Canadian Greenwashing Guidelines
In June 2025, the Competition Bureau Canada released its final guidelines on environmental claims, following two rounds of public consultations held over the past year. These guidelines address new greenwashing provisions introduced to the Competition Act and establish clear expectations for businesses marketing environmental benefits. The guidelines focus specifically on marketing and promotional claims, not all environmental representations a business might make. Claims must not be false or misleading and require strong substantiation—often through proper testing or internationally recognized methodologies. This regulatory framework aims to strengthen transparency, counter deceptive marketing, and ensure compliance for businesses making environmental claims in Canada.
Key Obligations for Environmental Claims
Canadian businesses must substantiate environmental claims with rigorous evidence. The guidelines emphasize scientific substantiation and, often, third-party verification, ensuring claims are credible and verifiable. Here are the key obligations businesses must follow:
- Relevant substantiation: Evidence used to support claims must be suitable, specific, and tied directly to the environmental claim.
- Adherence to global methodologies: Businesses are encouraged to rely on internationally recognized standards for claim validation.
- Verification standards: While not always mandatory, third-party assessments are often required by internationally recognized methodologies. Third-party assessments are critical in building trust and meeting legal expectations.
Failure to adhere to these principles can result in significant legal and financial repercussions.
Six Principles for Environmental Claims
To ensure claims are truthful and transparent, the guidelines highlight six essential principles:
- Accuracy: Claims must be truthful, avoiding any false or misleading representations.
- Scientific rigor: Claims about product performance and environmental benefits require thorough and validated testing.
- Specific comparisons: Comparative claims should clearly define which factors or products are being contrasted.
- No exaggeration: Claims must avoid overstatement and misleading implications of benefits.
- Clarity: Vague or overly broad claims should be avoided; specific details should be provided.
- Future claims substantiation: Promises about future environmental performance should include evidence and a clear implementation plan.
Specific Areas of Concern
The Competition Bureau closely examines various categories of environmental claims, addressing potential issues such as:
- Misleading representations: False claims or omissions that deceive consumers.
- Product performance claims: Statements about a product's environmental impact or benefits.
- Business practices: Claims that extend beyond a single product to the entire organization's environmental commitment.
Penalties for non-compliance
Canadian authorities enforce significant penalties for violations of greenwashing guidelines. Businesses found guilty of deceptive practices can face fines of:
- Up to $10 million for first-time offenses.
- Up to $15 million for subsequent offenses.
- The greater of three times the value of the benefit derived from the misconduct or 3% of annual revenues.
How businesses can ensure compliance
Aligning with regulations requires proactive measures to substantiate environmental claims. Here’s how businesses can adapt:
- Gather supporting evidence: Use scientific studies, test results, or certifications to back any claims.
- Utilize third-party verification: Seek evaluations from reputable organizations to enhance credibility.
- Implement tracking systems: Tools like ProductDNA can help businesses manage compliance by linking certifications to production batches and supply chains and Generating automated, claim-supporting reports.
- Review existing claims: Regularly audit marketing content to ensure accuracy and relevance.
- Educate teams: Equip marketing, legal, and compliance departments with the knowledge to adhere to guidelines.
The Global Push Against Greenwashing
Greenwashing restrictions are a growing global trend. Regions like Europe, the United States, and the UK have updated or introduced stringent guidelines, similar to Canada’s framework. This global momentum underscores the importance of promoting sustainability and combating deceptive practices.
Take action with Trimco Group’s ProductDNA
The Canadian greenwashing guidelines offer an opportunity for businesses to showcase genuine sustainability while building consumer trust. By taking the necessary steps to comply, you not only reduce legal risks but also strengthen your brand’s reputation as an environmentally responsible leader.
If you’re looking to streamline your compliance efforts, consider leveraging innovative tools like Trimco Group’s ProductDNA. With features designed to validate environmental claims, link relevant documentation, and create real-time reports, your business can confidently meet regulatory standards.
Prepare your business for the future of sustainable marketing. Start today by reviewing your claims to ensure transparency and align with Canada’s greenwashing standards. Get in touch with our team to start the conversation.
Disclaimer: This article is based on our interpretation and research of the guidelines and should be treated as such.
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