CHAPTER 12 Environmental Law and Indigenous Rights
The Competition Bureau is taking enforcement action to combat “greenwashing” (the practice of
Carbon pricing is not the only regulatory mechanism aimed at mitigating the effects of climate change. For example, both Québec and Ontario have (i) introduced “clean fuel” standards, which mandate the renewable content of fuel used or sold in the provinces, with the requisite level of renewable content increasing over time; and (ii) implemented mandatory energy consumption reporting for certain large buildings, in an effort to increase energy efficiency and decrease GHG emissions. GREENWASHING In a 2022 summit focused on the intersection between competition law and sustainability, the Commissioner of Competition confirmed that Canada’s Competition Bureau believes that its mandate includes maintaining consumer confidence in the “green economy.” The Commissioner specifically highlighted the rise in “greenwashing” (the practice of making false or misleading eco- claims). Enforcement action to combat greenwashing is grounded in the general prohibitions in the Competition Act against making representations to promote any business interest, or the supply or use of a product, if such representations are materially false or misleading in a material respect. Orders may be issued to stop certain representations, and administrative monetary penalties may be imposed (of up to the greater of $10 million and three times the value of the benefit derived). The Bureau is currently conducting three greenwashing investigations and a fourth investigation (relating to the recyclability of single-use coffee pods) resulted in a settlement involving the payment of a $3-million penalty. In addition to the foregoing enforcement risks, private parties may rely on the Competition Act to initiate class actions and/or seek injunctions related to allegedly false or misleading representations, which may result in significant monetary costs and reputational damage to the offenders (see the Competition Law chapter of this guide).
making false or misleading ecoclaims).
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