Consultation on the Future of Competition Policy in Canada
Summary
A joint submission by civil society, academic, and private sector organizations to the Government of Canada urging the reform of the Competition Act to combat 'greenwashing'. The authors argue that the current legal framework lacks specific standards for environmental claims, which distorts the market and hinders the transition to a net-zero economy by 2050.
Key insights
- Greenwashing is identified as a significant economic problem in Canada that distorts stakeholder decisions, potentially leading consumers to choose damaging products over greener alternatives and preventing sustainability leaders from benefiting from their investments.
- The authors claim Canada lacks dedicated statutes, regulations, or law enforcement guidelines for regulating environmental claims to the general public, and that the existing Competition Act has 'severe limitations' in addressing greenwashing.
- The Competition Bureau is criticized for having no explicit mandate to incorporate environmental considerations in enforcement, no dedicated expert teams for these issues, and no requirement to disclose investigations related to greenwashing in its annual reports.
- The document recommends that the Competition Act be amended to include a purpose clause referencing environmental, health, and climate considerations, and that regulations be adopted to prohibit generic environmental claims and unverifiable future performance claims.
- The authors propose that firms be required to publicly disclose standardized information to substantiate environmental claims and mandatory disclosure of the environmental risks and impacts associated with product production and use.
- The submission suggests introducing enhanced penalties where deceptive marketing causes environmental harm, specifically targeting impacts on wetlands or protected at-risk species, and directing these funds to the Environmental Damages Fund (EDF) for Indigenous-led climate projects.
- The authors recommend expanding private rights of action to allow consumers to access the Competition Tribunal for administrative deceptive marketing violations, noting that such remedies are currently available in Québec via the Civil Code of Québec but not in other provinces.
Cite the original document
- APA
- Canadian Association of Physicians for the Environment (2023). Consultation on the Future of Competition Policy in Canada. https://cape.ca/wp-content/uploads/2023/04/CompetitionActConsultation_CQDE_CAPE_EQT_ISED.pdf#new_tab
- Chicago
- Canadian Association of Physicians for the Environment. Consultation on the Future of Competition Policy in Canada. 2023. https://cape.ca/wp-content/uploads/2023/04/CompetitionActConsultation_CQDE_CAPE_EQT_ISED.pdf#new_tab.
- Wikipedia
- {{cite press release |author=Canadian Association of Physicians for the Environment |title=Consultation on the Future of Competition Policy in Canada |date=March 2023 |url=https://cape.ca/wp-content/uploads/2023/04/CompetitionActConsultation_CQDE_CAPE_EQT_ISED.pdf#new_tab |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{canadianassociationofphysiciansfortheenvironment2023consultation, author = {{Canadian Association of Physicians for the Environment}}, title = {{Consultation on the Future of Competition Policy in Canada}}, publisher = {Canadian Association of Physicians for the Environment}, year = {2023}, month = mar, url = {https://cape.ca/wp-content/uploads/2023/04/CompetitionActConsultation_CQDE_CAPE_EQT_ISED.pdf#new_tab}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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