Competition Bureau opens consultation on Competition Act provisions
New legislation aimed at cracking down on firms that make spurious claims about the green credentials are the subject of a new consultation by the Competition Bureau Canada.
The changes to the Competition Act tackle unsupported environmental claims in marketing, known as greenwashing, and include:
- Requiring that claims about the environmental benefits of a product be supported by adequate and proper testing.
- Requiring that claims about the environmental benefits of a business or business activity be based on adequate and proper substantiation in accordance with an internationally recognized methodology.
- The Bureau is assessing the impact of these requirements and expects to provide guidance, in due course, that will offer transparency and predictability for the business and the legal communities in the enforcement of the law.
Feedback is now being sought by the bureau to inform the guidance that will be provided.
“The Competition Bureau has received a large number of requests for guidance on the interpretation of new provisions of the Competition Act aimed at greenwashing. Through our consultation on these new provisions, we will provide guidance that will offer transparency and predictability for Canadians.” said Matthew Boswell, Commissioner of Competition.
Industry backlash
When the amendments were announced in June, The Canadian Association of Petroleum Producers (CAPP) said that it was “extremely disappointed with, and opposed to, the Competition Act’s amendments related to environmental representations with respect to the benefits of a business or business activity included in Bill C-59.”
CAPP said that: “The effect of this legislation is to silence the energy industry and those that support it in an effort to clear the field of debate and to promote the voices of those most opposed to Canada’s energy industry.” It believes that it “opens the floodgates for frivolous, resource-draining complaints.”
Pathways Alliance removed certain materials from its website following the amendment announcement.
Alberta Premier Danielle Smith also responded that the changes appear to be “part of an agenda to create chaos and uncertainty for energy investors for the purpose of phasing out the energy industry altogether.”
The Competition Bureau invites interested parties to provide feedback on the consultation questions by September 27, 2024, by emailing [email protected]. Each submission received will be published on the Bureau’s website unless the provider requests that it be kept confidential.
