{"id":6692,"date":"2024-07-11T13:52:40","date_gmt":"2024-07-11T17:52:40","guid":{"rendered":"https:\/\/www.millerthomson.com\/amendments-competition-act-bill-c-59-igreenwashing\/"},"modified":"2025-07-10T17:00:29","modified_gmt":"2025-07-10T21:00:29","slug":"amendments-competition-act-bill-c-59-igreenwashing","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/competition-antitrust-foreign-investment\/amendments-competition-act-bill-c-59-igreenwashing\/","title":{"rendered":"Amendments to the <i>Competition Act<\/i> \u2013 Bill C-59 and its impact on \u201cGreenwashing\u201d"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Overview<\/h2>\n\n\n\n<p>On June 20, 2024, the Federal Government passed Bill C-59, known as the <em>Fall Economic Statement Implementation Act,&nbsp;2023<\/em> (the \u201cBill C-59\u201d)<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>, amending certain provisions set out in the <em>Competition Act<\/em> (the \u201c<em>Act<\/em>\u201d)<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>. The amendments to the misleading advertising provisions arise out of consumer protection concerns involving \u201cgreenwashing,\u201d a practice that regulators around the world have a keen eye on. Greenwashing is the act of providing misleading or false information to the public or investors about the environmental benefits of a company\u2019s products or operations. The <em>Act <\/em>was amended to place more accountability on businesses who make environmental claims to the public<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a>. In particular, section 74.01(1) of the <em>Act<\/em> now requires that:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>claims about a product\u2019s environmental benefits be supported by adequate and proper testing (the \u201c<strong>Product Provision<\/strong>\u201d); and<\/li>\n\n\n\n<li>claims about the environmental benefits of a business or its activities be adequately substantiated by adequate and proper testing using an internationally recognized methodology (the \u201c<strong>Benefit Provision<\/strong>\u201d).<\/li>\n<\/ol>\n\n\n\n<p>The onus of proving compliance with these requirements lies with the person making the representation. In addition, as described below, the amendments have expanded private rights of action to the Competition Tribunal and have also introduced a process by which the Competition Bureau (the \u201cBureau\u201d) can exempt certain environment-related agreements from the criminal and civil collaborations provisions of the <em>Act<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">i. The Product Provision: Adequate and proper testing<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under the new provisions, businesses and individuals are prohibited from making claims about a product\u2019s environmental impact without fulfilling the \u201cadequate and proper\u201d test requirement.<\/li>\n\n\n\n<li>To ensure that a claim is based on sufficiently supported testing, the <a href=\"https:\/\/competition-bureau.canada.ca\/deceptive-marketing-practices\/types-deceptive-marketing-practices\/performance-claims-not-based-adequate-and-proper-test\" target=\"_blank\" rel=\"noopener\">Bureau has issued a set of guidelines<\/a>. Amongst these requirements, testing must be conducted before the claims are made, be carried out under controlled conditions, and substantiate the overall impression created by any marketing claims<a name=\"_ftnref4\" href=\"#_ftn4\">[4]<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">ii. The Benefit Provision: Accordance with internationally recognized methodology<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Benefit Provision requires those making claims that their business or business activities are in some manner protecting or restoring the environment, or mitigating the effects of climate change, to also be able to substantiate those claims with adequate and proper testing, but in this case, the testing must be in accordance with \u201cinternationally recognized methodology.\u201d<\/li>\n\n\n\n<li>Currently, there is no universally adopted standard for environmental testing that would give full effect to this amendment. Internationally, practices and approaches to marketing regulations and consumer protection vary. However, on July 4, 2024, the Bureau issued a press release confirming that it will be developing guidance regarding these new provisions on an accelerated basis, and will be launching a public consultation in the coming weeks to gather input from stakeholders.