Legal Compliance in Green Marketing Strategies in Indonesia’s FMCG Industry

Abstract

Growing global environmental pressure has significantly influenced consumer behavior, with a rising preference for environmentally friendly products and brands. In response, industries—particularly the fast-moving consumer goods (FMCG) sector—have adopted green marketing, not only as a tool for competitive differentiation but also to meet societal and regulatory expectations. However, the proliferation of green marketing in Indonesia faces substantial legal challenges, including the risk of greenwashing—where companies falsely portray themselves as environmentally responsible. This undermines consumer trust and exposes firms to reputational and legal risks. A key barrier to effective legal compliance in Indonesia is the fragmented nature of regulations and the lack of clear, enforceable standards. This study employs qualitative analysis to examine the legal challenges confronting green marketing practices within the Indonesian FMCG industry. It introduces a hierarchical legal compliance framework that maps interrelated layers of legal obligations—spanning consumer protection, environmental law, and advertising ethics—and illustrates how these domains interact. The aim is not only to improve regulatory adherence but also to deepen the understanding of Indonesia’s green marketing legal landscape. The study contributes theoretically by developing a structured framework for legal compliance, highlighting interdependencies across legal domains, and offering practical insights for policymakers and businesses to foster more credible and enforceable sustainability practices in the FMCG sector.