Canada has taken a bold step towards environmental accountability by amending its Competition Act to regulate greenwashing. This move is part of a global trend, with an increase in litigation against greenwashing observed worldwide.
The amendment requires businesses to provide substantiation for their environmental claims. This means that companies can no longer make vague or misleading claims about the environmental benefits of their products or services without concrete evidence.
The Canadian Competition Bureau is currently seeking feedback on draft guidelines for these new regulations. The public consultation stage is open until February 28, 2025.
Implications for U.S. Businesses
This new provision has significant implications for U.S. businesses operating in Canada. They will now need to ensure their environmental claims are not only accurate but also substantiated.
Non-compliance could lead to high penalties, adding another layer of risk for businesses. It’s crucial for U.S. companies to understand these changes and adjust their marketing strategies accordingly.
This development underscores the increasing importance of transparency and accountability in business practices, particularly in relation to environmental claims. It’s a clear signal that greenwashing will not be tolerated.
