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This question is about greenwashing.
The primary issue with greenwashing is that it's inherently deceptive. There are levels of greenwashing, ranging from overemphasizing how green their products are, to covering up other aspects of the business that aren't environmentally friendly, to outright lying and saying something is green when it isn't sustainable, natural, or recyclable.
It also makes it more difficult for consumers who are trying to primarily spend their money on green products and sustainable processes, as it makes it harder to find products that are truly green. This is especially an issue for those who are just starting to make an effort to buy more natural and sustainable products and may not be sure of what differentiates a truly green product from one that isn't.
Because of that, it can also make it more difficult for companies built from the ground up with the environment in mind to be successful. Consumers may end up purchasing products that aren't really green and not buying the ones that truly are. It also makes it harder for those products to stand out, as the majority of companies are focused on carbon footprints and being "eco-friendly,"

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