Legal Liability for Greenwashing in Light of Consumer Protection and Sustainable Investment

Abstract

This study addresses the phenomenon of greenwashing as a contemporary legal challenge affecting market integrity and the transparency of sustainable investment in Algeria. The research problem lies in how to confront these misleading practices in the absence of an explicit legislative provision criminalizing them, despite the existence of general rules within consumer protection and competition laws that can be inferred to deter such behavior. The study concludes that it is necessary to adopt a dual approach to liability combining civil compensation to redress damages suffered by consumers and competitors, and criminal deterrence to protect the economic and environmental public order, while emphasizing the importance of the integration of roles between regulatory bodies and consumer protection associations in uncovering false claims. The study concludes with a recommendation that the Algerian legislator introduce specific provisions criminalizing greenwashing and obliging institutions to adhere to international standards to ensure the credibility of environmental data, thereby achieving an effective balance between freedom of economic initiative and the consumer’s right to truthful information.