Earlier today, the Competition Bureau (Bureau) issued a Business Alert warning businesses to ensure that their eco-related claims, such as using the terms “organic”, “green” and “eco-friendly”, comply with the federal Competition Act, particularly the false or misleading advertising and performance claim provisions. See: It’s not easy being green. Businesses must back up their words.
More specifically, the Bureau provided the following compliance guidelines for businesses that want to promote their products with eco-friendly claims:
Before making environmental claims, businesses must make sure that the claims:
1. Aren’t misleading or likely to result in misinterpretation.
2. Are accurate and specific.
3. Are substantiated and verifiable.
4. Are relevant.
5. Don’t imply that the product is endorsed by a third-party organization when it isn’t.
While there are no specific provisions of the Competition Act that address environmental claims, a number of sections can potentially apply depending on the type of claim. These include the general civil and criminal misleading advertising sections and standalone performance claims section.
Several years ago, however, the Bureau, in partnership with the Canadian Standards Association (CSA), issued detailed Environmental Claims Enforcement Guidelines, which provide best practices for environmental claims and are meant to help advertisers comply with the Competition Act and Consumer Packaging and Labelling Act.
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