Canada Issues Guidelines on Civil Greenwashing Claims

by | Aug 26, 2025 | Canadian Quality Assurance, Canadian Regulatory, Cosmetics, Importation of NHPs, Natural Health Products, OTC Drugs, Our View

One year after amendments to the Competition Act, Competition Bureau Canada has released its final guidelines on civil greenwashing claims, which took effect on June 20, 2025. These guidelines, which apply to foreign businesses operating in Canada, clarify the Bureau’s approach to environmental claims and provide principles for compliance.

A significant change is that private parties can now apply directly to the Competition Tribunal to file case against a business, which may increase litigation risks. The guidelines emphasize that all environmental claims must be truthful, substantiated, and backed by “adequate and proper” testing or evidence.

The guidelines also outline six key principles for business to follow when vetting their environmental claims:

  1. Truthful and not misleading: Claims should not be false or exaggerated.
  2. Properly substantiated: Environmental benefits should be backed by reliable testing and evidence.
  3. Specific comparative claims: When comparing products, be clear about what is being compared and the extent of the difference.
  4. Avoid exaggeration: Claims should not overstate environmental benefits, considering both the literal meaning and general impression.
  5. Clear and specific: Vague statements should be avoided.
  6. Substantiated future claims: Any claims about future environmental benefits must be supported by a clear plan and evidence.

While the guidelines are not legally binding, they are a crucial resource for companies as they review their environmental and sustainability messaging.

If you require any assistance, have any questions or would like to understand more about how this impacts your business, please do reach out to us.