Competition Bureau Releases Long-Awaited - If Provisional - Greenwashing Guidelines

Important legislative amendments to the Competition Act (the "Act") enacted in June 2024 have had a significant impact on the legal and enforcement risks associated with environmental claims in Canada, as reported in our last bulletin on the subject. In late December 2024, the Competition Bureau ("Bureau") released draft enforcement guidelines regarding these amendments, which we outline and explain below.

The recent amendments expanded the Act's civil deceptive marketing regime, codifying two additional prohibitions for representations made to the public in relation to the environment: (i) claims concerning a product or service's environmental benefits must be based on an "adequate and proper test"; and (ii) claims with respect to the "benefits of a business or business activity" for the environment must be based on "adequate and proper substantiation in accordance with internationally recognized methodology." In the absence of clear guidance from the Bureau or