Greenwashing

Greenwashing is a fraudulent marketing scheme used by companies or organizations to create the appearance of environmental responsibility. This scheme generally involves the exaggeration or contrivance of false “green claims”. These intentionally misleading statements and unsubstantiated assertions form an illusion of sustainability to attract consumers looking to invest in products and services that support the protection and health of our planet.

The U.S. Federal Trade Commission (FTC) Green Guides warn that vague or unofficial environmental claims (such as “eco-friendly” or “green”) are deceptive unless proven to be truthful and backed by evidence. It says in its Federal Register:

“A representation, omission, or practice is deceptive if it is likely to mislead consumers acting reasonably under the circumstances and is material to consumers’ decisions.”

In one study on hotel platforms in Germany and the UK, 59% of respondents said hotels overstate or exaggerate their sustainability efforts, while 49% said they leave out important information. However, this study demonstrates how public perception often equates greenwashing with vague claims and information overload, without truly understanding how to differentiate greenwashing from genuine sustainability efforts.

The Origins of Greenwashing

The concept of Greenwashing first emerged in the 1980s when rising environmental awareness began influencing consumer choices and corporate behavior. The term itself was coined by environmentalist Jay Westerveld in 1986, after observing a hotel on the Fiji Islands encouraging guests to reuse towels “to save the planet.” While marketed as an eco-friendly initiative, it largely reduced operational costs and no further efforts were made toward broader environmental commitments.

This campaign became emblematic of a growing trend where businesses used sustainability buzzwords to gain reputational or financial benefits without making meaningful changes. 

Today, regulatory bodies such as the FTC, the European Commission, the UN, and national consumer protection agencies highlight greenwashing as a major obstacle to consumer trust, fair competition, and real climate action.

Greenwashing in hospitality is primarily centered around psychological appeal. Consumers generally want to feel good about their choices, whether booking a hotel room or exploring stays based on their amenities. Greenwashing encourages emotional satisfaction, sometimes described as a form of “moral licensing.” This creates an opportunity for companies to influence decisions with limited or selective sustainability claims.

For example, when a hotel highlights eco-friendly toiletries or promotes sustainability programs, guests may perceive their stay as more environmentally friendly overall, even if the broader operations are not environmentally responsible.

Greenwashing brands also benefit from the “halo effect” of sustainability. This refers to a cognitive bias where consumers invent an overall positive impression of a company, brand, or product based on its environmental or “green” claims. In practice, when a business advertises one eco-friendly initiative, customers may assume that the entire company is sustainable, overlooking other harmful practices.

Moral licensing, the halo effect, and other tactics blur the line between true and false. This scheme plays with consumers’ trust and purchasing decisions can be swayed by limited or selective statements, making it harder to distinguish between genuine commitments to sustainability and greenwashing schemes.

How to spot greenwashing is a common challenge faced by travelers who struggle to know where true sustainability ends and greenwashing begins. Signals and red flags can help consumers identify when claims may be misleading. Genuine environmental responsibility is built on transparent, verifiable action, while greenwashing thrives on vague promises and selective communication.

Some of these warning signs include generic language such as “eco-friendly” or “green” without context, meaningless imagery of nature, or highlighting a single sustainable function while masking the company’s overall environmental impact.

When numbers are used, measurable and verifiable claims are key. For example, stating that a hotel reduced water consumption by 20% compared to the previous year, or that it sources 80% of its food locally, is far more trustworthy than a generic claim of being “sustainable.”

Furthermore, certifications and third-party audits are one of the best ways to verify the truthfulness of any sustainability claim. Recognized eco-labels, such as credible tourism or green manufacturing certifications, provide independent verification that sustainability standards are being met. As Sustainable Travel International notes, consumers should look for certifications backed by transparent criteria and regular audits, rather than relying on self-declared green branding.

Finally, it’s critical to point out that many hotels may only have one sustainability program or have made minimal progress toward becoming eco-friendly, but are not greenwashing their brand. These are often genuine efforts in the right direction. Greenwashing, on the other hand, plays on real sustainability gains to create a polished but misleading image and exploit consumer trust.

The 7 Sins of Greenwashing

The 7 sins remain a useful set of criteria for spotting greenwashing today. The so-called “Seven Sins of Greenwashing” were developed in 2007 by TerraChoice, a consulting firm specializing in environmental marketing. 

The 7 greenwashing criteria include:

• Hidden Trade-off

A product is promoted for one positive attribute while significant drawbacks are concealed.

• No Proof

Sustainability claims that lack evidence or cannot be verified.

• Vagueness

Vague terms like “natural,” “climate-neutral,” or “environmentally friendly” say little about actual impact unless backed by criteria and evidence.

• Irrelevance

Highlighting a fact that may be true but isn’t actually relevant.

• Lesser of Two Evils

Emphasizing a single benefit while the product’s overall impact remains problematic.

• Worshiping False Labels

Logos create the impression of certification without any independent verification.

• Fibbing

Completely fabricated or demonstrably false sustainability claims.

Examples of greenwashing can be seen in many forms. From greenwashing brands to individual greenwashing products, vague, eco-friendly claims or limited efforts leave guests uncertain about the true nature of these “green” companies. This unscrupulous scheme relies on unverified labels, unclear terms like “natural,” or highlighting a single “green” aspect to create a misleading impression of overall sustainability.

In 2024, for instance, the booking platform Booking.com was forced to halt its “Travel Sustainable” program. Hotels were awarded green leaf badges based on purported sustainability measures, but the Dutch consumer protection authority deemed the program misleading. More than 500,000 properties worldwide had already received the label. For many hotels that invested in the label, the abrupt end meant a loss of trust—and for Booking.com, reputational damage.

How to avoid greenwashing is a challenge faced by producers and consumers alike. It starts with greater awareness and education about what genuine sustainability means and how it should be communicated. Companies should follow clear, recognized guidelines such as the FTC Green Guides or the EU Green Claims Directive, which require transparency and evidence for environmental statements.  

All sustainability claims should be supported by measurable data, verified through independent third-party audits, and reported transparently. Businesses must also avoid vague or unsubstantiated terms like “eco-friendly” or “green” unless these are clearly defined and proven.

ADA Cosmetics stands as a leading example of genuine sustainability in the hospitality and cosmetics sectors, demonstrating how transparency, innovation, and verified environmental action can replace the superficial promises offered by greenwashing marketing campaigns. 

The company’s sustainability approach is rooted in measurable progress and credible certifications, most notably its Cradle to Cradle Certified® Silver status, which confirms that our products are designed with the entire lifecycle in mind. This principle of continuous improvement is reflected in our product lines such as Natural Remedies, The Curious Botanist, Naturals, and Eco by Green Culture, each crafted with biodegradable ingredients and environmentally conscious packaging that meet high performance and aesthetic standards.

Beyond our formulations, ADA Cosmetics advances sustainability through innovative dispenser systems to reduce waste and resource consumption. Our proprietary Refillution system revolutionizes the refill process with hygienic, contamination-proof technology to eliminate single-use plastic bottles, while our SmartCare system combines sleek design with leak-proof, tamper-resistant functionality for long-term, hygienic use. Additionally, through its detailed Sustainability Report, ADA Cosmetics discloses environmental performance data, production standards, and continuous progress toward circularity. 

By pairing verified sustainability credentials with forward-thinking product design, we prove that environmental responsibility in hospitality is not a marketing claim, it is a measurable, verified, and enduring commitment toward a brighter future.