Driven by global competitiveness and the desire to increase investment in Canada, there have been several changes in federal and provincial environmental-related regulations. It now appears that the Canadian Competition Act, Greenwashing Rule, may be changing.
Ontario Environmental Changes
As we have discussed throughout the year, there have been several changes in Ontario’s approach to environmental regulations, as well as an emphasis on natural resources development, including:
- Amendments to Ontario’s Excess Soil Regulations and Records of Site Condition.
- Investing in the Ring of Fire
- Amendments to Ontario Blue Box Regulations.
Federal Environmental Changes
On the federal level, the Canadian Security Administrators have changed their stance on climate-related disclosures, and Prime Minister Mark Carney has hinted at changes to Bill C-69, the Impact Assessment Act. Now, it appears that federal Greenwashing provisions may also be headed for change.
The Canadian Competition Act
As we reported in our July 15, 2024, blog, as well as in our July 22, 2025, blog, Bill C-59 made substantial changes to the Canadian Competition Act, including statements regarding greenwashing.
The changes tackle unsupported environmental claims, commonly known as greenwashing, by:
- Requiring that claims about the environmental benefits of a product be supported by adequate and proper testing.
- Requiring that claims about the environmental benefits of a business or business activity be based on adequate and proper substantiation in accordance with an internationally recognized methodology.
If statements are ruled as “greenwashing,” the amendments also includes harsh penalties, including an administrative monetary penalty that is the greater of $10 million ($15 million for repeat conduct), or three times the value of the benefit derived from the deceptive conduct, or, if that amount cannot be reasonably determined, 3% of worldwide gross revenues.
The Canadian Competition Act, Greenwashing Rule, may be changing.
Additionally, there is a low bar for bringing an inquiry against a company’s environmental claim. Any six residents of Canada over the age of 18 may file for an inquiry with the Competition Bureau. We know of at least one instance where six applicants from Stand.earth made a claim (against Luluemon).
The changes to the Competition Act led to some companies to immediately scrub all content about environmental commitments from their webpages. It also seemed to cool overall commitments to green efforts, as the risks may have outweighed the benefits.
Potential Amendments to the Competition Act
In November 2025, the Government of Canada released its “Canada Strong Budget 2025.” Included in the budget is a mention of the Competition Act. From the law firm Tory’s, “The Budget concedes that these changes (Greenwashing Provisions in the Competition Act) have created uncertainty for investors and have created a chilling effect on some corporate disclosures.”
The 2025 Budget may look to amend the Competition Act. The Government proposes to remove and to amend the Competition Act to update the greenwashing provisions by removing the requirement for businesses to substantiate their environmental benefit claims based on internationally recognized methodology standards and the ability for third parties to bring cases directly to the Competition Tribunal for greenwashing complaints.
Currently, this is proposed, so the existing regulation (June 5, 2025) remains in place. In a recent blog, McMillan wrote, “At this time, we do not have insight into the scope of the proposed amendments or when these amendments will become effective. The ‘green’ provisions remain the law for the moment, along with the right of private enforcement.”
For more information or for assistance with an environmental issue, contact Christopher Paré, P.Geo., at 519-948-7300, Ext. 114.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio.
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