Guidelines for Eliminating Deceptive Environmental Claims Announced by Competition Bureau
Updated Article:
Greenwashing Crackdown Intensifies in Canada: A Look at the New Anti-Greenwashing Guidelines
Canada is tightening the screws on businesses that make misleading green claims, with the Competition Bureau releasing its final anti-greenwashing guidelines after considering feedback from more than 400 responses.
The bureau notes that some suggestions aren't reflected in the final guidance, such as the idea that the guidelines should spell out specific environmental claims businesses can make. Amendments to the Competition Act, passed in June 2024, don’t include such rules. Instead, businesses can make whatever environmental claims they like, as long as they aren’t false or misleading, and they have enough evidence to back them up.
The bureau stresses that assessing claims involves looking beyond the literal wording to the general impression created by the advertisement as a whole. This includes the impact of words, images, and layout.
Greenwashing concerns have been raised in various sectors, with energy companies like the Pathways Alliance drawing criticism. The alliance, which plans to capture and store carbon dioxide emissions from oil sands operations, removed its website and social media content shortly after the law passed, citing uncertainty about the rules. Critics argue the alliance's net-zero claims didn’t pass muster due to the new rules that make greenwashing abundantly clear.
The new Competition Act provisions require that companies’ environmental claims be based on "adequate and proper testing" and "proper substantiation in accordance with an internationally recognized methodology."
While the draft guidelines raised questions about what constitutes an internationally recognized methodology, the final guidelines state that it would likely meet the criteria if it were recognized in two or more countries, not necessarily by those countries' governments.
The Competition Bureau has already taken action against coffee-pod maker Keurig and automaker Volkswagen for deceptive marketing practices, which can result in fines of $10 million or more. The new guidelines aim to protect consumers from false environmental claims and promote transparency in business practices.
Critics argue the laws unfairly silence Canadian companies from showcasing their environmental performance and economic contributions. Some claim the provisions mirror securities law but should have a distinction between the two. The government maintains that the protections afforded to consumers under the act should not be limited to those in capital markets.
This report by The Canadian Press was first published June 5, 2025
The Canadian Press
Incorporated Enrichment:- Under the new guidelines, businesses must substantiate their environmental claims with evidence based on internationally recognized methodologies [1], ensuring that claims are grounded in robust and widely accepted scientific or technical standards.- While draft guidelines raised questions about what constitutes an internationally recognized methodology, the final guidelines state that it would likely meet the criteria if it were recognized in two or more countries, not necessarily by those countries' governments [5].- Claims about future environmental targets require substantiation in the form of a concrete, realistic, and verifiable plan, with proof of concrete steps to achieve these goals [1][4].- These guidelines apply to all businesses, including small businesses, charitable and non-profit activities, and foreign businesses marketing in Canada. There is no exemption based on business size [1].
- The Competition Bureau's new anti-greenwashing guidelines in Canada require businesses to substantiate their environmental claims with evidence based on internationally recognized methodologies, ensuring that claims are grounded in robust and widely accepted scientific or technical standards.
- While draft guidelines raised questions about what constitutes an internationally recognized methodology, the final guidelines state that it would likely meet the criteria if it were recognized in two or more countries, not necessarily by those countries' governments.
- Claims about future environmental targets require substantiation in the form of a concrete, realistic, and verifiable plan, with proof of concrete steps to achieve these goals, as outlined in the new guidelines.
- These guidelines apply to all businesses, including small businesses, charitable and non-profit activities, and foreign businesses marketing in Canada. There is no exemption based on business size.
- The new guidelines aim to protect consumers from false environmental claims and promote transparency in business practices, with the Competition Bureau already taking action against companies like Keurig and Volkswagen for deceptive marketing practices under the updated Competition Act.
