Scope
Any business making environmental-benefit claims in Canada
Canada · act
Competition Act greenwashing provisions (Bill C-59)
Competition Act s.74.01(1)(b.1)/(b.2), as amended by Bill C-59 (2024)
In forceApplies 2024-06-20
Penalties
Civil penalties up to 3% of worldwide gross revenue (otherwise CAD 10m/15m caps); private Tribunal actions since Jun 2025
Last verified
2026-08-22
In plain language
What this law does
The strictest claims-substantiation statute in the set: product-level environmental claims require an adequate and proper test conducted before the claim; business/activity-level claims require substantiation in accordance with an internationally recognised methodology, with the burden on the business.
Core obligations
Pre-claim adequate and proper testing (product claims); internationally recognised methodology substantiation (business claims); records supporting every environmental representation
Dictionary
Terms defined in this law
- Civil penaltiesCompetition Act
- Adequate and proper tests.74.01(1)(b.1)
- Internationally recognised methodologys.74.01(1)(b.2)
- Environmental benefitBureau guidance (Jun 2025)
- Private right of actionCompetition Act s.103.1 (as amended)
- s.74.01(1)(b.1)Competition Act
- s.74.01(1)(b.2) (NEW)Competition Act
Claims
Claims connected to this source
- Carbon neutral product
- Carbon neutral company
- Net zero by 2050” (entity target)
- Climate positive / carbon negative
- Net zero flight” / “CO₂-neutral delivery
- Zero-emission vehicle
- Carbon-neutral event
- 50% lower CO₂ than conventional [product]
- 1.5°C-aligned” / “Paris-aligned
- Science-based targets validated
- Offset-free climate action
- We offset all our emissions
- Carbon insetting” (value-chain offsets)
- Removes CO₂ from the atmosphere” (carbon removal)
- Climate neutral by 2030” (near-term neutrality)
- 100% renewable energy
- Powered by renewable electricity
- Clean energy” / “green power
- Carbon-free data centres 24/7
- 100% green electricity tariff
- Zero-carbon electricity
- Recyclable
- 100% recyclable packaging
- Made with 50% recycled content
- Compostable
- Biodegradable
- Plastic-free
- Plastic-neutral
- Zero waste to landfill
- Circular by design
- Refillable — cuts packaging waste
- Paper-free office — saving trees
- Bioplastic” / “bio-based plastic
- Upcycled
- Closed-loop” production
- Free take-back programme — we recycle it
- Deforestation-free
- Sustainably sourced timber
- Sustainable palm oil
- Sustainably caught” seafood
- Nature positive
- Biodiversity net gain
- Reef-safe” sunscreen
- Water-neutral” / “water positive
- Responsibly sourced cocoa/coffee
- Palm-oil-free
- Rainforest-friendly
- Nature-based solutions” (offsetting via NbS)
- GMO-free
- Ethically made
- Fairtrade” (mark) vs “fairly traded” (generic)
- Free from forced labour
- Living wage employer
- Child-labour-free
- Empowers women in our supply chain
- Fair living income for farmers
- Sweatshop-free
- Fair wages paid throughout our supply chain
- Diverse and inclusive employer
- Net-zero portfolio by 2050
- Sustainability-linked loan — ambitious SPTs
- Sustainability-linked bond — ambitious SPTs
- ESG-screened portfolio
- Green mortgage” / “green loan
- Sustainable company
- Eco-friendly” / “green” / “planet-friendly
- Climate leader” / “ESG leader
- B Corp certified
- Committed to sustainability
- Independently verified sustainability report
- Top-rated by ESG agencies
- Climate-conscious brand
- Purpose-driven company
- Net positive” (give-back framing)
- Climate Pledge / Race to Zero signatory
- Made from ocean-bound plastic
- Non-toxic
- Chemical-free
- Natural” / “all-natural
- Plant-based
- Vegan
- Cruelty-free
- Microplastic-free
- PFC/PFAS-free
- Eco-designed
- Repairable” / “designed for repair
- Second-life batteries” / “battery repurposed
- Made to last” / “lifetime product
- Home compostable
- Sustainable fashion” / “sustainable clothing line
- Made from recycled plastic bottles” (rPET)
- Concentrated formula — 50% less packaging
- Green hydrogen
- Low-emission steel” / “green steel
- Sustainable aviation fuel” (SAF) flight claims
- Net-zero building” / “net-zero home
- Regenerative agriculture” sourcing
- 100% sustainable cotton
- Conflict-free minerals
- Water-saving” / “uses 40% less water
- Low-carbon concrete
- Carbon-neutral shipping” / “emission-free delivery
- Eco-hotel” / “sustainable stay
- Green aluminium
- Climate-friendly meal” / “low-carbon menu item
- Product carbon-footprint label (e.g. “1.2 kg CO₂e”)
- Sustainably farmed salmon
- Carbon-neutral beef
- Deforestation-free cocoa” / “deforestation-free coffee
- 100% certified sustainable cocoa” (mass-balance)
- Direct trade coffee
- 100% sustainably sourced coffee by 2025” (target claim)
- Fully traceable to farm
- Carbon-neutral cup of coffee
- Ethically sourced coffee
- Shade-grown, bird-friendly coffee
- Regeneratively grown cocoa
- Child-labour remediation programme in every sourcing region
- Net-zero supermarket by 2040
- 100% responsibly sourced own-brand fish
- No palm oil in our own-brand products
- 100% cage-free eggs by 2025
- 30% less plastic packaging since 2019
- We’ve halved food waste (SDG 12.3)
- Local — supporting local farmers
- All packaging recyclable, reusable or compostable by 2025
- Sustainable own-brand range” (eco sub-brand)
- Responsibly farmed meat
- Conscious collection” / “eco edit” (named green range)
- Made with recycled fibres
- Circular fashion — bring back your old clothes
- Living wages across our supply chain by 2030
- Fully traceable — we publish our factory list
- Net-zero fashion by 2040
- Vegan leather
- No virgin plastic by 2030
- Waterless dyeing
- Zero-waste production” / “deadstock collection
- Halve our emissions by 2030, net zero by 2050
- We've cut net GHG emissions 24.5% vs our 2018 baseline
- 27.6% of key ingredients from farmers using regenerative agriculture
- 100% responsibly sourced green coffee by 2025
- We've reached over 835,000 farmers through our programmes
- Creating better days for 4 billion people by 2030
- Nourishing 1.5 billion people with foods delivering nutrients of need
- Reduce Scope 3 FLAG emissions 45% by 2030
- No deforestation across primary commodities by end-2025
- 96.7% of primary supply chains assessed as deforestation-free
- 100% renewable purchased electricity
- 98% of packaging designed for recycling
- 100% reusable, recyclable or compostable packaging by 2030 (by volume)
- Cut virgin plastic use by a third vs baseline
- Reduce water use 30% at high-stress manufacturing sites by 2030
- Halve food waste at our factories by 2030
- All our cocoa through our own sourcing programme
- Responsibly source 12 priority ingredients by 2030
- 40% women in leadership by 2025
- 50/50 gender parity in management globally; 25% people of colour in US management
- Scope 1, 2 and 3 emissions independently verified
- 100% of suppliers compliant with our Human Rights Due Diligence by 2027
- Advancing the wellbeing of 250,000 people in our food value chain
- Executive pay tied to sustainability targets
- Paying farmers a premium for verified regenerative practices
- Engaging 2 billion people on our sustainability journey
- No industrial trans fats in our foods
- Clear, science-based front-of-pack nutrition labelling
- Growing sales while cutting absolute emissions
- Regenerative practices implemented on 50% of programme farms