The Canadian government recently introduced changes to the Competition Act which will have a substantial impact on sustainability claims made by Canadian companies. These changes will force many companies to revisit how they promote their products in terms of sustainability in light of the substantial penalties that can be levied by the Competition Bureau. tc) to bring complaints to the Competition Bureau on these issues.
On July 22, 2024, the Competition Bureau launched a public consultation to seek comments from the Canadian public on specific issues related to the new greenwashing provisions of the Competition Act .
This consultation will help the Bureau develop guidance on the application of the law relating to environmental declarations, particularly with respect to its interpretation of the new provisions.
The Bureau is particularly interested in hearing about:
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What kinds of claims about environmental benefits are commonly made in the marketplace about businesses or business activities? Why are these claims more common than others?
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Are there certain types of claims about the environmental benefits of businesses or business activities that are less likely to be based on “adequate and proper substantiation in accordance with internationally recognized methodology”? Is there something about those types of claims that makes them harder to substantiate?
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What internationally recognized methodologies should the Bureau consider when evaluating whether claims about the environmental benefits of the business or business activities have been “adequately and properly substantiated”? Are there limitations to these methodologies that the Bureau should be aware of?
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What other factors should the Bureau take into consideration when it evaluates whether claims about the environmental benefits of businesses or business activities are based on “adequate and proper substantiation in accordance with internationally recognized methodology”?
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What challenges may businesses and advertisers face when complying with this new provision of the law?
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What other information should the Bureau be aware of when thinking about how and when to enforce this new provision of the law?
Read the press release.
The Canadian Apparel Federation has for over five years requested that the Canadian government provide guidance around environmental claims. As a result, we welcome the announcement made by the Competition Bureau, and have requested to be involved in the process going forward.
CAF members with an interest in this file should contact Bob Kirke, CAF Executive Director at: bkirke@apparel.ca. We are also discussing with law firms the possibility of a webinar on these and other important changes to the Competition Act.