/>iRecently, the Canadian Competition Bureau published updated guidelines concerning its approach to environmental claims following last year's amendments to Canadian law that specifically targeted greenwashing. These guidelines are not especially surprising--there is a stated focus on four types of claims that will be the subject of enforcement: (1) “false or misleading representations”; (2) “product performance claims”; (3) “claims about the environmental benefits of a product”; and (4) “claims about the environmental benefits of a business or business activity”--all of which are grounded specifically in a statutory provision. The guidelines further identify six principles that companies should abide by in order to avoid prosecution: (1) “Environmental claims should be truthful, and not false or misleading”; (2) “Environmental benefits of a product and performance claims should be adequately and properly tested”; (3) “Comparative environmental claims should be specific about what is being compared”; (4) “Environmental claims should avoid exaggeration”; (5) “Environmental claims should be clear and specific--not vague”; and (6) “Environmental claims about the future should be supported by substantiation and a clear plan.” All of these principles are generally self-explanatory, and should be part of good business practices.
However, more than the specific guidance offered, what is perhaps more significant is that the Canadian Competition Bureau has chosen to issue these detailed guidelines in response to the greenwashing amendments. While the Competition Bureau often issues such guidelines, it does so in circumstances when legal amendments are deemed significant and where enforcement may be considered a priority. This development therefore indicates the extent of the focus on greenwashing by the relevant Canadian regulators.
Recently, the Act was amended to include two new provisions that explicitly address environmental claims. These new provisions build on the provision of the Act that requires that certain claims be evidence-based. The Bureau is therefore taking this opportunity to describe our approach to environmental claims specifically as they relate to the deceptive marketing provisions of the Act.Footnote2 However, readers are reminded that other laws enforced by the Bureau, including the Consumer Packaging and Labelling Act and the Textile Labelling Act, also prohibit certain types of deceptive representations, and may be relevant to environmental claims.
