Are you a fashion or textile company currently doing business or operating within Canada? You might need to take actions to comply with Canada’s recent amendments to the Competition Act regarding Greenwashing. Scroll down to find out more.

The Canadian government has made amendments to the Competition Act, a law regulating trade, mergers and marketing practices in the country. The changes came into effect on 20 June 2024, in an effort to prevent Greenwashing in Canada and better manage environmental claims.

The amendments allow the Competition Bureau, Canada’s law enforcement agency overseeing competition for the benefit of Canadian consumers and businesses, to regulate deceptive marketing practices and unsupported environmental claims more effectively.

Under these new regulations, businesses are required to be able to substantiate claims made to promote the environmental benefits of a product or business interest, according to an internationally recognised methodology. These claims must be supported by adequate testing.

Updates made to the Competition Act also cover:

• More effective merger control
• Anti-competitive agreements
• Refusal to deal provision
• Deceptive marketing provisions
• Private access to the Competition Tribunal

These changes apply to Canada-based companies and foreign companies doing business or operating within Canada. Click here for more information.

Click on the link below for more information:

AMENDMENTS TO THE COMPETITION ACT

About green claims and greenwashing

When making environmental claims you must consider specific requirements of the regulations to ensure you are not greenwashing. Following a review of global green claims frameworks, we identified the below as being typical requirements to consider: 

• Truthful and clear information: Ensuring the claims accurately reflect environmental characteristics, providing clear and unambiguous information to minimise confusion.
• Emphasis on Life Cycle Assessment (LCA): Prioritising the use of LCA to evaluate and communicate the environmental impact of a product.
• Substantiation of claims: Through credible evidence, data, or recognised certifications, highlighting the importance of incorporating scientific evidence to enhance credibility and reliability.
• Scope of claim: Clearly defining whether a claim pertains to the entire product or specific packaging, offering a clear understanding of the claim’s scope.
• Standard for specific terms: Outlining criteria and standards associated with specific terms used in claims.
• Comparative claims based on clear criteria: Providing a basis for understanding the context and relevance of the comparison.
• Availability of added info on claims made: Providing information beyond the claim itself, allowing consumers to access additional details and context related to the claim.

Read UKFT’s Sustainability 101 series

UKFT members can request access to UKFT’s Sustainability 101 – Issue 2: A guide to Green Claims for further support on how to make effective green claims and reliable statements when communicating sustainability. This issue also provides a world map indicating other regulatory requirements globally which could affect your business. Email sustainability@ukft.org to request your member copy.

Watch UKFT’s Sustainability 101 webinars on demand

To go alongside its Sustainability 101 Series, UKFT is hosting a programme of webinars focused on sustainability topics such as standards, Green Claims, Greenwashing and Due Diligence. UKFT members can email sustainability@ukft.org to watch Sustainability 101 webinars on demand to learn how to adopt and integrate Green Claims principles into practice, including:

• The Sustainable Fashion Communication Playbook Masterclass: Shifting the narrative around Green Claims, with UN Environment Program
• How to avoid Greenwashing in Fashion, with the Competition & Markets Authority and Fox Williams

In March 2024, the CMA highlighted their investigation into greenwashing in fashion and textiles. Click here to read the open letter.

As part of our membership services, UKFT can support UK fashion brands, designer labels and textile companies with export paperwork, compliance, regulations and more in a wide range of markets. UKFT can also advise of the labelling requirements in all major markets throughout the world. Click here to find out more.

Not yet a member?

JOIN UKFT