Canada’s Competition Bureau has released finalised guidelines under the country’s new anti-greenwashing legislation, potentially opening the door for climate advocacy groups to launch legal action against oil and gas companies over misleading environmental claims.
The updated rules clarify how the independent law enforcement agency will interpret and enforce provisions targeting deceptive environmental marketing. They follow legislation passed last year by the federal government to crack down on greenwashing—the practice of exaggerating or fabricating the environmental benefits of products or corporate practices.
Effective from 20 June, the guidelines will allow individuals and third-party organisations to file applications directly with the federal Competition Tribunal, alleging breaches of deceptive marketing provisions.
Greenpeace Canada welcomed the move and signalled its intent to act swiftly. “We will be following oil and gas companies’ public pronouncements very carefully, with an eye to using the new tools in this legislation,” said Keith Stewart, a spokesperson for the organisation.
In anticipation of the regulatory tightening, several Canadian oil and gas firms had already begun scrubbing their websites of environmental claims. Last year, the Pathways Alliance—representing major oil sands producers—removed all references to its previous pledge to reach net-zero emissions from oil sands production by 2050.
The newly issued guidelines require businesses to substantiate environmental claims using internationally recognised methodologies. Future-oriented claims, such as net-zero targets, must be backed by verifiable plans and evidence of concrete actions already underway.
However, industry groups expressed concern over the implications. Kendall Dilling, president of the Pathways Alliance said, “We believe the amendments to the Competition Act related to environmental claims should be removed to allow businesses to speak openly and truthfully about what they are doing to improve environmental performance and without fear of meritless litigation by private entities.”
