On June 5, 2025, the Competition Bureau of Canada announced the release of its final guidelines concerning environmental claims. This follows two rounds of public consultations held over the past year, aimed at ensuring businesses comply with the Competition Act.

The guidelines are particularly significant as they incorporate new provisions targeting greenwashing, which were added to the Competition Act through amendments that took effect on June 20, 2024. These provisions require that any claims regarding the environmental benefits of a product or business must be substantiated through adequate testing or recognized methodologies.

While the guidelines do not dictate how businesses should make environmental claims, they emphasize that such claims must not be false or misleading. Companies are encouraged to thoroughly review these guidelines to avoid potential violations.

The Bureau has previously taken enforcement actions against companies like Keurig and Volkswagen for deceptive marketing practices related to environmental claims. Under the civil deceptive marketing provisions, penalties for violations can be substantial, reaching up to $10 million for first-time offenders and significantly more for repeat violations.

In 2022, the Bureau issued a consumer alert to raise awareness about greenwashing and encourages the public to report any suspected deceptive marketing claims through their online platform.