Greenwashing and competition: is trust a tangible asset for consumer well-being and the social function of the market?

Abstract

Greenwashing compromises trust in consumer relations, negatively affects environmental preservation and, above all, unbalances the market by creating free barriers. As a market failure, the behavior has been used to raise advantages in a context of consumer ecological awareness. The difficulty of identification, revealed by the loopholes in the inspection, represents a relevant challenge to their confrontation. The investigation questions the potential of trust as a tangential asset for the well-being of the consumer and the balance of the market, based on the hypothesis that the search for a good reputation can drive cultural changes in corporations. To relate greenwashing to competitive law, seek to analyze the possible sanctioning remedies advised by antitrust law. It adopts the deductive method, based on a narrative review of literature, incorporating statistical data to (re)construct relevant critical perspectives. It is confirmed that the phenomenon, accentuating informational asymmetry, generates allocative inefficiency and compromises trust and corporate reputation. Its gravity demands a multidisciplinary response and the adaptation of antitrust authorities as guides of a national policy that integrates economic agents in its formulation. It is confirmed that trust strengthens consumer relations, reduces risks and improves competitiveness, being strategic in building reputation and promoting organizational changes.