Author
Ms Thao Ly
Organisation/Institution
Foreign Trade University
Country
VIETNAM
Panel
Environmental Law
Title
Anti-greenwashing laws in the EU and the US: Recommendations for Vietnam
Abstract
In the era of tightened ESG practices, greenwashing - the dissemination of misleading environmental claims - has posed a threat to the authentic sustainable development, eroding the trust of consumers and shareholders alike. In response, the European Union (EU) and the United States (US) have taken the lead by introducing comprehensive legal frameworks to address greenwashing, namely the EU Green Claims Directive and the US Federal Trade Commission’s Green Guide. By contrast, Vietnam’s regulations remain fragmented and underdeveloped, with no legislation recognising greenwashing as a distinct offence. This paper therefore aims to examine and compare the anti-greenwashing legal frameworks of the US and EU, and to propose practical recommendations for Vietnam. The main methodology used is comparative law, using qualitative legal analysis, examining statutory provisions, enforcement mechanisms, and recent policy developments. The findings highlight notable differences in enforcement approaches between the EU and the US. The EU’s ex-ante, evidence-based approach serves as a preventive mechanism, tackling greenwashing at its root by requiring proof prior to disclosure. In contrast, the US’s ex-post, case-based system promotes flexibility and accountability through targeted investigations, corrective actions, and sanctions. Despite their respective strengths, both frameworks face limitations, as EU regulations can be rigid and cost-intensive while the US approach may lag in comprehensively addressing falsified environmental claims. These insights inform a hybrid policy direction for Vietnam, including clearer legal definitions, robust verification standards, and stronger enforcement mechanisms. Such reforms would enhance transparency, consumer protection, and corporate accountability, contributing to a credible governance framework aligned with net-zero commitments. Keywords: ESG, Environmental Law, EU , US, Vietnam, Anti-greenwashing Laws.
Biography
Ms. Thao Ly is a researcher at the Foreign Trade University, Ho Chi Minh City Campus, Vietnam. Her academic interests lie at the intersection of international economic law, environmental governance, and corporate sustainability regulation. Her current research focuses on sustainability law, ESG governance, and corporate environmental accountability, with a particular focus on anti-greenwashing regulation and legal adaptation in emerging markets. She aims to contribute to the development of policy and legal frameworks that promote transparency, responsible business conduct, and alignment with global sustainability standards.
