New greenwashing rules come into play

In June, the long-awaited greenwashing amendments to Canada’s Competition Act came into force with mixed fanfare. Unsurprisingly, big industry, such as oil and gas, quickly criticized the new rules. Most legal experts praised the new rules. Meanwhile environmental groups largely welcomed the new rules but remain concerned about the ambiguity built into the Competition Bureau’s accompanying greenwashing guidelines.  

So, what are the good attributes of the new rules? 

• The amendment has expanded private access to the Competition Tribunal. This means private parties can now apply directly to the Tribunal with cases that challenge deceptive marketing practices under the Competition Act.  

• Violations are considerable -- $10 million for first-time violations ($15 million for each subsequent violation) and three times the benefit value from the misconduct or 3% of the corporation’s annual gross revenue.  

The concern with the guidelines: 

• The Bureau’s guidelines for environmental claims give an extraordinary amount of leeway regarding what may qualify as “adequate and proper test” and “internationally recognized methodology”.   

Such leeway opens the door for questionable certifications to evade scrutiny by the Bureau and could result in greenwashing associated with certification claims to continue unmitigated in the Canadian marketplace – a problem that Living Oceans has long highlighted as problem in farmed salmon certifications. And it’s not just seafood certifications. The potential for misleading certifications is an issue systemic across commodities and certifications – including forestry, palm oil, cotton, soy, cocoa, coffee, and more.  

Living Oceans and fellow conservation groups are keenly watching whether the new greenwashing rules will have teeth – once put to the test. 

Read our full SeaChoice submission to the Competition Bureau.