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ARTICLE · 01 JULY 2024

Clearing The Air: Canada Adopts New Greenwashing Laws Under The Competition Act

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New amendments to the Competition Act in Canada are now in force via Bill C-59 after receiving royal assent on June 20, 2024. Many of these amendments target "greenwashing"...

CanadaEnvironment
Aweis Osman
Aweis Osman
Christopher Oates
Christopher Oates
Melissa Tehrani
Melissa Tehrani
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New amendments to the Competition Act in Canada are now in force via Bill C-59 after receiving royal assent on June 20, 2024. Many of these amendments target "greenwashing" – a common shorthand for misleading environmental claims about products or business practices.

In Canada, greenwashing has been regulated primarily as a form of deceptive marketing, recognized as anti-competitive conduct. As a result, regulatory oversight over greenwashing has come under the purview of Competition Bureau Canada (the "Competition Bureau"). The new amendments to the Competition Act introduce a more targeted prohibition against greenwashing, and expand the means of enforcement as follows:

First, Bill C-59 introduces explicit prohibitions against deceptive environmental claims, requiring that such claims be based on "adequate and proper tests" or "internationally recognized methodologies." While this clarifies that environmental claims must be supported by "adequate and proper"

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