Greenwashing and consumer protection in Malaysia: a legal perspective

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.

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