Product or service claims should be accurate, on that most people would agree. But changes to the Competition Act passed in parliament in late June encased in Bill C-59 will make it incredibly difficult — and possibly very expensive — for even the most basic claims a producer group or farm makes about environmental actions.
Margot Patterson, counsel at Dentons law firm, specializes in media, brands and intellectual property. She explains that the Competition Act now requires that all organizations and companies claiming to be protecting, restoring or being environmentally friendly have adequate and proper support of those claims.
That’s not necessarily a huge hurdle, but it’s the second aspect of law that Patterson says more companies and organizations, including those in agriculture, are likely going to find challenging. “The second provision is you have to back up claim about the environmental ‘friendliness’ claimed with respect to a business or activity by internationally recognized methodology,” she says.
Failing to do so carries an up to $15 million fine. Yes, million.
(Listen/watch the full interview, article continues below)
Patterson says that there are other changes in the Competition Act that could prove costly for those claiming any environmental benefit. Now, the competition tribunal can be accessed by more than just the Competition Bureau itself. Effectively, the law opens companies, producer groups, and farmers up to a risk of litigation not previously available.
So what happens now? The Competition Bureau has announced a consultation period that’s open until late September. Patterson says this is industry’s chance to shape how the standards surrounding claims will be decided. That’s very important, as currently it’s unclear which international standards Canadian companies must adhere to.
In the absence of clarity, some companies have chosen to simply remove any environmental claims from websites, social media, and communications.
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