Canada Competition Act: 2026 Greenwashing Amendments Explained

• Canada's Competition Act was amended in 2024 to require environmental claims substantiation via "internationally recognized methodology" and allow private enforcement actions.
• In 2025, the federal government announced plans to weaken these provisions, citing investment uncertainty and reduced environmental efforts.
• On March 26, 2026, Bill C-15 enacted the 2026 amendments, removing the "internationally recognized methodology" requirement and limiting the private right of action.
• These 2026 amendments are seen as weakening Canada's anti-greenwashing laws and impacting corporate accountability for environmental claims.
• Further policy reform is suggested to enhance the Competition Act's effectiveness in addressing greenwashing.

The 2026 amendments, enacted through Bill C-15, specifically removed the requirement for environmental claims to be substantiated according to an 'internationally recognized methodology' and significantly curtailed the private right of action for enforcement proceedings.

Corporate social responsibility (CSR) has become a prominent element in contemporary marketing strategies for numerous multinational corporations. While some companies genuinely demonstrate environmental leadership, others engage in unsubstantiated greenwashing, making it challenging to differentiate between the two due to a lack of consistent regulatory oversight and fragmented reporting practices. High-profile instances, such as Exxon Mobil's advertising of an unapproved and inadequately supported carbon capture facility, highlight the limitations of existing legal frameworks in addressing this issue.

Greenwashing, also referred to as "faux CSR" or "environmental puffery," lacks a precise legal definition. The term was first coined in 1986 by Jay Westerveld, who criticized a hotel's framing of a cost-saving program as environmental stewardship. Since then, it has generally described a company's misrepresentation of its activities as more environmentally conscious than they truly are. While some definitions narrow its scope to consumers or investors, most academic perspectives acknowledge that greenwashing encompasses misrepresentations directed at any and all stakeholders, including shareholders, employees, customers, suppliers, communities, non-governmental organizations, and governments.

The pervasive nature of greenwashing is evident in its various manifestations. At the product level, it frequently appears in advertisements and labeling; a 2010 study revealed that over 95% of self-proclaimed environmentally responsible products in Canada and the United States were implicated in this form of greenwashing. It can also manifest at the firm level through claims about a corporation's overall environmental performance, or in more subtle forms, impacting a wide range of stakeholders within a company's sphere of influence.

In response to the global challenge of misleading environmental statements, many jurisdictions have been updating their competition laws to enhance accountability. Canada initially adopted such changes in 2024, introducing amendments to its Competition Act. These 2024 amendments mandated that representations regarding the environmental benefits of business activities be substantiated "in accordance with internationally recognized methodology" and also established a private right of action, allowing private parties to initiate enforcement proceedings.

However, this legislative direction shifted significantly in 2025 when the new federal government announced its intention to weaken these recently implemented provisions. The rationale provided for this reversal was concerns that the changes contributed to investment uncertainty and potentially hindered environmental efforts. This intention materialized on March 26, 2026, with the enactment of Bill C-15, which introduced the 2026 amendments to the Canada Competition Act greenwashing provisions.

The 2026 amendments, enacted through Bill C-15, specifically removed the requirement for environmental claims to be substantiated according to an "internationally recognized methodology" and significantly curtailed the private right of action for enforcement proceedings. This move represents a notable Canadian anti-greenwashing law weakening, altering the landscape for environmental claims substantiation Canada and the Competition Act private right of action.

The recent 2026 amendments to Canada's Competition Act, particularly those introduced by Bill C-15, have demonstrably detracted from the application and harmonization of anti-greenwashing law. By eliminating the "internationally recognized methodology" requirement and limiting the private right of action, these changes have weakened the accountability mechanisms available under corporate social responsibility Canada law for misleading environmental claims. This less stringent regulatory environment necessitates a re-evaluation of legal advice concerning environmental marketing claims and compliance strategies for businesses operating in Canada.

For lawyers and compliance officers, the implications are clear: the enforcement landscape for greenwashing has become less stringent, requiring a recalibration of how environmental claims are assessed and managed. The original intent of the 2024 amendments to bolster accountability for environmental claims substantiation Canada has been undermined. Experts suggest that maximizing the Competition Act's potential as a measure for corporate social responsibility accountability will require further policy reform to address these recent legislative changes.

Lawyers and compliance officers must be aware that the 2026 amendments (Bill C-15) to Canada's Competition Act have significantly weakened anti-greenwashing provisions, removing the 'internationally recognized methodology' requirement and limiting private rights of action. This necessitates a re-evaluation of legal advice on environmental marketing claims and compliance strategies for corporate social responsibility initiatives, as the enforcement landscape has become less stringent.

Source: Original reporting via Andrea Sutherland