As the demand for eco-friendly products continues to rise, consumers face an increasingly complex marketplace inundated with various green labels and environmental claims. This research paper explores the critical issue of consumer awareness and understanding of eco-friendly product claims, drawing insights from a thorough literature review and secondary data analysis. The study begins by examining existing literature on consumer perceptions of green labels, investigating the factors that influence comprehension and skepticism. Through a comprehensive analysis of secondary data, including market trends and consumer surveys, the research identifies patterns in consumer behavior concerning the interpretation and trustworthiness of eco-friendly claims on product labels. The findings suggest that despite the growing interest in sustainable consumption, consumers exhibit varying degrees of awareness and understanding when it comes to decoding green labels. The literature review highlights gaps in consumer knowledge, emphasizing the need for improved education and communication strategies in the realm of eco-friendly product labeling. Implications of this research extend to both consumers and businesses. For consumers, increased awareness and understanding of green labels can empower more informed and sustainable purchasing decisions. On the business front, a nuanced understanding of consumer perceptions can guide companies in developing clearer and more transparent eco-friendly labeling strategies.

KEYWORDS: Greenwashing, Consumer Awareness, Eco-Friendly Products, Transparent Labeling.