Bill C-59: How to Adapt Your Marketing Strategy to Avoid Misleading Claims
Share:
This law, which went into effect on June 20, 2025, aims to protect consumers from misleading “green” promises, while promoting truly sustainable businesses by preventing unfair competition.
Reversing the Burden of Proof
This legislation fundamentally changes how companies must justify their environmental communications. Previously, it was up to authorities to prove that a green claim was misleading. Now, it’s on companies to prove the truth of every such claim at the time they make it.
In practical terms, the reversal of the burden of proof means that any public environmental statement must be based on verifiable evidence and an internationally recognized methodology, with sufficient, appropriate supporting elements.
This legislation also puts an end to vague environmental slogans. If your packaging reduces the carbon footprint by 30%, you can no longer simply proclaim that your company is “now sustainable,” as this is not specific enough. You have to be precise: “Our new packaging has reduced the GHG emissions of this product by 30%,” with supporting documentation such as a life-cycle analysis.
The use of vague terms like “green,” “sustainable,” “environmentally friendly” or “100% natural” without concrete proof can lead to serious legal consequences. Authorities evaluate your messages based on the overall impression they give to the average consumer, making any exaggeration or omission particularly risky.
Financial Penalties and New Appeal Procedures
The consequences are severe: a first offence carries a fine of up to $10 million, while a repeat offence can result in a fine of up to $15 million. For large companies, the maximum fine can reach 3% of their total revenue.
A major new feature that multiplies the risks: as of June 2025, prosecution of deceptive marketing will no longer be the exclusive prerogative of the authorities. Instead, consumers, environmental groups, and competitors will be able to file complaints directly with the Competition Tribunal regarding greenwashing, without even having to prove that they have suffered personal injury. In practical terms, an NGO or a competitor can report your misleading advertising campaign, leading to increased scrutiny of your communications.
Beyond financial penalties, the reputational consequences can be just as damaging. Most Canadians are already skeptical of corporate environmental claims. A case of greenwashing can irreparably compromise your credibility.
Five Strategic Adaptation Priorities
- Educate your teams about the latest requirements. Organize training sessions on Bill C-59 for all employees involved in your communications. You should also inform your partner agencies about these new regulatory obligations.
- Build up a comprehensive documentation file. Implement the following policy: no environmental claim without supporting evidence. This includes lab tests, life-cycle analyses, official certifications (ISO 14,001, B Corp), and reports from independent experts. Develop a dedicated system where each claim has its own file.
- Strive for specificity over broad statements. Instead of saying, “Our company is sustainable,” consider using a concrete example, such as “We have reduced the use of virgin plastic in our packaging by 50% since 2019.” Avoid using vague superlatives. Be explicit about the boundaries of your claims, and always provide the underlying evidence or calculations that support your assertions.
- Implement a thorough investigation procedure. Create a cross-functional committee comprising marketing, legal and sustainability experts who will review all communications before publication. Give them the authority to suspend a non-compliant campaign. Outsourcing auditing to reputable third parties can enhance the credibility of your approach.
- Be open and honest about your current limitations. Don’t shy away from acknowledging areas that need improvement. For instance, you could say, “This product uses non-recycled plastics, as there is no better alternative available at the moment.” This openness highlights your genuine progress and prevents the pitfall of green hushing, where some companies stay quiet out of fear of consequences.
Integrating Compliance into Corporate Governance
Conforming to Bill C-59 necessitates a long-term, organized strategy. Draw up an annual sustainable development communications plan, anticipating and documenting all environmental statement you make. This approach demands leadership involvement: environmental compliance is a top-level concern that transcends marketing.
A Strategic Opportunity
These regulations may seem limiting, but they provide a competitive edge to forward-thinking companies. In an era of growing distrust among consumers, transparency and authenticity have become key differentiators. Organizations that adapt quickly will gain a significant lead over their slower-moving competitors.
Bill C-59 should not just be viewed as a regulatory constraint, but as an opportunity to genuinely increase the value of your sustainable initiatives. By becoming an exemplary communicator, you can help raise standards in your sector and protect yourself from financial and reputational risks.
The era of approximate environmental communication is over. Make way for a more precise and responsible approach that will enhance your reputation and that of your industry as a whole.
