Janis Sarra is professor of law emerita at Peter A. Allard School of Law at the University of British Columbia.
The purpose of the Competition Act is to encourage competition in Canada to promote the efficiency and adaptability of the Canadian economy. And part of healthy competition is that companies accurately represent their products and services to consumers. The two new provisions augment existing protection of consumers from deceptive market practices.
The second new provision limits how a company can make a representation to the public with respect to the benefits of a business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change. A company cannot do so for a claim that is not based on adequate and proper substantiation in accordance with internationally recognized methodology.
Disclaimers, such as that the claims are based on best available science, make sense as climate science is continuing to evolve. What is key here is that consumers need protection from the plethora of claims regarding environmental performance so they are able to make informed decisions in their purchases.
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