Many professionals have expressed concerns about its complexity and the implications for their businesses. Here’s a detailed overview of what I understand of it to help you navigate these changes and ensure compliance.
What is Bill C-59 and When Will We Have to Conform?
Bill C-59, which received Royal Assent on June 20, 2024, introduces significant changes to the Competition Act, specifically targeting greenwashing practices. Companies will have until June 20, 2025, to comply with the new regulations. The goal is to ensure that all environmental claims are clear, substantiated, and understandable to the average person and to limit greenwashing in Canada
What Were the Requests of the Law Before and What Changes Now?
Previous Requirements:
Companies were required to make truthful environmental claims.
CSR and ESG disclosures needed to reflect actual business practices.
Misleading claims could result in penalties, but the burden of proof was less stringent.
Changes Under Bill C-59:
Compliance with International Standards: Companies must now ensure that their environmental claims are based on internationally recognized methodologies and adequate testing.
Burden of Proof: The burden of proof for all environmental claims lies with the companies. Businesses must have robust evidence to support their statements, as any individual or NGO can challenge these claims.
Clarity and Understandability: Environmental claims must be understandable to the average person, requiring simplification of technical language.
Enhanced Private Enforcement: Starting June 20, 2025, private parties, including NGOs and individuals, will be able to seek leave from the Competition Tribunal to enforce the provisions. This increases the potential for legal disputes significantly.
What are the Risks of Non-Compliance for Companies?
Legal Repercussions: Non-compliance can lead to significant legal issues, including fines and sanctions. Penalties can be severe, potentially up to 3% of annual worldwide gross revenues.
Reputational Damage: Misleading claims or failure to meet the new standards can result in accusations of greenwashing, damaging consumer trust and brand reputation.
Financial Penalties: Companies may face financial penalties for non-compliance, which can impact overall business performance .
What Still Needs to be Clarified?
International Standards: The specific international standards required for compliance are not yet defined, adding complexity for businesses.
Implementation Timeline: While there is a one-year compliance period, companies need detailed guidelines on what methodologies will be acceptable.
Detailed Guidelines: Clear guidelines on how to make claims understandable to the average person are necessary to avoid ambiguity and ensure compliance.
Moving Forward - Greenwashing Canada:
Bill C-59 presents both challenges and opportunities. It’s essential to understand these changes, comply with the new requirements, and use this as a chance to improve your environmental practices. Here are some steps to consider:
Educate Your Team: Ensure everyone is aware of the new requirements and the importance of clear, substantiated claims.
Audit Your Claims: Regularly review and substantiate all environmental claims to ensure they are accurate and compliant.
Simplify Communication: Make your claims easy for the average person to understand.
Stay Informed: Keep up-to-date with the latest developments and guidelines related to Bill C-59.
Here are some very good analysis of the Bill C-59
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