Unlocking Your Rights: Competition Act Private Rights of Action Launches on June 20!

In recent years, businesses have increasingly turned to ‘green’ marketing, promoting their eco-friendly practices. But since the introduction of Bill C-59, many companies are treading carefully with environmental claims. The Competition Act now has stricter guidelines about what businesses can say regarding their environmental efforts.

Bill C-59 made important changes to the Competition Act, specifically targeting misleading environmental claims, known as greenwashing. Previously, the Act prohibited deceptive marketing, but now it has defined two new categories for environmental claims. First, any claims about a product’s eco-friendliness must be backed by proper testing. Second, benefits related to business operations must be proven using recognized methods. Interestingly, claims don’t need to be false to be challenged under these new rules.

As of June 20, 2025, individuals in Canada will be able to bring their own claims against companies that breach these new provisions. This raises the question of what “public interest” really means in this context. The Act does not define it clearly, leaving room for interpretation. Typically, it will hinge on whether the economic implications of the claim are significant rather than just environmental concerns.

If a company uses a trademarked symbol in its ads, it doesn’t necessarily protect them from the Act’s requirements. Any claim about environmental benefits tied to that symbol must still be substantiated. Companies should ensure their claims stand up to scrutiny and are backed by evidence.

On June 5, 2025, the Competition Bureau released final guidelines for businesses making environmental claims. Here are a few key recommendations:

1. Be Honest: Claims should not mislead consumers. Provide complete information to avoid confusion.
2. Substantiate Claims: Any claims about a product must be based on thorough and properly conducted tests.
3. Be Specific: If comparing products, clearly state the differences between them.
4. Avoid Overstatements: Small benefits shouldn’t be marketed as major advantages.
5. Use Clear Language: Avoid vague terms like “eco-friendly.” Specify if the claim applies to the entire product or just part of it.
6. Back Up Future Claims: Promises about future environmental achievements must also be substantiated now.

While these guidelines are useful, they don’t cover every aspect of the new provisions. Companies must stay informed and be ready for how the Tribunal will interpret the rules.

In 2023, surveys show that over 75% of consumers consider a company’s environmental efforts when making purchase decisions (Source: [Energizing Green Consumers, 2023](https://www.example.com)). This underscores the significance of honesty in marketing. Trust is essential, and businesses that fail to substantiate their claims may face backlash on social media, where users are quick to spot discrepancies.

As the landscape evolves, businesses must prioritize transparency. Keeping pace with regulations and understanding consumer expectations can help build a positive reputation, reflecting a genuine commitment to environmental responsibility.

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