RCC submission to greenwashing guidance consultation

In December 2024, the Competition Bureau released draft guidance on greenwashing for consultation. RCC submitted comments last week with several recommendations to improve the final guidance.

Background: Greenwashing is a term used to describe false or misleading environmental claims. In Spring 2024, federal Bill C-59 amended the Competition Act, which regulates false and misleading claims generally, by adding explicit new requirements on greenwashing. The Act now requires that claims about the environmental benefits of a product be based on adequate and proper testing. It also requires that claims about the environmental benefits of a business or business activity be based on adequate and proper substantiation in accordance with an internationally recognized methodology.

Following a broad consultation on the new provisions and some initial environmental claims guidance, the Bureau released its draft greenwashing guidance. The draft guidance is principles-based and high level, using simple examples and FAQs to illustrate certain points. In our comments, RCC supported the level of flexibility the guidance provides, while seeking clarity and making suggestions on a few key points of particular interest to retailers. For more information, see the draft guidance and RCC’s submission below. RCC continues to monitor the development of these new greenwashing rules.

Draft Competition Bureau greenwashing guidance

RCC February 2025 comments on draft greenwashing guidance

RCC Fall 2024 greenwashing submission on applying the new provisions

Legal background on C-59 environmental amendments: McCarthys