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We applaud the Canadian government for transparency on environmental claims through Bill C-59’s changes to the Competition Act but we think there are unintended consequences. Our latest submission to the Competition Bureau outlines our concerns that the changes will choke off business confidence and innovation in sustainability.
By Resource Works
More News and Views From Resource Works Here
Uncertainty Creates Challenges
One of our biggest concerns with the changes is the lack of clarity in key terms. “Adequate and proper testing” and “internationally recognized methodology” are vague and leave businesses unclear on how to comply. Many industries especially in the energy sector already follow Canadian and international standards for environmental reporting. Without guidance, companies risk violating the law or worse, staying silent on their sustainability efforts for fear of legal consequences.
The Chilling Effect on Innovation
The expanded private rights of action, which allow individuals and groups to bring legal challenges against businesses, introduce a new risk—a potential chilling effect on sustainability communication. Companies that are actively working toward net-zero commitments, emissions reductions, and innovative green technologies may hesitate to publicly discuss their progress if there’s a risk of being taken to court based on undefined criteria.
Emerging industries carbon capture, hydrogen energy and biofuels are still developing best practices for measurement and reporting. Under the current changes, these companies could be sued for acting in good faith. This uncertainty will discourage investment in Canadian clean energy solutions, making us less competitive globally.
Safeguards Are Needed
Resource Works believes stronger safeguards are needed to protect businesses from frivolous or political complaints. Without eligibility criteria for complainants or requirements for initial evidence, the changes will open the door to unnecessary legal battles that drain resources from real sustainability work.
To strike the right balance, we recommend:
- Industry guidelines to define acceptable testing methods and standards.
- A phased transition period to allow businesses time to adjust.
- Safeguards against bad-faith complaints, including penalties for those who abuse the system.
- Sector-specific guidance, particularly for industries involved in energy and emerging green technologies.
- Safe harbour provisions to protect companies that act in good faith but may need to refine claims over time.
Moving Forward Together
Canada has an opportunity to lead the way in environmental integrity while fostering innovation in sustainability. By refining Bill C-59 to ensure clarity, fairness, and practicality, we can protect consumers from misleading claims without stifling the businesses that are genuinely working toward a greener future.
We encourage the Competition Bureau to continue working with industry stakeholders to ensure that the amendments enhance transparency without discouraging innovation. At Resource Works, we remain committed to supporting policies that promote both environmental responsibility and economic sustainability in Canada.
Click here to read our submission
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