OTTAWA — Built Green Canada is reporting Canada’s Competition Bureau is currently developing enforcement guidelines regarding environmental claims.
Under the Competition Act, private parties can apply directly to the Competition Tribunal to challenge certain types of anti-competitive conduct.
The new changes include extending private access rights to cases involving deceptive marketing practices and a civil provision dealing with anti-competitive agreements, explains a release.
Previously, private access was limited to provisions involving refusal to deal, price maintenance, exclusive dealing, tied selling and market restriction and abuse of dominance.
The provisions that are relevant to environmental claims traditionally fell into two baskets:
- provisions that prohibit making representations that are false or misleading in a material respect; and
- a provision that prohibits making claims about the performance, efficacy or length of life of a product unless that claim is based on adequate and proper testing.
“New provisions recently enacted by parliament require that certain types of environmental claims about products be supported by adequate and proper testing and that certain types of environmental claims about businesses or business activities be adequately and properly substantiated,” the release continues.
These changes will come into force on June 20.
“It’s up to companies to commit to sustainable construction practices, be transparent about green processes and make needed changes,” the organization states. “Businesses that avoid greenwashing and embrace eco-friendly practices will stand out in the marketplace with their authenticity and push others to do the same.
Otherwise, the business will take a blow in customer satisfaction, which is economically significant. Studies have found that even small changes in a firm’s customer satisfaction score can have significant implications for corporate performance.”
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