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Greenwashing in Practice<\/h2>\n\n\n\n<p>In 2022, after complaints by environmental activist group Stand.earth, the Bureau launched an investigation into alleged greenwashing practices by international clothing brand, Lululemon. Lululemon had introduced its \u201cBe Planet\u201d marketing campaign, which made broad claims about climate and environmentally friendly actions. Stand.earth\u2019s application claimed that these statements by Lululemon were false or misleading. Stand.earth referenced Lululemon\u2019s 2022 Impact Report, which showed a one-hundred percent increase in climate pollution since 2020, despite the campaign\u2019s focus on avoiding environmental harm and promoting practices aimed at restoring the environment. The Bureau is currently investigating Stand.earth\u2019s claim. Amendments to the <em>Act<\/em>, particularly those increasing routes for private litigation, will likely lead to a rise in similar claims both initiated by the Bureau and by private parties after June 2025<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Collaboration Agreements &#8211; Environmental Certificates<\/h2>\n\n\n\n<p>Amendments to the <em>Act<\/em> also introduce section 124.3(1), which allows businesses to enter into collaborative agreements with unaffiliated companies for the purposes of protecting the environment, so long as the agreement is: (i) not likely to prevent competition, or (ii) unlikely to lessen competition substantially in a market.&nbsp; The Commissioner of Competition (\u201cCommissioner\u201d) can now grant a certificate indicating their satisfaction with the agreement<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a>.<\/p>\n\n\n\n<p>The introduction of this certificate can offer some relief for businesses entering into agreements for environmental protection, alleviating concerns about collusive sanctions and penalties. However, while the Commissioner can grant a certificate, the Bureau also retains the authority to revoke the certificate if the business fails to satisfy the above-mentioned criteria. Furthermore, although this certificate creates an exemption from the criminal and civil collaboration provisions of the <em>Act<\/em>, it does not apply to deceptive marketing provisions<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Increased penalties and expanded access for private actions to the Competition Tribunal<\/h2>\n\n\n\n<p>Administrative Monetary Penalties (\u201cAMPs\u201d) for violating the <em>Act <\/em>by engaging in false or misleading advertising are significant, and have been increased as part of the amendments:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For corporations, the penalty is the greater of: $10 million CAD ($15 million for each subsequent order) and three times the value of the benefit derived from the deceptive conduct, or, if that amount cannot be reasonably determined, 3% of the corporation\u2019s annual worldwide gross revenue.<\/li>\n\n\n\n<li>For Individuals, the penalty is the greater of $750,000 CAD ($1 million for each subsequent order) and three times the value of the benefit derived from the deceptive conduct, if that amount can be reasonably determined<a name=\"_ftnref8\" href=\"#_ftn8\">[8]<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>A significant change to the <em>Act <\/em>comes into force in June 2025, allowing private parties to initiate proceedings in front of the Tribunal. Previously, only businesses whose entire operations were impacted by a company\u2019s alleged uncompetitive conduct were permitted to bring applications in front of the Tribunal. Consequently, only the Bureau had the authority to commence proceedings for limited provisions, such as refusal to deal, price maintenance, and abuse of dominance, amongst others.<\/p>\n\n\n\n<p>Effective June 2025, private parties will be able to request leave from the Tribunal for all reviewable conduct (including \u201cgreenwashing\u201d), if it is determined that it is in the \u201cpublic interest\u201d to do so. &nbsp;These private litigants will be able to seek remedies from the Tribunal including temporary orders, full prohibition orders, interim injunctions and restitution orders, as well as the AMPs described above.