Greenwashing refers to a deceptive marketing practice where a company falsely claims or exaggerates the environmental benefits of its products, services, or practices to appear more environmentally conscious than they are. For example, a fast-fashion brand claims to launch a “sustainable collection” made from recycled materials, but only a tiny portion of the clothing line uses these materials, and the company continues to produce vast amounts of wasteful and low-quality garments.

Greenwashing misleads consumers who are looking to make environmentally conscious choices, resulting in a loss of trust when these claims are exposed. It undermines the efforts of truly sustainable businesses, making it harder for consumers to identify authentic eco-friendly products. A negative impact greenwashing has on companies is that they can face lawsuits if their false claims violate consumer protection laws related to advertising and labeling. 

Companies (especially those that are authentic and environmentally responsible companies) should be transparent about their practices and provide detailed information about how they are reducing their environmental impact. This should prevent misleading claims either by themselves or by consumers.