CANADA Law and Practice Contributed by: Martha Harrison, Nikiforos Latrou, Eugenia (Evie) Bouras and Marissa Caldwell, McCarthy Tétrault
ing and/or promotional representations made to the public “for the purpose of promoting a product or business interest”. In other words, where a represen - tation is made “exclusively for a different purpose, such as to investors and shareholders in the context of securities filings”, the Competition Bureau is of the view that such claims fall outside the purview of the Act’s deceptive marketing provisions. However, where information contained in regulatory disclosures is then used in a business’s promotional or marketing materials, such claims will fall within the Competition Bureau’s likely enforcement scope. With respect to the requirement that claims promoting the “benefits of a business or business activity” be substantiated in accordance with an “internationally recognized methodology”, the Competition Bureau considers a methodology that has been recognised in two or more countries to be “internationally recog - nised”, provided it results in adequate and proper sub - stantiation. The Guidelines provide that the Act does not require businesses to use the “best methodology available” to substantiate claims and, where more than one internationally recognised methodology is available, any such methodology will meet the require - ments of the provision. However, where a methodol - ogy is required or endorsed by a Canadian federal, provincial or territorial government, the Competition Bureau presumes that it is consistent with interna - tionally recognised methodologies. As for representa - tions about the environmental benefits of a product, the Guidelines adopt the principles established by the courts and previous guidance with respect to perfor - mance claims, which must similarly be adequately and properly tested prior to the claim being made. Moreover, while the Guidelines confirm that the Com - petition Bureau will not hold anyone liable for breaches of the new greenwashing provision before they came into force, the Competition Bureau reserves its abil - ity to bring enforcement action against claims made prior to June 2024 under the Act’s general provisions relating to materially false and misleading statements. Lastly, the Guidelines provide that aspirational or for - ward-looking claims (eg, 2050 net zero claims) must also substantiated in accordance with an internation - ally recognised methodology and a realistic and veri -
fiable plan to accomplish the objective, with interim targets. The Guidelines offer up valuable guidance for busi - nesses; however, they only represent the Competi - tion Bureau’s interpretation of the new greenwashing provisions. As a result of amendments that came into effect in June 2025, private parties may now to seek leave to bring an action in respect of allegedly decep - tive environmental claims before the Competition Tri - bunal. These private applicants seeking redress under the deceptive marketing provisions are not confined Disclosures in advertising are subject both to industry- specific regulations and to general consumer protec - tion laws in Canada. Sectors such as banking (eg, credit services), healthcare and pharmaceuticals have additional transparency requirements to ensure that consumers are fully informed. With the rise of influencer social media-based mar - keting, advertisers should keep in mind that the Competition Act applies to any public claims made by influencers about goods or services. Influencers must clearly disclose any material connections – such as payments, gifts or partnerships – with the brands they promote. Ad Standards also published its Influ - encer Disclosure Guidelines to help advertisers and influencers meet their disclosure obligations under the Code. These include the following principles: by the Guidelines. 2.7 Disclosures • in a post, widely accepted disclosure hashtags to disclose a material connection should be used, such as “#ad” or “#sponsored”, but influencers should avoid ambiguous acronyms or mentions such as “#brand” or “#collab”; • disclosure hashtags should appear at the begin - ning of a post and should not be buried in a long list of other hashtags; • a disclosure should catch the viewer’s attention and be located where it will not be missed; • a disclosure should be in as close proximity as possible to every advertised message, and should not be available only via a link to another page or section of a website; and
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