On October 23, 2026, the Competition Bureau (the “Bureau“) released updated guidelines (the “Guidelines”) to assist with the interpretation of recent amendments made to the Competition Act R.S.C. 1985, c. C-34. (the “Act“) concerning environmental claims. These claims can include statements related to a product’s impact on the environment. When those statements are false, misleading or not substantiated, the practice is known as “greenwashing”. This is an important issue for many businesses as the public pays closer attention to corporate responsibility.
In Canada, the Bureau is responsible for administering and enforcing the Act, including provisions relating to deceptive marketing practices and misleading advertising. The Bureau takes a broad view of what it considers as an environmental claim: it includes any representation related to the environment that is made for the purpose of promoting a product or business interest.
The Guidelines build on those previously published on June 5, 2025 (the “2025 Guidelines”), offering an increasingly comprehensive overview of the legislation’s application to environmental claims, compliance advice for businesses, and answers to frequently asked questions. The Guidelines’ commentary is also updated to reflect the influence of Bill C-15 (the Budget Implementation Act, 2025, No. 1) on environmental claims. Although similar in form to the 2025 Guidelines, the Bureau has used the Guidelines to set out its approach to environmental claims specifically as they relate to the Act’s deceptive marketing provisions.
On June 20, 2024, Parliament introduced two amendments aimed specifically at certain environmental benefit claims. These amendments reflected growing concern regarding greenwashing and established a more explicit framework for assessing environmental benefit claims made about products and businesses. More recently, on March 26, 2026, Bill C-15 made further amendments to s. 74.01(1)(b.2). Businesses making claims about the environmental benefits of a business or business activity no longer need to substantiate those claims in a way that conforms with internationally recognized methodology. However, these claims must still be based on adequate and proper substantiation. The amendment provides greater flexibility in how businesses substantiate those claims; it does not eliminate the substantiation requirement or change the separate testing requirement for product environmental benefit claims.
The latest Guidelines explain how the following provisions of the Act apply to environmental claims, with commentary and examples:
- Section 74.01(1)(a): Prohibits representations that are false or misleading in a material respect, including environmental claims that create a misleading overall impression.
- Section 74.01(1)(b): Prohibits product performance claims, including certain environmental performance claims, unless they are supported by adequate and proper testing.
- Section 74.01(1)(b.1): Prohibits claims regarding the environmental benefits of a product unless they are supported by adequate and proper substantiation.
- Section 74.01(1)(b.2): Prohibits claims regarding the environmental benefits of a business or business activity unless they are supported by adequate and proper substantiation.
The Guidelines set out six ‘principles for compliance’ to help businesses reduce compliance risk when making environmental claims. These are:
- Principle 1: Environmental claims must be truthful in both their literal meaning and the overall impression they convey and should not rely on disclaimers to correct an otherwise misleading message.
- Principle 2: Product environmental benefit claims and environmental performance claims must be supported by adequate and proper testing conducted before the claim is made.
- Principle 3: Comparative environmental claims should clearly identify what is being compared and the basis for the comparison.
- Principle 4: Environmental benefits should be described accurately and proportionately, without overstating or exaggerating their significance.
- Principle 5: Environmental claims should be clear, specific, and appropriately scoped, rather than broad, vague or unqualified.
- Principle 6: Claims regarding future environmental performance or sustainability commitments should be supported by adequate substantiation, a realistic plan, and meaningful steps toward achieving the stated objective.
The FAQ section included in the Guidelines addresses common concerns regarding environmental claims, including the types of claims that may form the basis of a private access application. Following the March 2026 amendments, private access applications can no longer challenge the substantiation of claims about the environmental benefits of a business or business activity. Such claims may nevertheless still be challenged as materially false or misleading. Product performance and product environmental benefit claims also remain available.
Reflective of the legislative changes flowing from Bill C-15, the FAQ also clarifies that claims about the environmental benefits of a business (or business activity) need not follow any particular domestic or international standard or involve testing necessarily but must be supported by adequate and proper substantiation suited to the Canadian context.
The focus of the Act remains on ensuring that consumers receive accurate information and that certain environmental representations are supported by evidence before they are made. Businesses should ensure that environmental marketing, sustainability disclosures, and climate-related commitments are carefully aligned with the evidence available and can be substantiated if challenged.
What this means for your business
Before publishing, businesses should:
- Confirm that each claim is truthful in both its literal meaning and the overall impression it gives, without relying on the disclaimers to fix it;
- Make sure claims are clear, specific, proportionate and not exaggerated;
- Back any future -facing commitment with a realistic plan and meaningful steps toward meeting it; and
- Keep the supporting evidence organized so you can respond quickly if a claim is challenged.
The team at WeirFoulds can assist in this type of review. Contact, Janet Bobechko, Mimi Palmer or Catalina Karam for assistance. We appreciate the assistance of articling student Jacqueline Brooks in preparation of this article.
The information and comments herein are for the general information of the reader and are not intended as advice or opinion to be relied upon in relation to any particular circumstances. For particular application of the law to specific situations, the reader should seek professional advice.
