Canada's New Greenwashing Laws Enacted

On June 20, the federal government passed amendments to the Competition Act (Act) that target "greenwashing" (i.e., making untested or unsubstantiated claims about the environmental benefits of a product or business). These amendments create substantial uncertainty, risks and potential liability for businesses, which could undermine the environmental initiatives of Canadian corporations. In the wake of the amendments, businesses should urgently review their existing public representations and implement strict compliance programs to minimize the risk of attracting enforcement action or becoming a target of private greenwashing litigation.

The greenwashing changes were contained in Bill C-59, omnibus legislation that implemented a variety of amendments by the federal government arising from its Fall Economic Statement released in November 2023. For further information on the sweeping changes to the Act contained in Bill C-59, see our June 2024 bulletin Canadian