Greenwashing And Sanctions Under Turkish Law

I. Introduction

The increasing effects of the global climate crisis, the spread of environmental awareness at the societal level, and consumers’ shift toward sustainable products and services have made environmental, social, and governance (ESG) criteria a fundamental competitive factor in the business world. This transformation in consumer and investor preferences is compelling companies to emphasize their environmental responsibilities and build a “green” brand image. However, this has also paved the way for the rapid spread of deceptive marketing strategies that exaggerate companies’ positive environmental actions or conceal their negative ones, a practice referred to in the literature as “Greenwashing” (Yeşil Aklama / Yeşil Yıkama). The concept was first introduced into the literature in 1986, when environmental activist Jay Westerveld criticized hotels for marketing towel reuse restrictions, implemented as a cost-saving measure, under an environmentalist narrative.

Greenwashing refers to the entirety of strategies in which businesses market actions they do not actually take by exaggerating their environmental responsibilities, where there is a serious inconsistency between the reported conduct and the actual conduct, and which essentially involve an intent to deceive consumers or the public. In other words, greenwashing is the promotion of a service, product, or company through false, undocumented, or misleading claims in order to create a greener image and an environmentally sustainable perception. Although this practice has become almost a trend in business, companies sometimes engage in it deliberately to increase sales; at other times, they may become involved unintentionally and due to lack of knowledge, because they do not fully understand the legal and technical requirements of environmental claims. Regardless of the reason, while greenwashing may increase sales or brand value in the short term, it permanently erodes market trust in the long term and harms corporate integrity.

II. Global Examples of Practice and Scope

Greenwashing is not limited to slogans used in advertisements; it covers a wide range of conduct, from misleading statements in companies’ Environmental, Social, and Governance (ESG) reports to nature imagery on product packaging, from the use of undocumented “eco-labels” to claims of carbon neutrality. Increasing sustainability expectations of investors and regulatory authorities create intense pressure on companies to make extensive ESG disclosures. This leads to a multiplying increase in unverified or unqualified sustainability claims.

Concrete international scandals demonstrating the economic and commercial dimension of greenwashing show how critical the issue has become in terms of legal sanctions:

• Automotive Sector (Dieselgate Scandal): In the scandal that emerged in 2015, it became clear that a major automotive company had marketed its vehicles as environmentally friendly while manipulating emissions tests through software. As a result, the company recalled millions of vehicles and was subjected to heavy sanctions and compensation payments.
• Fast-Moving Consumer Goods / Coffee Sector: A coffee producer faced consumer lawsuits due to misleading claims regarding the recyclability of its product capsules and was required to make payments exceeding 10 million dollars.
• Energy / Oil Sector (Deepwater Horizon): An oil company famous for its renewable-energy-focused advertising campaigns faced major public criticism, boycotts, and costly legal battles following the Deepwater Horizon oil spill disaster.
• Fashion, Banking, and Automotive (EV) Sectors: Fashion brands using sustainable collection labels, exaggerated range/environmental claims by electric vehicle manufacturers, and misleading ESG disclosures presented by banks under the name of “green funds” have also been subject to similar greenwashing scrutiny.

As can be seen, greenwashing entails multi-dimensional risks such as damage to brand reputation, loss of revenue, risk of exclusion from supply chains, loss of consumer trust, difficulty in attracting investors, and costly legal proceedings.

III. Greenwashing And Its Sanctions Under Turkish Law

Although there is not yet a separate law in the Turkish legal system specifically titled “greenwashing,” acts and claims that qualify as greenwashing are subject to various legal, administrative, and criminal sanctions under existing legislation. Greenwashing conduct is primarily assessed under the Consumer Protection Law No. 6502, the Regulation on Commercial Advertising and Unfair Commercial Practices, the Turkish Commercial Code No. 6102 (Unfair Competition), and the Turkish Code of Obligations No. 6098.

1. Consumer Protection Law and Advertising Board Sanctions

The area where greenwashing is most commonly encountered is consumer advertising and statements on packaging. Pursuant to Article 61 of Law No. 6502, commercial advertisements must comply with the principles of honesty and accuracy and must not be deceptive, misleading, or exploit consumers’ lack of experience or knowledge. In addition, Article 62 generally prohibits unfair commercial practices, while Article 63 regulates the procedures and principles concerning the supervision of such practices by the Advertising Board.

