Canada’s Competition Bureau has a mandate to act as a watchdog over monopolies and ensure truth in advertising. But as the world moves to transition its economy toward net-zero emissions, a rise in false and misleading advertising has some saying the independent law enforcement agency needs more powers to combat a “scourge of greenwashing.”
In a March 31 submission, Ecojustice called on the government to, among other measures, amend the act to strengthen Canada's deceptive marketing regime and address “systematic greenwashing.” “We are assessing the key themes raised by respondents, including the issue of greenwashing,” said the ministry spokesperson in an email to Glacier Media.
Researchers at the Environmental Law Centre found that over that period, the bureau entered into 14 consent agreements with companies in cases connected to environmental claims, according to its own submission to the ministry. “This is a whack-a-mole solution to a systemic problem. It relies on people to submit complaints one by one.”
In the same way the U.K. and Australia have taken action, Hulse says an emboldened Competition Bureau in Canada could carry out similar market studies and dedicate expert teams to wade through the often complicated science surrounding the environment and climate change.Competition Bureau knows it has a problem In September 2022, the anti-trust regulator invited nearly 400 people from 40 countries to Ottawa to attend a summit designed to respond to a rising number of greenwashing cases.
In one example, the bureau considers a case where a customer buys what’s advertised as a high-efficiency air conditioner, only to learn it’s the lowest efficiency model on the market, and holds no third-party certification. In the end, the consumer’s electricity bills are actually higher than they were before.
“Green claims do change people's shopping behaviour,” he said.. “Studies show it does matter. Let’s just take that at face value and go with it.” “They are trying to influence politicians,” said Hulse. “They’re saying, ‘You should throw money at us. You should make laws favourable to us.’”