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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.

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Some companies and environmental groups wish the Competition Bureau could offer more detail and practical advice on how to comply with the law.
The government's Competition Bureau website is pictured on a mobile phone and laptop screen in Ottawa on Monday, Oct. 2, 2023. THE CANADIAN PRESS/Sean Kilpatrick

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.