Competition Bureau clarifies expectations around new greenwashing rules

GATINEAU, Que. — The Competition Bureau has released draft guidelines that aim to clarify expectations around new greenwashing rules.

The new laws that were passed in June require companies to be able to substantiate environmental claims they make.

The rules have sparked concern and confusion as to how far they go, and what businesses are able to say, leading the bureau to accelerate its release of the guidance it’s now seeking feedback on.

The bureau warns that overall, it will have to see how the courts interpret many of the concepts in the new provision, but in the meantime it will rely on the “ordinary meaning” of the words used.

For businesses that make claims about the environmental benefits of a product, the bureau says it will have to establish that the company publicly made the claims for promotional purposes, but then it will be up to the company to prove the claims were based on adequate and proper testing.

Similarly, the bureau will have to prove that a company made public claims to promote a product or business interest, such as that it’s on track to reach net-zero emissions, but it will be up to the business to prove the claim was based on adequate and proper substantiation in accordance with internationally recognized methodology.

The bureau says it will generally consider that such methodology meets the mark if it is recognized by at least two countries.

This report by The Canadian Press was first published Dec. 23, 2024.

The Canadian Press