&nbsp; It is expected that private litigation will increase exponentially once this provision comes into effect<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key takeaways<\/h2>\n\n\n\n<p>In summary, businesses should prepare to be impacted by the new \u201cgreenwashing\u201d prohibitions in the following ways:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Any claims regarding product or practice benefits and impact on the environment must be supported by adequate and proper testing;<\/li>\n\n\n\n<li>Claims about a business or business activities (including the services it provides) and their environmental benefits must adhere to internationally recognized methodology, a term awaiting clarification from the Bureau; and<\/li>\n\n\n\n<li>There is increased potential for private litigation beginning in 2025 alongside notable penalties.<\/li>\n<\/ol>\n\n\n\n<p>Your marketing department will need to assess if they have conducted \u201cadequate and proper\u201d testing in advance of making potential environmental benefit claims. The amendments expressly mention internationally recognized methodologies as the required standard for adequate testing. Therefore, businesses should consider using internationally recognized third-party compliance experts for the testing of their environmental claims.<\/p>\n\n\n\n<p>Should you have any questions regarding greenwashing or deceptive marketing practices, please reach out to any member of Miller Thomson\u2019s <a href=\"https:\/\/www.millerthomson.com\/en\/expertise\/business\/marketing-advertising-product-compliance\/\" target=\"_blank\" rel=\"noopener\">Marketing, Advertising and Product Compliance<\/a> team or <a href=\"https:\/\/www.millerthomson.com\/en\/expertise\/business\/competition-antitrust-foreign-investment\/\" target=\"_blank\" rel=\"noopener\">Competition \/ Antitrust<\/a> team.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> [1] Bill C-59, <em>An Act to implement certain provisions of the fall economic statement tabled in Parliament on November&nbsp;21, 2023&nbsp;and certain provisions of the budget tabled in Parliament on March&nbsp;28, 2023<\/em>, 1st Sess, 44th Parl, 2024, cl 236(1) (Assented to 20 June 2024).<\/p>\n\n\n\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> <em>Competition Act<\/em>, RSC 1985, c. C-34.<\/p>\n\n\n\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> Notably, \u201cgreenwashing\u201d was not previously permitted under the <em>Act<\/em>, but rather was recognized as a false and misleading practice that would be in violation of the general prohibition against making false and misleading representations under Sections 74.01 and 52 of the <em>Act<\/em>. These amendments now codify and add specificity to the prohibition against greenwashing. In particular, if your business advertises beneficial environmental claims for its products, services or business activities, these claims can possibly contravene the <em>Act <\/em>even if they do not materially influence a purchasing decision or concern the performance of a product or service.<\/p>\n\n\n\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> Competition Bureau. \u201cPerformance claims not based on an adequate and proper test.\u201d <em>Government of Canada<\/em>, 24 June 2022, <a href=\"https:\/\/competition-bureau.canada.ca\/deceptive-marketing-practices\/types-deceptive-marketing-practices\/performance-claims-not-based-adequate-and-proper-test\">https:\/\/competition-bureau.canada.ca\/deceptive-marketing-practices\/types-deceptive-marketing-practices\/performance-claims-not-based-adequate-and-proper-test<\/a>.<\/p>\n\n\n\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> McGowan, Jon. \u201cCanada\u2019s New Greenwashing Law Will Impact U.S. Companies\u2019 Climate Marketing.\u201d <em>Forbes<\/em>, 21 June 2024, <a href=\"http:\/\/www.forbes.com\/sites\/jonmcgowan\/2024\/06\/21\/canadas-new-greenwashing-law-will-impact-us-companies-climate-marketing\">www.forbes.com\/sites\/jonmcgowan\/2024\/06\/21\/canadas-new-greenwashing-law-will-impact-us-companies-climate-marketing<\/a>.<\/p>\n\n\n\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> <em>Supra<\/em> note 1, at cl 265.<\/p>\n\n\n\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> Competition Bureau. \u201cGuide to the June 2024 amendments to the <em>Competition Act<\/em>.\u201d <em>Government of Canada<\/em>, 25 June 2024, <a href=\"https:\/\/competition-bureau.canada.ca\/how-we-foster-competition\/education-and-outreach\/guide-june-2024-amendments-competition-act\">https:\/\/competition-bureau.canada.ca\/how-we-foster-competition\/education-and-outreach\/guide-june-2024-amendments-competition-act<\/a>.