March 23, 2025
Bill C-59 - Protecting Canadians from misleading environmental claims?
Nick Warelis, B Local Ontario Board member, attended an event on Bill C-59 and would like to share some useful information that could help your business and clarify what changes are included in the bill.
About the Competition Act
The Competition Act aims to maintain and enhance competition in Canada. The Competition Bureau enforces this act, focusing on consumer protection by preventing false and misleading representations. The Bureau ensures a level playing field by penalizing companies that make false claims to gain market share.
Greenwashing Amendments in Bill C59
Bill C59 introduces significant amendments to the Competition Act, particularly concerning greenwashing. Organizations must now prove that their environmental claims are true and not misleading.
The amendments are categorized into two main provisions:
- Focuses on claims about a product or service's environmental benefits.
- Pertains to claims about the environmental benefits of a business or its activities.
Who is affected?
Bill C59 applies to all for-profit, not-for-profit, and charitable organizations across Canada. As of June 20, 2025, private parties, such as individuals, environmental groups and competitors, can file a complaint with the Competition Tribunal against a business suspected of committing greenwashing without having to prove that they have been directly harmed.
Practical Steps for your Business
Companies are advised to document their due diligence and have a vetting process for environmental claims. This includes maintaining a file with substantiation for each claim, whether it pertains to a product, service, or business activity. Companies should also consider future-oriented claims and ensure they have a clear, logical and convincing plan to achieve their stated ambitions.
Something to keep in mind for those disclosing information publicly – take the perspective of, if someone like me were to look at this, would I be skeptical of the data, commitment or plan?
Considerations
Companies are advised to be mindful of their competitive landscape and the scrutiny they may face from various stakeholders.
Questions you may have
The primary way the Competition Bureau learns of issues is through complaints, including those from competitors and public interest groups. The Bureau also conducts its own monitoring and interacts with international agencies to stay informed about trends.
The focus of C59 is primarily on environmental claims. While the language includes "social and ecological causes or effects of climate change," the primary emphasis is on environmental aspects.
Stopping ESG disclosure poses more of a business risk than a legal risk. Stakeholders, investors, and the public have high expectations for a company's ESG record, and failing to disclose could impact business decisions and reputation.
The data used must be robust enough to satisfy legal tests and should have a causal connection to the claims being made. The Bureau does not provide specific guidelines on the type of data, so companies must exercise judgment based on their industry standards.
Yes, companies should have detailed and robust transition plans to support their future-oriented claims. These plans should be reasonable and based on sound assumptions to withstand scrutiny.
