer, including unsubstantiated claims about business prospects.

The Powder Shed Tokoroa Limited

NZD 268,714

Financial Markets Authority

civil penalty

2025-02-17 | NZ | Court Ruling | New Zealand | fma.govt.nz

The case reinforces the requirement for substantiated and accurate representations in financial product offers, including those with environmental or ESG elements.

Securities and Exchange Board of India: Consultation Paper on ESG Disclosures, Ratings and Investing

SEBI released a consultation paper seeking public feedback on proposed changes to ESG disclosures, ESG ratings, and ESG investing frameworks. The proposals aim to enhance transparency, comparability, and reliability of ESG-related information in the Indian securities market.

Company

Financial Value

Securities and Exchange Board of India

Penalty Type

2024-12-28 | India | Consultation | Asia | sebi.gov.in

The consultation signals SEBI's intent to strengthen regulatory oversight of ESG disclosures and ratings, which may impact greenwashing enforcement and compliance obligations for listed companies and market participants.

Central Consumer Protection Authority Issues Guidelines for ‘Prevention and Regulation of Greenwashing and Misleading Environmental Claims’

The Central Consumer Protection Authority (CCPA) in India issued new guidelines on October 15, 2024, aimed at preventing and regulating greenwashing and misleading environmental claims in advertising. The guidelines set out requirements for substantiation, transparency, and accuracy in environmental marketing claims.

Company

Financial Value

Central Consumer Protection Authority

Penalty Type

2024-10-17 | IN | New Rule | India | ascionline.in

These guidelines introduce enforceable standards for environmental claims in India, increasing compliance obligations for advertisers and marketers making sustainability or green claims.

ASIC's Vanguard greenwashing action results in record $12.9 million penalty

The Federal Court ordered Vanguard Investments Australia to pay a $12.9 million penalty for making misleading claims about ESG exclusionary screens in its Ethically Conscious Global Aggregate Bond Index Fund. Vanguard admitted that its ESG screening was not applied to a significant portion of the fund's holdings, contrary to its representations.

Vanguard Investments Australia

AUD 12,900,000

ASIC

civil penalty

2024-09-25 | AU | Court Ruling | Australia | asic.gov.au

This is the highest penalty for greenwashing conduct in Australia to date and underscores ASIC's enforcement focus on accurate ESG claims in financial products. It highlights the need for robust verification and disclosure of ESG screening processes.

ASIC continues action on misleading claims to deter greenwashing misconduct

ASIC reported 47 regulatory interventions addressing greenwashing misconduct from April 2023 to June 2024, including civil penalty proceedings, infringement notices, and corrective disclosures. ASIC also highlighted upcoming mandatory climate-related financial disclosure requirements for large businesses and financial institutions.

Company

AUD 123,000

ASIC

civil penalty

2024-08-22 | Australia | Enforcement Case | AU | asic.gov.au

This demonstrates ASIC's active enforcement against misleading ESG and sustainability claims in financial products and services. The report provides compliance recommendations and signals increased scrutiny with new climate disclosure rules imminent.

24-173MR ASIC’s first greenwashing case results in landmark $11.3 million penalty for Mercer | ASIC

Official enforcement case page captured from approved authority source.

Company

Financial Value

Australian Securities and Investments Commission

Penalty Type

2024-08-02 | Australia | Enforcement Case | Oceania | Australian Securities and Investments Commission

Official source captured directly from approved authority registry.

ASIC’s first greenwashing case results in landmark $11.3 million penalty for Mercer

Mercer Superannuation (Australia) Limited was ordered to pay an $11.3 million penalty after admitting to making misleading statements about the sustainable nature and characteristics of its 'Sustainable Plus' superannuation investment options. The court found Mercer failed to exclude investments in companies involved in fossil fuels, alcohol, and gambling as claimed.

Mercer Superannuation (Australia) Limited

AUD 11,300,000

ASIC

civil penalty

2024-08-02 | AU | Court Ruling | Australia | asic.gov.au

This was ASIC’s first greenwashing civil penalty case and sets a precedent for enforcement against misleading ESG claims in the financial services sector. It highlights the importance of accurate ESG disclosures and robust compliance systems.

Attorney General Bonta Files Amended Complaint in Lawsuit Against Five of the Largest Fossil Fuel Companies

California Attorney General Bonta filed an amended complaint against Exxon Mobil, Shell, Chevron, ConocoPhillips, BP, and the American Petroleum Institute, seeking disgorgement of profits under AB 1366 for alleged decades-long greenwashing and false advertising regarding climate change impacts. The complaint adds new evidence of ongoing misleading environmental marketing and requests disgorgement to benefit Californians.

Exxon Mobil; Shell; Chevron; ConocoPhillips; BP; American Petroleum Institute

Financial Value

California Department of Justice

Penalty Type

2024-06-10 | California | Pending Case | California | oag.ca.gov

Major pending litigation targeting greenwashing and deceptive environmental marketing by fossil fuel companies, with new statutory powers to seek disgorgement of profits under AB 1366. Signals increased legal risk for misleading ESG and climate-related claims.

24-121MR Court finds Active Super made misleading ESG claims in a greenwashing action brought by ASIC

The Federal Court found that Active Super (LGSS Pty Limited) made misleading representations about its ESG credentials, including claims that it excluded investments in gambling, coal mining, oil tar sands, and Russian entities, when in fact it held such investments directly and indirectly.

LGSS Pty Limited (Active Super)

Financial Value

Australian Securities and Investments Commission

Penalty Type

2024-06-05 | Australia | Court Ruling | Australia | asic.gov.au

This ruling reinforces the need for financial product providers to ensure ESG and sustainability claims are accurate and not misleading. It is a significant greenwashing enforcement action in Australia.

Commission and national consumer protection authorities start action against 20 airlines for misleading greenwashing practices

The European Commission and the Consumer Protection Cooperation (CPC) network have initiated enforcement action against 20 airlines for potentially misleading environmental claims, including claims about CO2 offsetting, sustainable aviation fuels, and the use of terms like 'green' or 'sustainable' without substantiation. Airlines were given 30 days to respond and align their practices with EU consumer law.

Company

Financial Value

European Commission, CPC Network

Penalty Type

2024-04-30 | European Union | Enforcement Case | EU | ec.europa.eu

This is a major coordinated enforcement action targeting greenwashing in the airline sector, with a focus on substantiation and transparency of environmental claims under the Unfair Commercial Practices Directive and upcoming Green Claims Directive.

EU Commission and CPC Authorities Launch Greenwashing Investigation In Respect Of Green Claims Made By 20 Airlines

The European Commission and Consumer Protection Cooperation (CPC) authorities launched a coordinated investigation into potentially misleading green claims by 20 airlines, focusing on claims about CO2 offsetting, sustainable aviation fuels, and other environmental marketing practices.

Company

Financial Value

European Commission, CPC Authorities

Penalty Type

2024-04-30 | European Union | Investigation | European Union | ec.europa.eu

This is a major cross-border enforcement action targeting greenwashing in the aviation sector, with the Commission warning airlines to align practices with EU consumer law or face sanctions.

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