On March 26, 2026, the Budget 2025 Implementation Act, No. 1 received Royal Assent, introducing changes to the Competition Act related to environmental claims. These changes removed the requirement for environmental claims to be supported by an internationally recognized methodology. We will update our guidance on Environmental claims and the Competition Act to reflect this change.
Our guidelines for businesses on environmental claims
Our perspective on greenwashing
Consumers are increasingly taking the environment into account when they make buying decisions. And businesses are responding by portraying themselves and their products or services in the ‘greenest’ light possible.
While the supply of “green” products has greatly increased, there has also been an increase of false or misleading environmental ads or claims, also known as greenwashing. This practice harms competition because it misleads consumers into believing they are making environmentally friendly choices when they aren't.
Consumers may end up spending more on products that don't deliver the promised benefits, which can be a waste of money and undermine their confidence.
Businesses who actually offer a product that has a lower environmental impact may see their potential consumers being misled into purchasing products and services from competitors that made false or misleading claims.
Environmental claims: our role
At the Bureau, we enforce laws that help ensure that claims in the marketplace are truthful and not deceptive.
Our role is to investigate misleading advertising and deceptive marketing practices, including any representation related to the environment that has been made for the purpose of promoting a product or business interest.
How the laws apply
The Bureau investigates environmental claims that raise issues under the Competition Act, the Consumer Packaging and Labeling Act, and the Textile Labeling Act.
The Competition Act prohibits businesses from making false or misleading claims to promote a service, product or business interest. When assessing a claim, the Bureau must consider the "general impression" conveyed by the claim, as well as its literal meaning.
The Competition Act also prohibits performance claims that are not based on adequate and proper testing. This includes any form of statement, warranty or guarantee of a product’s performance, efficacy or length of life.
The Competition Act contains provisions that explicitly target greenwashing as well. These provisions prohibit claims about the environmental benefits of a product that are not based on adequate and proper testing. And prohibit claims about the environmental benefits of a business or business activity that are not based on adequate and proper substantiation.
The Consumer Packaging and Labelling Act and the Textile Labelling Act require that prepackaged non-food consumer products and textile articles respectively bear accurate and meaningful labelling information to help consumers make informed purchasing decisions.
They prohibit the making of false or misleading claims and set out specifications for mandatory label information. All information on a package, product, and textile, whether in symbols or words, must be neither false nor misleading to consumers.
Environmental claims that raise issues under these laws are examined on a case-by-case basis and assessed on their own merits.
Further reading
- The Deceptive Marketing Practices Digest — Environmental Claims and the Competition Act
- Performance representations not based on adequate and proper tests
- Consumers: Be on the lookout for greenwashing
- Keurig Canada to pay $3 million penalty to settle Competition Bureau’s concerns over coffee pod recycling claims
- Up to $290.5 million in compensation for Canadians in Volkswagen, Audi and Porsche emissions case
- Complaint form