Reforming the Competition Act to Address Deceptive Green Marketing and Integrate Sustainability

The submission by Ecojustice and the Canadian Association of Physicians for the Environment (CAPE) proposes comprehensive amendments to the Competition Act to align it with Canada's net-zero and environmental commitments. The authors argue that current laws fail to address 'greenwashing'—deceptive environmental claims—which distorts the market, penalizes genuinely sustainable businesses, and misleads consumers. Key recommendations include amending the Act's purpose clause to recognize sustainability, legislating specific prohibitions against common forms of greenwashing (such as misleading carbon offset claims and generic 'eco-friendly' labels), and expanding the public's ability to challenge deceptive marketing through the Tribunal without needing to prove specific damages. Additionally, the document suggests establishing a sustainability taskforce within the Competition Bureau, allowing for 'public benefit' considerations in merger assessments, and creating exemptions for competitor collaborations that advance environmental protection.

• Greenwashing is described as a systemic market distortion in North America, with a poll of 1,491 top-level executives indicating that 72% of North American respondents admitted their organization is guilty of the practice.
• The authors argue that the current Competition Act is insufficient because it does not incorporate sustainability goals, fails to encourage green innovation, and does not address market failures related to pollution, such as cost externalities.
• The document proposes amending the Competition Act's purpose clause to explicitly promote 'efficiency, sustainability, and adaptability' to achieve Canada's commitments regarding the environment, health, climate change, and human rights.
• The submission recommends legislating specific prohibitions against deceptive practices, including the use of sustainability labels not based on certification schemes, generic environmental claims without proof of 'excellent environmental performance', and claims that carbon credits offset emissions.
• The authors suggest that representations about the environment, climate, and health should be legally presumed to be 'material' to avoid the need for consumers to prove that a misrepresentation influenced their purchasing decision.
• To improve enforcement, the document recommends allowing any person to apply to the Tribunal for leave to bring claims for environmental deceptive marketing without the current requirement to prove causation and damages.
• The submission calls for the creation of a sustainability taskforce within the Competition Bureau and the granting of formal market study powers to the Commissioner of Competition to move from a reactive to a proactive enforcement model.
• The authors argue that competition law should be amended to allow 'public benefit' considerations in merger assessments, enabling the Tribunal to impose conditions on mergers to protect environmental or human rights goals.
• The document recommends introducing an 'environmental defence' to conspiracy claims to encourage competitor collaborations that phase out environmentally damaging products or processes.

APA

Canadian Association of Physicians for the Environment (2023). Reforming the Competition Act to Address Deceptive Green Marketing and Integrate Sustainability. https://cape.ca/wp-content/uploads/2023/04/2023-03-31-Ecojustice-and-CAPE-submission-to-ISED-re_-Competition-Act-final.pdf#new_tab

Chicago

Canadian Association of Physicians for the Environment. Reforming the Competition Act to Address Deceptive Green Marketing and Integrate Sustainability. 2023. https://cape.ca/wp-content/uploads/2023/04/2023-03-31-Ecojustice-and-CAPE-submission-to-ISED-re_-Competition-Act-final.pdf#new_tab.

Wikipedia

{{cite report |author=Canadian Association of Physicians for the Environment |title=Reforming the Competition Act to Address Deceptive Green Marketing and Integrate Sustainability |date=31 March 2023 |url=https://cape.ca/wp-content/uploads/2023/04/2023-03-31-Ecojustice-and-CAPE-submission-to-ISED-re_-Competition-Act-final.pdf#new_tab |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{canadianassociationofphysiciansfortheenvironment2023reforming, author = {{Canadian Association of Physicians for the Environment}}, title = {{Reforming the Competition Act to Address Deceptive Green Marketing and Integrate Sustainability}}, institution = {Canadian Association of Physicians for the Environment}, year = {2023}, month = mar, url = {https://cape.ca/wp-content/uploads/2023/04/2023-03-31-Ecojustice-and-CAPE-submission-to-ISED-re_-Competition-Act-final.pdf#new_tab}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }