Question Period Note: GREENWASHING PROVISIONS IN THE COMPETITION ACT AND THEIR IMPACT ON THE AGRICULTURE SECTOR (CONCERNS ABOUT FORMER BILL C-59)

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Former Bill C-59 introduced new greenwashing provisions under the Competition Act, which took effect on June 20, 2024. These amendments required businesses to substantiate environmental claims through proper testing and internationally recognized methodologies, placing the burden of proof on the claimant. Beginning June 20, 2025, private parties were allowed to bring actions before the Competition Tribunal, increasing legal risk. While consultations and draft guidelines were completed, stakeholders in the agriculture sector expressed concerns about unclear standards, potential chilling effects on sustainability claims, and the risk of frivolous litigation. Recommendations included providing clear and flexible guidance, recognizing existing standards, balancing enforcement, and considering sector-specific challenges to support transparency and innovation.

Current Status:

As part of Budget 2025, the Government proposed amendments to the Competition Act’s greenwashing provisions to provide greater certainty for businesses while maintaining strong consumer protections. Key changes include removing the requirement to use internationally recognized methodologies for substantiating environmental claims, allowing flexibility for Canadian science-based approaches, and eliminating third-party access to bring greenwashing complaints directly to the Competition Tribunal to reduce frivolous claims.

These measures being implemented through Bill C-15, which was introduced on November 18, 2025, aim to balance consumer protection with regulatory efficiency and reduce barriers for legitimate environmental claims. Bill C-15 passed second reading on December 10, 2025, and is now before the Standing Committee on Finance for detailed review, while the Senate has authorized pre-study by its National Finance Committee and other committees. Updated guidance from the Competition Bureau is expected following Royal Assent. The amendments reflect Agriculture and Agri-Food Canada’s concerns by improving transparency, reducing ambiguity, and maintaining flexibility.

• Canadian companies are leading the way on environmental action, and it’s important that they are able to proudly showcase their efforts and long-term aspirations publicly.
• Measures to address greenwashing strengthen credibility so that consumers can trust the environmental claims of Canadian companies.
• The recently announced amendments to the greenwashing provisions of the Competition Act under Bill C-15 will continue to protect consumers from greenwashing, while providing agriculture and agri-food businesses with the flexibility and clarity needed to substantiate their environmental claims and set longer-term objectives.