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Following its release of the Federal Budget 2025 ("Budget 2025"), the federal government has promptly passed Bill C-15, Budget 2025 Implementation Act, No. 1 ("Bill C-15"). On March 26, 2026 Bill C-15 received Royal Assent, advancing measures set out in Budget 2025, which includes bringing into force key changes to the environmental business claims provisions of the Competition Act.
Budget 2025 targeted certain recently enacted—and controversial—provisions of the Competition Act that limited greenwashing (for additional information, see our detailed article on Budget 2025). With the passage of Bill C-15, the federal government's Competition Act amendments have become law, impacting how businesses can advertise environmental claims.
What are the Competition Act amendments impacting environmental claims?
Bill C-15's Competition Act amendments lower the evidentiary burden for substantiating environmental claims about a business or business activity and removes the ability for private parties to prosecute such claims directly before the Competition Tribunal. Specifically, Bill C-15:
- Removes the Competition Act's requirement in section 74.01(1)(b.2) to substantiate business or business activity environmental benefit claims in accordance with an "internationally recognised methodology."
- Since its implementation in 2024, this "internationally recognised methodology" requirement has caused confusion among businesses and other interested parties regarding what type(s) of international recognition and methodologies are sufficient to meet this legislative requirement (in particular, where claims are made concerning new environmental technologies for which methodologies may not yet exist nor have international recognition).
- It is important to note that, despite this amendment, environmental claims about a business or business activity will still have to be based on "adequate and proper substantiation."
- Introduces new provisions which remove the ability for private parties to prosecute alleged non-compliant environmental claims about a business or business activity via the Competition Tribunal. However:
- The Commissioner of Competition may still investigate and enforce penalties against non-compliant environmental business claims, and
- Private parties may still apply for permission to challenge:
- (i) Product level environmental benefit claims on the basis that they are not substantiated by an adequate and proper test (in accordance the prohibition stipulated in section 74.01(1)(b.1), which has not been amended).
- (ii) Environmental claims of various types on the basis they are false or misleading, contrary to the broad prohibition stipulated in section 74.01(a) of the Competition Act.
Navigating environmental claims in a post-Budget 2025 world
As a result of these changes brought by Bill C-15, businesses are afforded some relief from the above-noted confusion and associated risk in advertising the environmental benefits of their business or activities, such as promoting their future environmental performance.
Bill C-15's revisions provide greater clarity to businesses about the substantiation required for certain "green" claims to comply with the law. Going forward, businesses may be less likely to engage in "greenhushing," notably in respect of business or business activity environmental benefit claims.
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