Canada Increasing Regulation Of Environmental Claims And Greenwashing

On June 20, 2024, the Canadian federal government enacted Bill C-59, amending the Competition Act by granting royal assent to Bill C-59.

What is Greenwashing?

"Greenwashing" is when a business, intentionally or inadvertently, makes false or misleading claims about the environmental or sustainability attributes of its business, products or services. Greenwashing has the effect of deceiving or influencing consumers into purchasing from "green" businesses or to purchase "green" products or services.

How Might You Be Liable?

The primary source of liability in the area of greenwashing in Canada at this time is the Act which prohibits the making of "false or misleading" representations to the public. The amendments to the Act expressly target greenwashing claims instead of relying on the Act's existing (and more general) false or misleading claims provisions. These misleading representations can be statements, warranties or guarantees and can be in written,