Environmentally sustainable (green) products are frequently advertised to consumers, yet it is debatable whether the consumers are aware whether these green labelled products are environmentally friendly or not. Greenwashing is a phenomenon used by companies to sell their products. Through stratified (probability) and purposive and convenience (non-probability) sampling techniques, an online survey was circulated to gather information from 768 participants from the UK, Canada, and Pakistan to determine consumers’ perspectives on subjects including awareness, trust, and effectiveness regarding greenwashed labelled products. The results were tested using the Chi-Square test for ranked data and structural equation modelling (SEM) for ordinal data. The study found that participants ranking themselves High environmentalists in comparison to Low and Moderate environmentalists, despite being skeptical, fall into the trap of identifying greenwashed products as sustainable. It has been proven that greenwashing negatively impacts the green purchasing behavior of the consumers. Participants reported that products are believed to be sustainable due to the overall perception of the product labelled as greenwashed. There is statistical evidence that purchase intent is not affected by greenwashing. It is also reported that younger people in comparison to older people have less trust and often believe greenwashing is problematic. Consumers were found to be vulnerable and more sensitive when their attention was drawn towards greenwashing. There is a need to educate consumers and improve policies to ensure consumers understand the real labels as greenwashed products are used in daily life.