Competition Bureau Launches Greenwashing Consultation Period

Overview

Yesterday, the Competition Bureau launched a public consultation period on specific questions related to enforcement of the newly enacted greenwashing provisions introduced to the Competition Act.

Greenwashing provisions to the Competition Act were enacted via Bill C-59, Fall Economic Statement Implementation Act, 2023, which received royal assent on June 20, 2024.

The new legislative provisions require businesses to conduct “adequate and proper tests” for environmental claims on products or “adequate and proper substantiation in accordance with internationally recognized methodology” for environmental claims on a business or its activities. Failure to do so could result in severe reputational and financial penalties.

There remains significant ambiguity on how the standards laid out above will be interpreted by the Competition Bureau. The consultation launched yesterday seeks to inform the development of guidance and enforcement by the Competition Bureau on the new requirements.

Competition Bureau Consultation Questions

The Competition Bureau is specifically requesting feedback to the following questions, which relate to statements, warranties or guarantees of a product or service’s environmental benefits:

• What kinds of claims about environmental benefits are commonly made about products or services in the marketplace? Why are these claims more common than others?
• Are there certain types of claims about environmental benefits of products or services that are less likely to be based on adequate and proper testing? Is there something about those types of claims that makes them harder to test
• What should the Bureau consider when it evaluates whether testing to support claims about the environmental benefits of products or services is “adequate and proper”?
• What challenges may businesses and advertisers face when complying with this provision?
• What other information should the Bureau be aware of when thinking about how and when to enforce this provision?

The Competition Bureau has also requested feedback on the new provision of the law relating to representations made about environmental benefits of businesses and business activities.

• What kinds of claims about environmental benefits are commonly made in the marketplace about businesses or business activities? Why are these claims more common than others?
• Are there certain types of claims about the environmental benefits of businesses or business activities that are less likely to be based on “adequate and proper substantiation in accordance with internationally recognized methodology”? Is there something about those types of claims that makes them harder to substantiate?
• What internationally recognized methodologies should the Bureau consider when evaluating whether claims about the environmental benefits of the business or business activities have been “adequately and properly substantiated”? Are there limitations to these methodologies that the Bureau should be aware of?
• What other factors should the Bureau take into consideration when it evaluates whether claims about the environmental benefits of businesses or business activities are based on “adequate and proper substantiation in accordance with internationally recognized methodology”?
• What challenges may businesses and advertisers face when complying with this new provision of the law?
• What other information should the Bureau be aware of when thinking about how and when to enforce this new provision of the law?

Next Steps

The Competition Bureau is accepting submissions on the new greenwashing provisions until September 27, 2024. Submissions can be made through email using this link or by mail at:

Deceptive Marketing Practices Directorate

Competition Bureau

50 Victoria Street

Gatineau, Quebec

K1A 0C9

It is important to note that each submission received by the Competition Bureau will be published on the Bureau’s website, unless otherwise requested.