Canada's consumer watchdog has ideas about how to crack down on greenwashing

The head of Canada's competition bureau, which regulates misleading marketing, wants more power from the federal government to tackle claims about companies' environmental commitments.

Competition commissioner Matthew Boswell recently sent a letter to MPs and senators asking them to consider how to strengthen rules governing greenwashing, which is when a company makes misleading or unsupported statements to appear more environmentally friendly than it is.

Bill C-59, which was tabled last November and is making its way through Parliament, would require businesses that claim a product has environmental benefits to back up their statements with «an adequate and proper test.»

Boswell suggested that proposal could be expanded outside of just products to also include «environmental claims about a business or brand as a whole» to reflect many of the more general greenwashing complaints the bureau receives.

As an example, he mentioned companies claiming to go «net zero» or «carbon neutral by 2030.»

Such claims can be difficult to put to a test, he said, but businesses «should at least be able to substantiate them if challenged.»

The 12-page letter, which includes a number of suggestions on improving the Competition Act, was first reported on by the National Observer.

The commissioner's comments echo concerns from climate activists, who have argued that Bill C-59's proposed changes don't go far enough in regulating environmental claims.

They pointed to the European Union as an example of a jurisdiction that is going further. Under proposed EU legislation, terms like «environmentally friendly,» «natural,» «biodegradable» and «climate neutral» would be prohibited — unless a company can offer proof.

'Too narrowly focused'

Canada's