Competition Bureau kicks off ‘greenwashing’ review

The Competition Bureau is moving to clarify the federal government’s controversial new anti-greenwashing rules while also recommending businesses not relay specific timelines about their emissions reduction goals in their marketing materials.

On Monday, the bureau kicked off its consultation on new Competition Act rules on environmental advertising, releasing a bulletin on the amendments that came into force on June 20. The public consultation is open until September 27.

“The Competition Bureau has received a large number of requests for guidance on the interpretation of new provisions of the Competition Act aimed at greenwashing,” wrote competition commissioner Matthew Boswell. “Through our consultation on these new provisions, we will provide guidance that will offer transparency and predictability for Canadians.”

The bureau’s high-level tips for businesses that want to make environmental claims in their advertisements include being truthful, not misleading consumers, making sure their claims are properly and adequately tested, and avoiding exaggeration.

Once the new provisions are in effect, the bureau said it intends to consider the “general impression” conveyed by an advertisement, “as well as its literal meaning.” That means an entire ad, including its words, graphics and overall layout, will have to meet Competition Act standards.

“The bureau will do its part to ensure that greenwashing does not undermine the good intentions of consumers and businesses who want to drive meaningful change,” the bulletin states.

This language taps into criticisms of the advertising rules from opponents who believe they will hamper companies that are trying to make “meaningful change” by taking a risk on emissions reduction projects.

When the bill passed, Premier Danielle Smith, Energy Minister Brian Jean and Environment Minister Rebecca Schulz said it would prevent private entities from sharing truthful, evidence-based information.

“This kind of absurd authoritarian censorship will only work to stifle many billions in investments in emissions-reducing technologies,” the government officials said.

Alberta’s government, oil and gas companies, and business advocacy groups have voiced opposition to the rules, which were added to a federal omnibus budget bill during committee stage this spring.

Oil companies and advocacy groups responded by scrubbing their websites of content that promised reduced emissions. For example, the Pathways Alliance, a consortium of the country’s largest oil producers, removed references to its commitment to reach net-zero emissions by 2050.

The Competition Bureau’s new guidance suggests that was the correct move.

It recommends that businesses avoid making “aspirational claims about the future,” including claims about being carbon neutral by a certain date.

“It is commendable when well-intentioned businesses set aggressive goals and timelines about future environmental performance,” the bureau states. “However, there is a significant risk that these claims might become greenwashing.”

On Monday, Jean’s office told Alberta Today the bulletin shows how “unfair and unworkable” the new rules are, calling them “unclear, undemocratic and open to widespread abuse.”

“We actually have the Competition Bureau telling Canadian companies that they are better off not publishing any aspirational claims about emissions targets because they might be breaking this ridiculous new law,” Jean’s office said in a statement.

“They are telling companies not to publicly announce their ambitions so as to not get into trouble. This does not benefit Canadians.”

Mark Cameron, Pathways Alliance’s vice-president of external relations, told Alberta Today the organization intends to participate in the consultation process and will be working with its members to develop a submission.

“We have always strived to be transparent and firmly believe in the accuracy of our environmental communications,” Cameron said in a statement. “We believe our industry has a key role to play in addressing environmental impacts of oilsands production including helping Canada achieve its greenhouse gas emissions targets, while also supporting a vibrant economy and providing Canadians with secure access to affordable energy.”

Greenpeace senior researcher Nola Poirier told Alberta Today her organization intends to provide the bureau with feedback on greenwashing by banks, fossil fuels and plastics producers.

“You should easily be able to provide evidence that what you’re saying is true or you shouldn’t be saying it,” she said. “That’s kind of how society functions in almost every way.”

Poirier said Pathways Alliance has already made claims loudly — including through Super Bowl ads — and removing information from its website “doesn’t undo the damage that already happened.”

The Competition Bureau promised to provide “further guidance” on a provision of the new law that has received heightened criticism — the requirement that an advertiser back up claims about the environmental benefits of its operations by proving they are true in accordance with “internationally recognized methodology.”

The consultation questions ask “what internationally recognized methodologies should the bureau consider” for this regulatory measure, and “are there limitations to these methodologies that the bureau should be aware of?”

One of the critics of the methodology is Business Council of Alberta president Adam Legge. In June, he took aim at the feds’ failure to define this aspect of the law clearly from the start.

“This uncertainty will have consequences and will result in less public disclosure on Canada’s environmental progress at a time when we would like to encourage more,” Legge said.

According to Calgary Chamber president Deborah Yedlin, the new rules contravene Canadian securities regulations by potentially limiting what information companies can relay to their shareholders.

“It’s preventing people from speaking to how they’re investing their money, the standards that they’re applying to invest their capital, and the kinds of initiatives that they are putting in place that will achieve the objectives behind those investments,” Yedlin told Alberta Today.

Speaking to the media Monday, federal Innovation Minister François-Philippe Champagne declined to provide examples of greenwashing he wants the Competition Bureau to crack down on, saying the consultations will “inform” the implementation of rules.

“Let’s see what we see in the consultations. We’ll certainly have more to say in the future,” he said in response to a question from Parliament Today, while touting “record investments” to beef up the bureau’s enforcement efforts.

The province is considering legal action against the reforms, including a potential constitutional challenge or a Sovereignty Act motion.

Following the law’s enactment, the Alberta government killed the Canadian Energy Centre, also known as the energy war room, which pumped out pro-oil and gas materials. Its activities were brought under the mandate of the premier’s office, which is immune from penalties.

Even before the new rules came into effect, the Competition Bureau investigated and prosecuted greenwashing. In 2022, it settled with Keurig, which agreed to pay a $3-million penalty over environmental claims about K-cups.