Increased "Green" Advertising Risks Under Canada's Amended Competition Act

In Canada, advertising campaigns that feature "green" environmental claims are widely used to appeal to consumers' growing concern for the environment and demand for companies to establish environmentally friendly practices. However, environmental commitments and related advertising claims that companies make can prove to be a double-edged sword if not properly expressed or executed.

As detailed in our previous article, recent amendments to the federal Competition Act (the "Act") have significantly increased the risks associated with greenwashing in Canada – a practice that is generally characterized by making false, misleading, overstated or unsubstantiated environmental advertising claims. On June 20, 2024, new provisions were added to the Act that explicitly target greenwashing. The new greenwashing provisions were introduced alongside a number of other considerable recent amendments to the Act, including amendments with respect to available penalties and