Bill C-15 proposes amendments to Competition Act greenwashing provisions

Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, has been introduced in the House of Commons and has completed its second reading. That bill codifies the Canadian government’s unexpected proposal in Budget 2025 to amend the greenwashing provisions in the Competition Act (the Act) by:

1. Removing the requirement for businesses to substantiate environmental claims about their businesses or business activities based on internationally recognized methodology standards; and 
2. Removing the ability for third parties to bring cases directly to the Competition Tribunal under the greenwashing provisions governing environmental claims made about the benefits of a business or business activity. 

These provisions were only added to the Act in November 2023 as part of Bill C-59 and came into force on June 20, 2024, with the expanded right of private action coming into force on June 20, 2025. 

They have been the subject of considerable concern and criticism by the business community—largely driven by the uncertainty regarding the creation of the new and undefined internationally recognized methodology standard. This uncertainty, combined with the risk of private litigation by activist groups, led many companies to either significantly amend or withdraw their environmental representations altogether. For more information regarding these provisions, please see our Competition Act amendments hub.

Environmental claims

While the internationally recognized methodology standard will no longer apply, if Bill C-15 is passed without amendment to this draft provision, claims regarding the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change must still be based on “adequate and proper substantiation.” 

The proposed amendment to section 74.01(1)(b.2) is below:  

74.01 (1) A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever,

[…]

(b.2) makes a representation to the public with respect to the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change that is not based on adequate and proper substantiation, the proof of which lies on the person making the representation[.]

It is important to note the government has not proposed amending section 74.01(1)(b.1), which is the requirement that claims regarding a product’s benefits for protecting or restoring the environment or mitigating the environmental, social and ecological causes or effects of climate change must be based on an adequate and proper test. That requirement will remain and still be subject to potential private enforcement. 

Removing the requirement for businesses to substantiate claims about the benefits of a business or business activity for protecting or restoring the environment or mitigating the environmental and ecological causes or effects of climate change in accordance with internationally recognized methodology standards is a much-needed change that, if passed, could reduce significant costs and uncertainty for businesses. 

Companies also need to be aware that, regardless of any changes to the greenwashing provisions, the general misleading advertising provisions of the Act prohibiting making representations that are false or misleading in a material respect will continue to apply to all environmental representations made by companies to promote their businesses, business activities, and products. 

For more information on the provisions of the Act that apply to environmental claims, including those that will likely remain in force, see our update on the Competition Bureau’s guidance on environmental claims.

Greenwashing enforcement 

Bill C-15, if enacted in its current form, does not remove the ability for private parties to bring all greenwashing complaints to the Competition Tribunal. It only removes the ability to bring complaints under 74.01(1)(b.2)—i.e., claims made about the environmental benefits of a business or business activity. Private parties will still be able to bring claims under 74.01(1)(b.1)—i.e., claims made about a product’s environmental benefits. Both types of claims will continue to be subject to private enforcement action under the general false and misleading provisions. 

While it was anticipated that private parties would bring greenwashing cases before the Competition Tribunal in short order after the right to do so came into force in June 2025, as of the date of this update, this has not occurred. 

Key takeaway

Assuming Bill C-15 passes without any amendment to these provisions, we expect the amendments to the Act to receive royal assent and come into effect early in the new year, and likely as early as late January. Given the uncertainty and compliance costs that these provisions have caused and continue to cause for companies doing business in Canada, these changes cannot come soon enough.  

We will continue to monitor the government’s activities in these areas, in particular the timing and language of any proposed amendments.