It is most likely that the changes to ensure companies and organizations communicate factual and correct information in relation to improved environmental benefits are targeted at companies in manufacturing and natural resource sectors, however, there are no stipulations to this effect. Therefore, ENGOs will also be held equally accountable for the factual accuracy of their public statements and communication content. The law firm Borden Ladner Gervais LLP has provided an excellent legal summary of the C-59 changes.
Existing legislation already prevents companies from making false claims regarding the products they produce. As an example, it’s not possible to label a food product to be free of specific ingredients that could never be in the product, such as saying beer is made from non-GM barley, which would be a deliberately false statement as there are no GM barley varieties anywhere in the world.
While Bill C-59 doesn’t make changes to any of Canada’s labelling legislation, it does specifically revise the content of the Competition Act, especially as it relates to a product’s benefits and its ability to mitigate environmental impacts or contribute to climate change mitigation. Additionally, it identifies that claims of environmental benefit and/or climate change mitigations must be substantiated in line with robust methodologies. This pertains not only to companies but also to when “A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever”. This revision applies to ENGOs as they are in the fundraising business, thereby all these greenwashing revisions are directly applicable to their statements about the use of pesticides and GM crops.
Making false or misleading environmental claims to the public is an offense, whereby courts can impose fines, imprisonment of up to 14 years, or both. The Commissioner may apply to impose fiscal penalties in confirmation of false information communication of up to $10 million for a first violation, rising to $15 million for subsequent violations, or three times the value of the benefit gained. If this value isn’t easily calculated, then the Commissioner can request 3% of the violator’s global gross revenues.
To bring a complaint, all that is required is for 6 Canadian residents over the age of 18 to make an application to the Commissioner for an inquiry into any false or misleading representation. The Commissioner has the authority to decide whether to launch an inquiry or not.
