Canadians are seeking environmentally-friendly products and services due to concerns about the environment and climate change. However, misleading environmental ads and claims, known as greenwashing, can mislead consumers and hinder competition and innovation.
Bill C 59 - The Fall Economic Statement Implementation Act, 2023 took effect on June 20, 2024, which included changes to the Competition Act specifically to target greenwashing. Businesses are now required to have testing or substantiation, with internationally recognized methodology, to support certain environmental claims.
The Competition Bureau is assessing the impact of these requirements. It expects to provide guidance that will offer transparency and predictability for the business and the legal communities in the enforcement of the law. On July 22, 2024, the Competition Bureau launched a public consultation on these new provisions aimed at greenwashing, which will inform its future enforcement guidance about environmental claims.