Canada's Greenwashing Crackdown: New Guidelines & Private Right Of Action

The Competition Bureau (the Bureau) recently issued its final guidelines on environmental benefits claims (Guidelines), hot on the heels of its Annual Plan for 2025-2026 which pledged continued efforts to combat misleading environmental benefits claims (greenwashing). The Guidelines respond to the recent amendments to the Competition Act, which now explicitly prohibits greenwashing.

This timely release is particularly significant as it precedes a major shift in the enforcement landscape in Canada. As of June 20, private applicants now have the ability to bring greenwashing complaints directly before the Competition Tribunal if they can show "public interest."

While the Guidelines offer insight into the Bureau's enforcement approach, they are not binding, and some legal uncertainties persist. Businesses must therefore carefully consider how to meet growing consumer demand for environmental action without exposing themselves to legal challenges based on