New rules crack down on misleading climate claims

Changes to law draw praise from environmental advocates - and outrage from oil companies

- MARK RAMZY

Commissioner of competition Matthew Boswell has pushed for a broader mandate that would tackle “forwardlooking environmental claims about a business or brand as a whole,” like claims to be “net-zero” or “carbon neutral by 2030.”

OT TAWA A new set of federal rules meant to crack down on misleading environmental claims is setting off a clash between climate advocates and fossil fuel groups.

To some, it’s a “watershed” moment for corporate accountability over the climate crisis. To others, it’s an overreach that will “silence” an energy industry that claims it’s cleaning up its act.

At issue are incoming changes to Canada’s competition law that can penalize businesses that don’t provide evidence for claims they make about the environmental impact of any products or business practices — an attempt to deter a rise in what’s been dubbed “greenwashing.”

But what do these new rules actually do? Here’s what you need to know.

Current law too ambiguous

Existing laws on deceptive marketing have given the Competition Bureau the power to tackle unsupported environmental claims about specific products or services. That has resulted in penalties against three companies since 2016: Keurig over coffee pod recycling claims and Volkswagen and Audi over claims about their diesel engines’ emissions.

But as concerns about the climate crisis drive demand for “green” products, complaints about misleading environmental claims are also increasing. However, there was no law specific to cracking down on dubious environmental claims and critics warned existing rules didn’t have enough teeth to tackle the issue.