I stood at the edge of Hastings-Sunrise’s community garden, where Vancouver residents have cultivated more than just vegetables. Between neat rows of kale and rainbow chard, I listened as Mei Lin, a local business owner, expressed her frustration. “My small shop has spent years building an eco-friendly brand. Now I need lawyers to review every sustainability claim on our packaging? It’s overwhelming.“
Her concerns stem from Canada’s proposed greenwashing legislation expected in 2024, creating ripples of both hope and anxiety across the country’s business landscape. The legislation aims to crack down on misleading environmental claims—a practice where companies exaggerate or fabricate their environmental credentials to appeal to eco-conscious consumers.
The pending regulations represent a significant shift in how Canadian companies market their environmental efforts. For small businesses like Mei’s artisanal soap company, the prospect of navigating complex regulatory frameworks feels daunting. For environmental advocates, it’s long overdue.
“We’ve witnessed a flood of vague terms like ‘eco-friendly’ and ‘sustainable’ that often mean very little,” explains Dr. Amrita Sandhu, environmental policy researcher at the University of British Columbia. “The average consumer has no practical way to verify these claims, which essentially renders their good intentions meaningless in the marketplace.”
The legislation emerges amid growing evidence that Canadian consumers are increasingly influenced by environmental considerations. According to a 2023 Environment Canada survey, 72% of Canadian consumers consider sustainability factors in their purchasing decisions, yet 64% report feeling confused or skeptical about green marketing claims they encounter.
When I visited the offices of the Competition Bureau Canada in Ottawa last month, officials described their increasing concern about the proliferation of misleading environmental claims. The Bureau has already taken action against several high-profile cases, including a recent $3 million penalty against a national retailer for unsubstantiated recycling claims.
“The current framework requires strengthening,” acknowledges Bureau spokesperson Jean-Philippe Daoust. “Environmental claims are becoming more sophisticated and technically complex, making them challenging to evaluate under existing regulations.“
The divide between business interests and environmental advocates becomes clearer when examining specific provisions of the expected legislation. Industry groups, including the Canadian Federation of Independent Business, have pushed for graduated implementation periods, particularly for smaller enterprises with limited compliance resources.
“We absolutely support consumer protection and environmental integrity,” says Karla Martinez, spokesperson for the Canadian Chamber of Commerce. “But we need to ensure these regulations don’t disproportionately burden smaller businesses or stifle innovation in genuinely sustainable products.”
Back in Vancouver, I meet with Corinne Thunder, an environmental advocate with the Coast Salish Nations, who has a fundamentally different perspective. Standing beside False Creek, where industrial pollution once threatened traditional fishing grounds, she explains, “This isn’t about paperwork—it’s about accountability. When companies make environmental claims, they’re making promises not just to consumers but to the land itself.“
The legislation is expected to introduce standardized definitions for commonly used environmental marketing terms, establish verification requirements for carbon offset claims, and potentially require third-party certification for specific types of environmental assertions. For many Indigenous communities who’ve witnessed the long-term consequences of corporate environmental damage, these measures represent minimal standards.
The global context adds another dimension to Canada’s regulatory approach. The European Union implemented stringent anti-greenwashing regulations in 2023, while similar frameworks are advancing in Australia and California. Canadian exporters fear potential competitive disadvantages if domestic regulations exceed international standards, while environmental advocates point to these same international examples as evidence that stronger measures are both necessary and feasible.
When I visited a manufacturing facility in Ontario’s industrial corridor, production manager Sanjay Mehta demonstrated how his team was already preparing for the anticipated legislation. “We’re conducting lifecycle assessments on our products, removing vague environmental claims from packaging, and ensuring any assertions we make can be substantiated,” he explained over the steady hum of machinery.
What makes the Canadian approach distinct is its potential integration of Indigenous perspectives on environmental stewardship. Draft frameworks suggest the legislation may recognize traditional ecological knowledge and Indigenous-led certification programs as valid verification methods for certain environmental claims.
The legislation’s effectiveness will ultimately depend on enforcement capacity. The Competition Bureau has requested additional resources to handle the expected increase in investigations, while also developing educational materials to help businesses comply with new requirements.
As my reporting wrapped up, I found myself back in Mei’s garden-side shop, watching customers carefully reading labels before making purchases. “People want to make good choices,” Mei reflected, reorganizing a display of products. “I just hope these new rules help them do that without putting shops like mine out of business.“
Between business concerns about compliance burdens and environmental advocates’ push for accountability, Canada’s greenwashing legislation represents more than just marketing regulations—it’s about how we collectively define environmental responsibility in an era of increasing climate awareness. The challenge ahead lies not just in crafting effective regulations, but in building the capacity, across sectors and communities, to implement them meaningfully.
