ARBITRATION AS A FORUM FOR RESOLVING GREENWASHING DISPUTES: PRO ET CONTRA

 In the context of the deteriorating climate situation statements about environmental friendliness and sustainability are increasingly used to advertise goods and services. Many consumers consciously choose products marked «eco», «sustainable», «biodegradable» or «carbon neutral». The use of such words implies that the manufacturer guarantees that the products comply with all environmental standards. At the same time claims about environmental friendliness and sustainability may be unreliable and baseless and are applied by companies solely for the purpose of obtaining additional profit. Such an unfair practice is denoted by the term «greenwashing».  In many states the fight against it is carried out at the legislative level and covers a range of measures designed to prevent misleading consumers. The article explores the phenomenon of greenwashing through the analysis of the most significant legal cases, within the framework of which the specifics of greenwashing can be understood. The author notes that claims against companies are filed by representatives of regulatory authorities, as well as by non-profit environmental organizations. In turn, the establishment of signs of greenwashing in the activities of companies can entail not only liability in the form of a fine, but also damage to business reputation, loss of consumer confidence. The article notes that the number of legal cases related to greenwashing increases every year, as the number of states whose legislation includes provisions on combating greenwashing increases. In this context of expanding judicial practice the author considers the issues of arbitration of greenwashing disputes and the effectiveness of arbitration as an alternative for their resolution.