Canadian Competition Act Amendments for Environmental Claims

Due to growing concerns around the environment, climate changes and claims around environmental benefits for products, The Government of Canada recently amended the Competition Act. The amendments, which went into effect on June 20, 2024, are aimed at preventing greenwashing and claims about environmental benefits that are not substantiated by third-party testing or internationally recognized methodology.

The decision was made in support of increasing concerns from Canadians regarding the environment and climate change and their desire for products and services that are sustainable or “green.”

The response to consumer demand has increased, too, along with false or misleading environmental ads or claims, fueling a global greenwashing issue. Greenwashing occurs when manufacturers or services overstate or otherwise misrepresent the environmental impact of their products or activities.

The Competition Bureau takes environmental claims seriously and will take action to combat the issue under the following Acts:

• Competition Act,
• Consumer Packaging and Labeling Act
• Textile Labeling Act.

The Competition Bureau can take actions against false, misleading or unsubstantiated environmental claims accordance with the laws they enforce.

Utilizing third-party certifications and validations

Certifications and verifications from neutral testing providers can help manufacturers and retailers demonstrate their product’s sustainability claims and communicate them to consumers, suppliers, and investors.

UL Solutions offers a variety of global environmental and sustainable certifications, such as the UL ECOLOGO Certification, UL GREENGUARD Certification and verification programs developed in accordance with applicable ISO standards covering various products and sustainability attributes. With some of the most recognized and referenced third-party certifications and criteria, our services can help Canadian manufacturers and retailers' market sustainable claims backed by proof. Our sustainability marks help consumers, suppliers and investors identify products with sustainability features they can rely on. Our credible, independent certifications and validations send a signal that serves as a sustainability seal of approval to stakeholders.

Sources

Environmental claims and greenwashing

Guide to the June 2024 amendments to the Competition Act