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Deceptive Marketing Practices

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Canada’s Competition Bureau (the Bureau) today released a new edition of the Deceptive Marketing Practices Digest (the Digest) that addresses environmental claims. The new edition aims to provide the Bureau’s general perspective on environmental claims and offers a foundation to understand the issues around environmental claims in general and how businesses can comply with the provisions of the Competition Act already in place prior to the new greenwashing provisions of the Competition Act, which were implemented on June 20, 2024 (see our earlier bulletin here). The Bureau also launched a public consultation to gather input from Canadians on specific questions related to the new amendments in advance of new guidance. Feedback is due by September 27, 2024. This bulletin briefly summarizes the key points arising out of the Digest: Environmental claims. The Bureau’s perspective is that an environmental claim is any representation related to the environment that has been made for the purposes of promoting a product or business interest. Environmental claims can be about physical products as well as services, processes, and business practices. Greenwashing. Greenwashing means, in the context of the Bureau’s work, environmental claims that are deceptive because they are false, misleading, or not adequately and properly tested or substantiated. The Bureau has historically received complaints about greenwashing in a number of categories: Composition claims (i.e., what is in a product or its packaging); Claims about the production process of products; Claims about the disposal of products after use; Comparison claims; Vague claims; and Claims about the future (e.g., carbon neutrality by a certain date; investments in environmental projects, etc.). Tips for businesses. The Bureau outlines the following tips for businesses considering making environmental claims: Be truthful, and not false or misleading. Ensure claims are properly and adequately tested. Comparative claims; be specific about what is being compared. Avoid exaggeration.  Avoid vague environmental claims in favour of clear and specific ones.…