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Competition Bureau Finalizes Anti-Greenwashing Guidelines

Businesses are now required to substantiate environmental assertions with adequate testing under internationally recognized methodologies.

Overview

  • Released June 5 after two consultation rounds and more than 400 submissions, final guidance outlines how companies can comply with new greenwashing provisions under the Competition Act.
  • The guidelines stipulate that environmental claims must be truthful, not misleading, and backed by sufficient testing or substantiation following global standards.
  • The Bureau declined to specify particular claims or timing rules, noting interpretation of the law remains with courts and the Competition Tribunal.
  • Several firms, including RBC and the Canada Pension Plan Investment Board, have already scaled back or removed public environmental commitments to avoid potential penalties.
  • Later this month private parties will gain the right to lodge greenwashing complaints directly with the federal Competition Tribunal.