Enforcing greenwashing the right way
The CBA’s Competition Law and Foreign Investment Review Section urges the Bureau to prioritize education on compliance with new greenwashing provisions
In a nutshell
The Competition Bureau should take a balanced approach to enforcing the new provisions under the Competition Act to ensure businesses are not discouraged from taking meaningful environmental action while maintaining transparent communication with consumers, regulators and other stakeholders.
To that end, the CBA Section recommends that the Bureau begin by educating the business and legal communities and clarify several terms.
Environmental claims regarding product benefits
The CBA underscores the need for clearer definitions of terms surrounding environmental claims manufacturers often make about their products. For instance, we should have a better idea how the proposed creation of an internationally recognized methodology (IRM) standard would differ from the substantiation approach taken by other Canadian regimes and the regimes of major trading partners.
A lack of clarity on IRM standards could deter businesses from investing in Canada or launching environmentally beneficial products. The CBA urges the Bureau to interpret IRM requirements in ways that promote truthful, transparent, and consumer-focused environmental claims.
Environmental claims regarding business activities
The new provisions also apply to claims businesses make about their environmental initiatives. These claims must now be substantiated using internationally recognized methodologies.
The CBA encourages the Bureau to clarify the scope of claims covered under these measures and provide guidance on applying the diligence defense under Section 74.1(3) of the Act.
Another area of concern relates to claims that depend on inputs such as packaging or shipping. According to the submission, the Bureau should confirm that businesses can rely on expert advice or representations from suppliers when making such claims. This flexibility would help companies navigate complex supply chains while remaining compliant.
Historical claims
The CBA Section also highlights the challenges of managing historical representations—statements made at a specific time that may later become outdated but still hold value for the public.
The Bureau should offer guidance on when a historical claim might be treated as a “continuing representation” that could attract liability. The CBA suggests distinguishing “archived” representations from active ones, as the Bureau does with its own superseded guidance documents.
Read the submission.