<\/p>\n\n\n\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> <em>Supra<\/em> note 2, s74.1(1)(c).<\/p>\n\n\n\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> <em>Supra <\/em>note 5.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview On June 20, 2024, the Federal Government passed Bill C-59, known as the Fall Economic Statement Implementation Act,&nbsp;2023 (the \u201cBill C-59\u201d)[1], amending certain provisions set out in the Competition Act (the \u201cAct\u201d)[2]. The amendments to the misleading advertising provisions arise out of consumer protection concerns involving \u201cgreenwashing,\u201d a practice that regulators around the world [&hellip;]<\/p>\n","protected":false},"author":86,"featured_media":14337,"parent":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[574],"insight-format":[416],"class_list":["post-6692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-competition-antitrust-foreign-investment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Amendments to the Competition Act \u2013 Bill C-59 and its impact on \u201cGreenwashing\u201d | Miller Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/competition-antitrust-foreign-investment\/amendments-competition-act-bill-c-59-igreenwashing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amendments to the Competition Act \u2013 Bill C-59 and its impact on \u201cGreenwashing\u201d | Miller Thomson\" \/>\n<meta property=\"og:description\" content=\"Overview On June 20, 2024, the Federal Government passed Bill C-59, known as the Fall Economic Statement Implementation Act,&nbsp;2023 (the \u201cBill C-59\u201d)[1], amending certain provisions set out in the Competition Act (the \u201cAct\u201d)[2]. The amendments to the misleading advertising provisions arise out of consumer protection concerns involving \u201cgreenwashing,\u201d a practice that regulators around the world [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.millerthomson.com\/en\/insights\/competition-antitrust-foreign-investment\/amendments-competition-act-bill-c-59-igreenwashing\/\" \/>\n<meta property=\"og:site_name\" content=\"Miller Thomson\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MillerThomsonLaw\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-11T17:52:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-10T21:00:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2024\/10\/Insights_Competition_Antitrust-Foreign-Investment_Post-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1776\" \/>\n\t<meta property=\"og:image:height\" content=\"994\" 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\u2013 Bill C-59 and its impact on \u201cGreenwashing\u201d | Miller Thomson","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.millerthomson.com\/en\/insights\/competition-antitrust-foreign-investment\/amendments-competition-act-bill-c-59-igreenwashing\/","og_locale":"en_US","og_type":"article","og_title":"Amendments to the Competition Act \u2013 Bill C-59 and its impact on \u201cGreenwashing\u201d | Miller Thomson","og_description":"Overview On June 20, 2024, the Federal Government passed Bill C-59, known as the Fall Economic Statement Implementation Act,&nbsp;2023 (the \u201cBill C-59\u201d)[1], amending certain provisions set out in the Competition Act (the \u201cAct\u201d)[2]. The amendments to the misleading advertising provisions arise out of consumer protection concerns involving \u201cgreenwashing,\u201d a practice that regulators around the world [&hellip;]","og_url":"https:\/\/www.millerthomson.com\/en\/insights\/competition-antitrust-foreign-investment\/amendments-competition-act-bill-c-59-igreenwashing\/","og_site_name":"Miller Thomson","article_publisher":"https:\/\/www.facebook.com\/MillerThomsonLaw\/","article_published_time":"2024-07-11T17:52:40+00:00","article_modified_time":"2025-07-10T21:00:29+00:00","og_image":[{"width":1776,"height":994,"url":"https:\/\/www.millerthomson.com\/wp-content\/uploads\/2024\/10\/Insights_Competition_Antitrust-Foreign-Investment_Post-Image.jpg","type":"image\/jpeg"}],"author":"Nyeisha Murray","twitter_card":"summary_large_image","twitter_creator":"@millerthomson","twitter_site":"@millerthomson","twitter_misc":{"Written by":"Nyeisha Murray","Est. reading time":"7 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