The Advertising Board operating within the Ministry of Trade is authorized to investigate advertisements that constitute greenwashing. Pursuant to the Regulation on Commercial Advertising and Unfair Commercial Practices and, in particular, the amendment regulation published in the Official Gazette dated 1 July 2026, environmental claims have been specifically regulated. The amended regulation, with the version of Article 17 planned to enter into force on 1 August 2026, sets out the following matters in summary:

• Environmental claims must be based on objective, scientific, and verifiable information and documents.
  • General and vague expressions such as “environmentally friendly,” “green,” “nature-friendly,” “zero waste,” “carbon neutral,” and “ecological” may not be used in an abstract manner unless they cover the product’s entire life cycle.
  • If only the packaging of a product is recyclable, advertising may not be made in a way that creates the impression that the entire product is environmentally friendly.

Administrative Sanctions that May Be Imposed by the Advertising Board (Law No. 6502, Art. 77):

• Stop Order: Suspension of the publication or implementation of the misleading green advertisement.
  • Corrective Order: Ensuring that the misleading statement is corrected publicly through the same channels.
  • Administrative Fine: High administrative fines, increased annually in line with the revaluation rate, depending on the media in which the advertisement is published (local/national TV, internet, social media, print media). For example, under the legal thresholds for 2026, fines may reach up to 31 million TL for a single national television advertisement violation and 8.6 million TL for an internet advertisement violation.
• 
  Blocking Access: Blocking access to misleading content on the internet.

2. Unfair Competition Sanctions under the Turkish Commercial Code (TCC)

Greenwashing not only deceives consumers; it also disrupts market order by creating an unfair advantage against competitors who genuinely engage in sustainable production. The unfair competition provisions regulated in Articles 54 et seq. of the TCC provide legal protection to competitors and relevant professional associations against businesses engaging in greenwashing.

Pursuant to Article 55/1-a-1 of the TCC, “making false or misleading statements about one’s own personal situation, products, work products, or commercial activity, or placing third parties ahead through such statements” is expressly one of the acts of unfair competition contrary to the rule of honesty. A company presenting itself as sustainable while in fact operating an environmentally harmful production process falls within the scope of this provision.

Actions and Legal Remedies under the TCC:

1. 1. Action for a Declaration that the Act Is Unlawful: A court determination that the greenwashing conduct constitutes unfair competition.
   2. Injunction Action (Prevention of Interference): Stopping and preventing misleading environmental conduct or advertisements.
   3. Action for Material and Moral Damages: Recovery of losses suffered by competitors harmed by unfair competition. Under Article 56 of the TCC, compensation may also include the profits that the unfairly competing business was likely to obtain.
   4. Publication of the Judgment: Publication of the court decision to the public, with the costs borne by the defendant.

3. Sanctions under the Code of Obligations and Consumer Contracts

Where consumers prefer a product solely because they believe it is “environmentally friendly,” “organic,” or “recycled,” and it is then understood that the claim does not reflect the truth, issues of defective performance and deception (fraud) arise:

 Defective Goods / Services (Consumer Protection Law Art. 8 & Defect Provisions of the TCO): A product’s failure to possess the environmental qualities stated on its packaging or in its advertisement renders the product defective. In such a case, the consumer may exercise the rights to withdraw from the contract (refund of the price), request a reduction in the sale price, demand free repair, or replacement with a non-defective equivalent.
Deception (Fraud – TCO Art. 36): If the business intentionally deceives the consumer through green statements, the consumer may declare that they are not bound by the contract and demand a refund of the amount paid, as well as compensation if applicable.

4. Sanctions under Capital Markets Legislation and ESG Reporting

For companies listed on Borsa Istanbul and institutions above a certain scale, the Türkiye Sustainability Standards (TSRS) issued by the Public Oversight Authority (KGK) and the Capital Markets Board’s (SPK) Sustainability Principles Compliance Framework are in force. Misleading information constituting greenwashing in companies’ publicly disclosed ESG reports or annual activity reports constitutes the act of “providing false or misleading information in public disclosure documents” under Article 112 of the Capital Markets Law. This may lead to the personal civil and criminal liability of company executives, administrative fines, and compensation claims by investors.

IV. Conclusion

Greenwashing is a serious source of legal risk in today’s business world, pursued for short-term marketing gains but ultimately threatening brands’ commercial existence, financial integrity, and reputation in the long run. In parallel with increasing global scrutiny and a more conscious consumer base, greenwashing sanctions under Turkish law are also becoming increasingly stringent before the Advertising Board, Commercial Courts, and the SPK.

In order to protect companies from litigation risks, high compensation awards, administrative fines, and irreparable reputational losses in the market, it is essential to take the following strategic steps

All environmental claims used in advertising and marketing should be based on scientific reports and certificates issued by independent and accredited institutions; general expressions such as “climate-friendly” or “completely natural” should be replaced with measurable and concrete data; and ESG reports and green marketing campaigns should be reviewed for compliance with Turkish consumer protection and unfair competition legislation by expert legal professionals before being presented to the public.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.