Canada has launched strict guidelines to prevent greenwashing, requiring businesses’ environmental statements to be verifiable and true. The rules, included in recent changes to the Deceptive Marketing Practices provisions of the Competition Act, target imprecise or deceptive sustainability claims. Learn more.
Key Guidelines
Future-Oriented Claims
Statements such as “net zero by 2050” or “carbon neutral by 2030” need:
A specific, actionable plan with milestones.
Concrete actions already underway, not merely hopes.
Substantiation Standards
Assertions must be supported by globally accepted methodologies.
Third-party authentication might be necessary.
Product performance assertions require actual testing, not hearsay or relative comparisons with like products.
Comparative and Specific Claims
Greenness comparisons need to clearly outline the baseline and details.
Refrain from hype and be specific to avoid misinterpretation.
Penalties for Non-Compliance
CAD 10 million fine for a first offense, CAD 15 million for subsequent offenses.
Penalties can also be a proportion of company turnover or benefits derived from misleading advertising.
Why This Matters
Trust: Consumers, investors, and regulators are checking claims. Greenwashing can harm reputations in the long term.
Legal Risk: These guidelines are enforceable under law, and there are serious financial penalties.
Competitive Advantage: Genuine, verifiable gains can establish credibility and differentiate companies.
Action Steps for Businesses
Review current environmental claims for evidence, transparency, and adherence to acknowledged standards.
Create actionable future-claims roadmaps, with quantifiable goals and clear challenges.
Use third-party verifiers to certify claims as necessary.
Educate marketing and communications personnel on compliant behavior.
Keep up to date on enforcement trends and case studies for additional clarity.
The Bottom Line
Canada’s anti-greenwashing regulations require transparency. Businesses must substantiate environmental claims with credible, measurable proof. It is time to establish trust and credibility by focusing on clarity and genuine progress rather than hype. It is time to make your environmental promises work.
