OTTAWA/TRADITIONAL, UNCEDED TERRITORY OF THE ALGONQUIN ANISHNAABEG PEOPLE — The Canadian Association of Physicians for the Environment (CAPE) and Ecojustice have made a joint submission highlighting substantial gaps in the Competition Bureau Canada’s draft Environmental claims and the Competition Act guidelines.
The guidelines follow amendments to the Competition Act made last summer, which now mandate businesses to conduct testing or substantiation before advertising environmental benefits of their products or business.
While the groups are in favour of the new greenwashing laws, they say the guidelines need more rigour and substance to be truly effective.
The guidelines outline the relevant legal framework and include six principles for compliance. Where the guidelines fall short, the groups argue, is in failing to round out the principles with case studies, examples, considerations, and substantive advice to assist businesses wanting to make legitimate claims that their product or business has an environmental benefit. This is a shift from the Competition Bureau’s more detailed approach in greenwashing guidelines from 2008 (that were archived in 2021) and a marked departure from detailed guidelines currently provided by competition authorities in other jurisdictions like Australia, the Netherlands, and the U.K.
The groups warn that the guidelines also fail to emphasize the fundamental need for green advertising to be based on environmental science. Further, the guidelines neglect to caution businesses that higher standards may be imposed for product or business claims related to dangerous matters like climate change.
CAPE and Ecojustice urge the Bureau to set strong standards that align with international best practices, highlighting that guidelines are necessary to help Canadian companies interpret and comply with this law.
By setting clear, strong, science-based greenwashing standards now, the Competition Bureau can ensure Canadian businesses are able to compete in global markets over the long-term.
CAPE’s Health and Policy Program Manager, Nola Poirier emphasized the need for clear, science-based guidelines: “For far too long, misleading environmental claims from companies that exaggerate or outright lie in their advertising have delayed climate action, impacting on our health through unchecked pollution and escalating climate disasters. The new Competition Act guidelines must prioritize the use of science to effectively stop greenwashing and protect public health. Vague principles without concrete examples and substantive guidance put businesses at risk and leave consumers in the dark about genuine environmental progress. Clear guidelines about truth in advertising ultimately protects everyone.”
Ecojustice finance lawyer, Tanya Jemec shared: “Greenwashing directly threatens so much of what we value in Canada — our environment and biodiversity, our nature and landscapes, our health and well-being, our homes, and our economy. We are counting on the Bureau to set clear, actionable guidelines to tackle greenwashing.
While there has been strong industry pushback to the new greenwashing laws overall, we urge the Bureau to take assurance from international examples in setting guidelines that provide concrete advice and real-world examples on avoiding greenwashing.”
Background
- In March 2023, Ecojustice and the Canadian Association of Physicians for the Environment (CAPE) made recommendations to the federal government that the Competition Act should be modernized to integrate sustainability and tackle greenwashing in response to an open consultation on competition law.
- In November 2023, the federal government introduced Bill C-59, the Fall Economic Statement Implementation Act, 2023, which introduced an amendment to the Competition Act that would require green product claims to be backed up by adequate and proper testing.
- In December 2023, Ecojustice and CAPE, together with Equiterre and the Quebec Center for Environmental Law, proposed amendments to Bill C-59.
- On March 1, 2024, in a letter to the House of Commons Standing Committee on Finance, the commissioner of competition requested studying stronger legal tools, including broadening the law beyond products to include the business as a whole and making it reverse onus, meaning those making claims are responsible for proving that they are true.
- On April 30, 2024, with cross-party collaboration between the Liberals, NDP and Bloc, Bill C-59 was amended by the House of Commons to broaden the scope of environmental claims and to also require adequate and proper substantiation for green claims about businesses and business activities.
- On June 20, 2024, Bill C-59 passed through Parliament and important changes to the Competition Act became law. Bill C-59’s amendments introduced new language to strengthen the rules around false or misleading environmental claims (i.e. greenwashing).
- On September 26, 2024, Ecojustice and CAPE made a written submission to the Competition Bureau proposing a set of recommendations for environmental claims guidelines under the Competition Act.
- On December 23, 2024, the Competition Bureau published the draft Environmental claims and the Competition Act guidelines for a consultation period open until February 28, 2025.
About
The Canadian Association of Physicians for the Environment (CAPE) is a physician-directed non-profit organization working to secure human health by protecting the planet. Since its founding in 1994, CAPE’s work has achieved substantial policy victories in collaboration with many partners in the environmental and health movements. From coast to coast to coast, the organization operates throughout the country with regional committees active in most provinces and all territories.
Ecojustice uses the power of the law to defend nature, combat climate change and fight for a healthy environment. Its strategic, public interest lawsuits and advocacy lead to precedent-setting court decisions, law and policy that deliver lasting solutions to Canada’s most urgent environmental problems. As Canada’s largest environmental law charity, Ecojustice operates offices in Vancouver, Calgary, Toronto, Ottawa and Halifax.
