Proposed legislation would scale back anti-greenwashing provisions in Competition Act – MLT Aikins

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Summary

On November 18, 2025, the federal government proposed Bill C-15 to implement certain provisions from the 2025 federal budget, which includes important revisions to the anti-greenwashing provisions of the Competition Act introduced in June of 2024.

Importantly, the proposed amendments include remo…

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Q1: What are the proposed changes to the anti-greenwashing provisions in Canada's Competition Act under Bill C-15?

A1: The proposed Bill C-15 aims to scale back certain anti-greenwashing provisions that were initially introduced in the Competition Act in June 2024. These amendments are part of the 2025 federal budget implementations, yet specific details on the provisions being removed or altered have not been fully disclosed. The goal of these changes is believed to be to streamline regulations and address concerns from various stakeholders about the existing regulatory framework.

Q2: How does the Canadian Competition Act contribute to preventing greenwashing practices?

A2: The Canadian Competition Act is a federal law that governs competition in Canada by containing both criminal and civil provisions to prevent anti-competitive practices. It includes measures to combat misleading advertising and false claims, which are crucial in tackling greenwashing by ensuring that companies do not make false environmental claims about their products or services.

Q3: What role does the Competition Bureau play in enforcing the Competition Act, particularly concerning greenwashing?

A3: The Competition Bureau is the independent law enforcement agency responsible for administering and enforcing the Competition Act. It ensures that markets operate competitively and handles cases related to misleading advertising, which includes greenwashing. The Bureau undertakes investigations and can take action against companies making false environmental claims.

Q4: What insights do recent scholarly articles provide on corporate greenwashing behavior?

A4: Recent scholarly articles highlight how religious social norms can influence corporate greenwashing behavior. For instance, firms in areas with high religious adherence are less likely to engage in greenwashing. Additionally, advancements in natural language processing are being developed to detect greenwashing in corporate communications, showcasing the interdisciplinary approach in addressing these environmental deceit practices.

Q5: How accurate are new methodologies in detecting greenwashing using language models?

A5: Recent studies have developed preliminary methodologies using language models to quantify greenwashing risk, achieving an average accuracy score of 86.34% and an F1 score of 0.67. These models are fine-tuned with datasets on sustainability reports, indicating a promising direction for the automated detection of greenwashing.

Q6: How have advancements in natural language processing contributed to detecting greenwashing?

A6: Advancements in natural language processing (NLP) have been significant in detecting greenwashing. A comprehensive survey of NLP methods reveals that tasks are broken into intermediate steps to identify misleading climate-related corporate communications. The development of these methods and datasets has propelled the field forward, providing new tools to tackle greenwashing.

Q7: What are the future research directions identified for improving greenwashing detection?

A7: Future research directions include enhancing dataset comprehensiveness, improving model accuracy, and addressing current limitations in detecting nuanced and complex greenwashing practices. Scholars suggest further exploration into the integration of interdisciplinary methods and broader applications of NLP models to refine detection capabilities.

References:

  • Competition Act - Wikipedia
  • Leveraging Language Models to Detect Greenwashing
  • Corporate Greenwashing Detection in Text -- a Survey
  • Does religiosity influence corporate greenwashing behavior?