Green Trust or Green Hush?

A Critical Analysis of Canada’s New Anti-Greenwashing Rules and Their Implications

Abstract

This article examines the implications of Canada’s 2024 amendments to the Competition Act concerning greenwashing, as well as additional changes proposed by the government in November 2025. Amid growing scrutiny and legal challenges relating to environmental claims, the Competition Act was amended in June 2024 to require businesses to substantiate their environmental benefits claims with “adequate and proper” evidence – though the precise standards for compliance remain undefined. Additionally, since June 2025, private plaintiffs have the right to bring civil deceptive marketing claims directly before the Competition Tribunal if deemed in the “public interest”, a right that was previously reserved for the Competition Bureau. While civil society groups have welcomed these reforms, certain businesses have raised concerns about legal uncertainty, the potential chilling effect on environmental claims, and broader implications for freedom of expression. In November 2025, the Government of Canada announced its intent to revise the 2024 amendments to adjust the substantiation requirements for claims about businesses and their activities, and to prevent private lawsuits for a failure to substantiate such claims. This article analyzes the legal framework that existed prior to the 2024 amendments and 2025 proposal, the legislative process that led to 2024 amendments’ adoption, the key changes introduced, and the primary objections raised by critics. While we contend that much of the concerns are overstated, we emphasize the need for complementary measures to enhance environmental transparency and regulatory clarity.