Anti-Greenwashing Amendments to the Competition Act

Introduction

Greenwashing, or the intentional practice of misleading consumers to think that a business or practice is more environmentally sustainable than it is in reality. In general, making false or misleading statements is controlled through Acts prohibiting these types of representations to the public. Certain recent amendments to Canada’s Competition Act through Bill C-59 aim to regulate greenwashing to a higher degree. 

The Competition Act and Bill C-59

The 2024 Bill C-59 amends the existing Canadian Act called the Competition Act. In the case of businesses who try to make claims about being sustainable, these amendments essentially require some form of evidence to support these claims. This helps to fight greenwashing, making it easier to sue companies who break these new regulations, and encourages companies to be more truthful about their claims.

USA Policies Fighting Greenwashing

The USA has similar policies against misleading statements in general, which can lead to lawsuits against companies being filed. An example of this type of lawsuit is the 2023 lawsuit against Nike for exaggerating the sustainability of their products (GREENWASHING: The Beginning or End of an Era of Environmental Deception?, n.d.). 

Conclusion

These policies are important to institute and enforce, as they prevent companies from making misleading statements, and they can hold them accountable if they do continue to make these types of statements. Greenwashing can greatly influence consumer opinions, making them think they are making decisions that have a positive impact, when in reality this may not be the case, or the impact may be significantly smaller than they expected. Transparency is very important between businesses and consumers when it comes to matters that can influence consumer decisions.

References

Susan. (2024, August 26). Greenwashing and Canada’s increased regulation of environmental claims: the latest amendments to the Competition Act. McMillan LLP. https://mcmillan.ca/insights/greenwashing-and-canadas-increased-regulation-of-environmental-claims-the-latest-amendments-to-the-competition-act/

GREENWASHING: the beginning or end of an era of environmental deception? (n.d.). Georgetown Environmental Law Review | Georgetown Law. https://www.law.georgetown.edu/environmental-law-review/blog/greenwashing-the-beginning-or-end-of-an-era-of-environmental-deception/

Legislative Services Branch. (2023, December 15). Consolidated federal laws of Canada, Competition Act. https://laws-lois.justice.gc.ca/eng/acts/c-34/index.html

McGowan, J. (2024, March 29). EU greenwashing law is warning to US companies to be diligent in environmental claims. Forbes. https://www.forbes.com/sites/jonmcgowan/2024/01/23/eu-greenwashing-law-is-warning-to-us-companies-to-be-diligent-in-environmental-claims/

Public consultation on Competition Act’s new greenwashing provisions. (2024, July 22). https://competition-bureau.canada.ca/how-we-foster-competition/education-and-outreach/public-consultation-competition-acts-new-greenwashing-provisions