Greenwashing Practices: Legal Challenges and Economic Implications in the Context of European Integration

Abstract

Corporate communication that inflates or misrepresents an organization's environmental responsibility is known as "greenwashing." The study analyzes this phenomena from a legal-economic perspective, assessing Moldova's changing legal system and how well it complies with EU sustainability and consumer protection regulations. This paper aims to explore the phenomenon from a legal perspective, focusing on the Republic of Moldova’s current regulatory framework and its alignment with European Union standards. The study seeks to identify the gaps and challenges in addressing greenwashing within the context of the country’s progressive integration into the EU single market. The research is based on a comparative legal analysis, examining relevant Moldovan legislation, EU directives, and case law concerning unfair commercial practices and consumer protection. Additionally, the study reviews international best practices, including regulatory approaches from the United States and selected EU member states, to provide a broader understanding of enforcement mechanisms. The findings indicate that while Moldova has made significant steps toward harmonizing its consumer protection and advertising legislation with EU requirements, enforcement mechanisms remain underdeveloped. The absence of specific provisions targeting environmental claims creates a legal vacuum that may enable companies to engage in deceptive marketing without facing significant consequences. Moreover, limited consumer awareness and insufficient monitoring capacity further weaken the effectiveness of existing laws. The paper concludes by proposing legal and policy recommendations, including the introduction of explicit legal definitions of greenwashing, enhanced sanctions for misleading environmental claims, and improved inter-agency cooperation. These measures aim to strengthen the legal framework, foster consumer trust, and encourage genuine corporate sustainability initiatives, ultimately contributing to the country’s competitiveness in the knowledge economy. JEL: K32, K33, M14, Q56