Canada News Centre
05 Jun 2025

June 5, 2025 - GATINEAU (Quebec), Competition Bureau

For a long time, the Competition Act has included provisions that prohibit businesses from engaging in misleading advertising and deceptive marketing practices when promoting their products or business interests.

In June of 2024, new sections were added to the Act. These new provisions require that businesses have evidence to back up certain environmental claims.

In July of 2024, the Competition Bureau launched the first phase of consultation to gather insights from Canadians on specific questions related to the new greenwashing provisions of the Act.

This winter, the Bureau conducted a second phase of consultation to seek feedback on its proposed guidelines. The guidelines were designed to help businesses ensure compliance with the Competition Act when making environmental claims.

The Bureau carefully considered all of the over 400 submissions collected from both consultations. While a lot of the feedback in the submissions is reflected in the final guidance, some is not. The following provides information about a few common themes that did not make their way into the document, as well as the Bureau's reasons for not including them.

The scope of the guidance

We heard that the guidelines should tell businesses exactly what environmental claims they can make in their marketing material, and when they can make them. However, the Act does not create rules about when a particular environmental claim can be made to the public. Instead, the Act allows businesses to make whatever environmental claims they wish, as long as those claims are not false or misleading, and as long as those claims are adequately and properly tested or substantiated where required. This requires an assessment not only of the literal wording of a claim, but also of the general impression created by the advertisement as a whole, including the words, images and layout.

The Bureau's role in the legal system

Some people advised that the Bureau should act beyond its authority, such as repealing or delaying the amendments. It is important to note that Parliament is responsible for creating legislation such as the Competition Act, while the Bureau's role is to enforce the laws within its mandate, including those prohibiting deceptive environmental claims.

Some also encouraged the Bureau to take on the role of gatekeeper for those applying for private access to challenge certain types of anti-competitive conduct. This is, however, the responsibility of the Competition Tribunal.

Finally, some suggested that the Bureau should interpret the new provisions rather than deferring to the courts. However, it is the role of the courts to interpret the law, including the new provisions of the Act.

The impact of the guidance on securities-related claims

Some people said that the Bureau should interpret the Act the same way many securities laws are enforced. However, not only are the requirements of securities laws different from those of the Act, but so are the objectives.

The deceptive marketing practices provisions of the Act are intended to protect consumers of all kinds from deceptive advertising, whereas securities law is specifically intended to protect current and potential securities investors. In the Bureau's view, the protections afforded to ordinary consumers under the Act should not be limited to the protections afforded to people who are seeking to invest in capital markets.

Final guidance

The Bureau greatly appreciates all the thoughtful input received in both rounds of consultation.

For further details, we invite you to consult our final guidance on Environmental Claims and the Competition Act.