Built Green Canada is drawing attention to significant amendments to Canada’s Competition Act, which will impose stricter regulations on environmental claims made by businesses.
The Competition Bureau is currently developing enforcement guidelines to ensure that green marketing statements meet higher standards of accuracy and transparency.
These changes expand the legal avenues available for challenging misleading environmental claims. The updated legislation strengthens accountability in sustainability marketing, ensuring that companies substantiate their claims with adequate and proper testing.
For the construction industry, this represents a shift in how green building materials and eco-friendly initiatives can be promoted.
Stronger Oversight on Environmental Marketing Claims
Under the Competition Act, businesses have long been prohibited from making false or misleading statements regarding their products or services. However, enforcement was primarily in the hands of the Competition Bureau.
The recent amendments introduce expanded private access rights, allowing third parties, including competitors and consumer groups, to challenge deceptive environmental claims directly at the Competition Tribunal.
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Previously, private access was limited to cases involving price maintenance, tied selling, exclusive dealing, refusal to supply and market restriction.
Now, this scope has been broadened to include deceptive marketing practices and anti-competitive agreements, a move aimed at curbing greenwashing, a practice where businesses exaggerate or misrepresent their environmental credentials.
The updated provisions relevant to environmental claims fall into two key categories including truth in advertising and product performance claims. All claims about efficacy, lifespan or sustainability must be scientifically validated, and any claims made in advertising must be accurate and verifiable.
What This Means for the Construction Industry
For Canadian construction companies, these changes will bring increased scrutiny to green building practices, sustainable materials and environmental certifications. Companies promoting products as energy-efficient, low-carbon or environmentally friendly will need solid evidence to support those claims.
Many companies rely on certifications to differentiate themselves in the market, but under these new rules, superficial or exaggerated sustainability claims could lead to legal challenges. This means that green product manufacturers must ensure that eco-friendly attributes are scientifically tested and verifiable.
Also, developers and builders marketing sustainable projects must substantiate claims regarding carbon footprint reduction, net-zero building performance or eco-conscious designs.
Furthermore, construction material suppliers promoting low-impact materials must have clear data to support claims of durability, environmental benefits and performance.
The Push Against Greenwashing
Greenwashing has become an increasing issue across multiple industries, as companies sometimes use unclear or exaggerated statements to appeal to environmentally conscious consumers.
The updated Competition Act provisions are designed to promote fair competition by ensuring that businesses making sustainability claims can substantiate them with credible evidence.
Companies that implement genuine sustainable practices and provide verifiable proof of their environmental impact are likely to gain a competitive edge.
Businesses that rely on misleading or unproven green claims not only face potential legal consequences but also risk damaging consumer trust, which can have long-term financial repercussions.
The Competition Act: What’s Next?
With these changes taking effect in June, businesses will need to review their marketing practices, ensure compliance with the new regulations and be prepared to substantiate environmental claims with proper documentation.
For construction professionals, this presents an opportunity to reinforce genuine sustainability efforts by adhering to credible standards and promoting verifiable environmental benefits.
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