GREENWASHING AMENDMENTS TO THE CANADIAN COMPETITION ACT
‘Greenwashing’ refers to the practice of making false, misleading or unsubstantiated claims about the environmental or climate benefits of a business’s operations, products or services. Last June, Bill C-59 received royal assent, introducing changes to the Canadian Competition Act. The bill modernises the Competition Act and grants the Competition Bureau (CB) increased powers to regulate greenwashing. Starting on 20 June 2025, it will also allow private parties, both individual and groups, to apply directly to the Competition Tribunal for leave to make an application for deceptive marketing practices, eliminating the need to involve the CB in such matters. Such applications will be allowed to be based on environmental or climate claims made as of 20 June 2024, the date Bill C-59 became law in Canada. Consequently, beginning in the summer of 2025, the competition bar expects a slew of greenwashing court challenges from environmental defence organisations.
Since the industrial revolution, human activities have led to higher concentrations of atmospheric greenhouse gases, resulting in climate change. The public and national governments must take action to address the impacts of these changes. Amid these shifts, businesses are also working to adapt to the evolving landscape and changing consumer preferences. In recent years, many companies have revamped their marketing strategies to emphasise the environmentally friendly features or performance of their products and services. Unfortunately, some have made bold claims in their marketing that simply do not hold up to scrutiny.
Jan-Mar 2025 Issue
Miller Thomson LLP