TORONTO – Canada’s greenwashing rules are being scaled back, but it remains to be seen what the changes mean for businesses wanting to talk about their environmental record.
The federal budget released last week said the government plans to remove parts of the greenwashing laws, which were passed in June last year.
Specifically, the government says it plans to end the rule that business claims have to be backed up by “internationally recognized methodology,” as well as removing the option for third parties like environmental groups to be able to challenge claims.
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In an analysis of the proposed changes, law firm Gowling WLG says it doesn’t seem the government plans to remove the rules requiring that a product’s “green” benefits be backed up by adequate testing, but does seem to lower the bar for evidence backing up those claims.
McMillan LLP says in a bulletin that the rules will still prevent businesses from making misleading or false environmental claims, but that it’s not yet clear what the scope of the proposed amendments may be.
Environmental groups have criticized the pullback of the rules, while business groups have welcomed the proposed changes.
This report by The Canadian Press was first published Nov. 11, 2025.
Read more on the federal budget at thestar.com
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