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Singapore: Advertising standards watchdog finds company in breach of advertising code for greenwashing

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In brief

The Advertising Standards Authority of Singapore (ASAS), Singapore’s advertising standards watchdog, has found an electronics company in breach of the Singapore Code of Advertising Practice (SCAP) for greenwashing or marketing that exaggerates the sustainability of a product. 

This is the ASAS’ first finding of a breach of the SCAP as a result of greenwashing. The advertising standards watchdog has previously received one other complaint about greenwashing since 2020, but the advertisement in that case was found not to have breached the SCAP. 

In more detail 

The ASAS received a complaint about an advertisement for air-conditioners where the caption read “Save Earth and electricity with 5 ticks energy savings”. There were further marketing claims that the air-conditioners were the “best tip” to “save the earth”. 

The ASAS found that the claims breached one of the general principles of the SCAP, which prohibits advertisements from being misleading, whether by inaccuracy, ambiguity, exaggeration, omission or otherwise; and from misrepresenting any matter likely to influence consumers’ attitude to any product. 

Further, the ASAS found that it was not acceptable to communicate that a product brings about energy savings in view of the energy that appliances consume in any case. Regardless of how efficient an electrical appliance is, it will still not be beneficial for the environment. 

Key takeaways

The Competition and Consumer Commission of Singapore announced on 16 November 2023 that it would be developing a set of guidelines to provide suppliers with greater clarity on environmental claims that could amount to unfair practices under the Consumer Protection (Fair Trading) Act (CPFTA), after a study found that one in two products sold online overstated their environmental claims. You may refer to our November 2023 alert for more details. 

In just one month, the ASAS has found a company in breach of the SCAP for greenwashing. This illustrates that regulators and industry watchdogs are closely scrutinizing this space. 

The SCAP is an industry code which does not have force in Singapore. The ASAS, which published the SCAP, regulates the advertising industry. Sanctions meted out by the ASAS for breaches of the SCAP include the withholding of advertising space or time from advertisers, as well as adverse publicity arising from the ASAS publishing details of the outcome of its investigations. Moreover, the ASAS may refer matters involving recalcitrant advertisers that repeatedly ignore the SCAP to the Consumers Association of Singapore (CASE). 

Nonetheless, it may well be that a breach of the SCAP may suggest engaging in unfair practices under the CPFTA. For breaches of the CPFTA, in addition to consumers being able to commence civil proceedings against the supplier for damages, CASE may also invite the errant supplier to enter into a voluntary compliance agreement, which would contain written undertakings that the supplier would not engage in the said unfair practices.

The negative publicity attached to breaches of applicable legislation and/or advertising codes would not be desirable from a brand image perspective. Companies should therefore ensure the accuracy and compliance of any sustainability-related advertising claims to avoid any negative publicity, regulatory penalties and/or sanctions. 

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© 2023 Baker & McKenzie.Wong & Leow. All rights reserved. Baker & McKenzie.Wong & Leow is incorporated with limited liability and is a member firm of Baker & McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “principal” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

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Andy Leck is the head of the Intellectual Property and Technology (IPTech) Practice Group and a member of the Dispute Resolution Practice Group in Singapore. He is a core member of Baker McKenzie's regional IP practice and also leads the Myanmar IP Practice Group. Andy is recognised by reputable global industry and legal publications as a leader in his field. He was named on "The A-List: Singapore's Top 100 lawyers" by Asia Business Law Journal 2018. In addition, Chambers Asia Pacific notes that Andy is "a well-known IP practitioner who is highlighted for his record of handling major trade mark litigation, as well as commercial exploitation of IP rights in the media and technology sectors. He's been in the industry for a long time and has always been held in high regard. He is known to be very fair and is someone you would like to be in the trenches with you during negotiations." Furthermore, Asian Legal Business acknowledges Andy as a leading practitioner in his field and notes that he “always gives good, quick advice, [is] client-focused and has strong technical knowledge for his areas of practice.” Andy was appointed by the Intellectual Property Office of Singapore (IPOS) as an IP Adjudicator to hear disputes at IPOS for a two-year term from April 2021. He has been an appointed member of the Singapore Copyright Tribunal since May 2010 and a mediator with the WIPO Arbitration and Mediation Center. He is also appointed as a Notary Public & Commissioner for Oaths in Singapore. He previously served on the International Trademark Association’s Board of Directors and was a member of the executive committee.

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Ren Jun Lim is a principal with Baker McKenzie Wong & Leow. He represents local and international clients in both contentious and non-contentious intellectual property matters. He also advises on a full range of healthcare, as well as consumer goods-related legal and regulatory issues. Ren Jun co-leads Baker McKenzie Wong & Leow's Healthcare as well as Consumer Goods & Retail industry groups. He sits on the Law Society of Singapore IP Committee and on the Executive Committee of the Association of Information Security Professionals. He is also a member of the Vaccines Working Group, Singapore Association of Pharmaceutical Industries, a member of the International Trademark Association, as well as a member of the Regulatory Affairs Professionals Association. Ren Jun is ranked in the Silver tier for Individuals: Enforcement and Litigation and Individuals: Prosecution and Strategy, and a recommended lawyer for Individuals: Transactions by WTR 1000, 2020. He is also listed in Asia IP's Best 50 IP Expert, 2020, recognised as a Rising Star by Managing IP: IP Stars, 2019 and one of Singapore's 70 most influential lawyers aged 40 and under by Singapore Business Review, 2016. Ren Jun was acknowledged by WTR 1000 as a "trademark connoisseur who boasts supplementary knowledge of regulatory issues in the consumer products industry." He was also commended by clients for being "very responsive to enquiries and with a keen eye for detail, he is extremely hands-on. His meticulous and in-depth approach to strategising is key to the excellent outcomes we enjoy."

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