Company dealt massive fine after misleading customers with fake program: 'Customers were led to believe'

If you have ever seen a shampoo that was labeled "all natural" but the ingredients list had synthetic substances, you know that it's all too common for companies to use greenwashing to lure in customers.

Greenwashing is especially frequent in the beauty, fashion, and shipping industries because of their high carbon footprints, but not every act of greenwashing is punished. Luckily, the Italian Competition Authority (AGCM) cracked down on three companies, issuing an extraordinary fine of €8 million ($8.7 million).

What's happening?

In January, the Italian Competition Authority fined three transport companies — General Logistics Systems B.V., General Logistics Systems Italy S.p.A., and General Logistics Systems Enterprise S.r.l. — for greenwashing via misleading marketing claims and charging customers an exorbitant amount for carbon offset certificates.

The first issue was that the companies used taglines including "100% green energy in our facilities" with no evidence to back up their claims.

The second issue was that they forced customers to subscribe to a "Climate Protect" program to offset carbon pollution from deliveries. The companies did not verify the carbon emissions created by the customers before charging and charged up to four times more than necessary. Instead of using the excess to offset more of their carbon footprint, they kept the profit.

"While top clients were exempted from paying the contribution, all other customers were led to believe that the GLS companies themselves would be contributing significantly to the program's funding," the AGCM said in a statement.

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Why is greenwashing important?

These false claims influenced customers to choose these shipping companies over others that might have actually offset more of their carbon footprints. The greenwashing also ruined the reputation of the companies.

The transportation industry contributes 8% of global heat-trapping gas pollution and up to 11% if ports and warehouses are included. Demand for shipping is expected to triple by 2050 and become the biggest contributor of all industries, which means it's imperative that we reduce our use of dirty fuels immediately. A way the industry can effect change is to use boats more than cars or trucks and transition to electric vehicles.

What's being done about greenwashing?

More lawsuits are popping up against greenwashing, which means corporations trying to skirt environmental laws are being held accountable. Even Apple isn't exempt from a civil lawsuit.

Consumers can also call out businesses if they see greenwashing, like with this case against Fisher-Price or these brands at Target. If you would like to learn more about greenwashing, you can check out the TCD guide.