The rise in demand for “green”, or more environmentally friendly, products corresponds with an increase in greenwashing – producers creating the impression that their products are “greener” than they really are.
Many Canadian consumers consider the environment when making buying decisions. In response to consumer demands for sustainable products, or products with a reduced environmental impact, businesses have increased their supply of “green” products.
Green products generally try to reduce waste, conserve resources, and/or minimize pollution. Some might be durable and long-lasting, or easily recyclable or compostable. Others might be energy efficient, or made with materials that are readily available, renewable, or recycled. And some might be produced without using toxic chemicals, or in a way that contributes less to greenhouse gas emissions. Unfortunately, not all products are as green as they may appear.
The increase in green products in Canada has come with an increase in “greenwashing”. Greenwashing involves creating a general impression, or leading the public to believe, that a product is “greener”, or more sustainable or environmentally friendly, than it is. Greenwashing can expose a business to liability and significant fines because it is illegal.
Prohibition against and penalties for greenwashing
Section 74.01(1)(a) of Canada’s Competition Act prohibits a business from making a false or misleading representation to the public for the purpose of promoting a product. This rule captures a broad range of representations, including false or misleading environmental claims about a product – that is, greenwashing.
A corporation that engages in greenwashing may be ordered to pay an administrative penalty of up to $10 million, three times the value of the benefit the corporation derived from the greenwashing, or 3% of the corporation’s annual worldwide gross revenues. In addition, the corporation might be ordered to make payments to people who bought the products sold using greenwashing.
Greenwashing example: Keurig Canada Inc.
Canada’s Competition Bureau (the Bureau) is the federal law enforcement agency responsible for investigating misleading advertising and deceptive marketing practices, including greenwashing. Several years ago, the Bureau investigated Keurig Canada Inc. (Keurig) for greenwashing. At issue were Keurig’s claims that its single-serve, single-use coffee capsules, known as K-Cup pods, could be recycled. Keurig made these claims throughout Canada on its websites, in social media, through text and logos on K-Cup pods, and on K-Cup pod packaging.
The Bureau’s investigation concluded that Keurig’s claims about the recyclability of its K-Cup pods were false or misleading in areas where they were not accepted for recycling. The Bureau found that, outside of the provinces of British Columbia and Quebec, municipal recycling programs did not widely accept K-Cup pods.
The Bureau’s investigation also concluded that Keurig’s claims about the steps involved in preparing K-Cup pods for recycling were false or misleading in certain municipalities. Keurig’s claims gave consumers the impression that they could prepare the pods for recycling by peeling off the lid and emptying out the coffee grounds. However, some local recycling programs required consumers to take more steps.
Keurig ended up reaching an agreement with the Bureau to resolve the issue. The agreement required Keurig to:
- pay a $3 million administrative monetary penalty, donate $800,000 to a Canadian charitable organization focused on environmental causes, and pay $85,000 towards the costs of the Bureau’s investigation,
- change its recyclability claims and K-Cup pod packaging,
- publish corrective notices about the recyclability of its products on its websites, on social media, in national and local news media, in the packaging of all new brewing machines and via email to its subscribers, and
- enhance its corporate compliance program to promote its compliance with the Competition Act and prevent deceptive marketing issues in the future.
Although justice was achieved in the Keurig case, it is but one example of greenwashing. There are many others, in Canada and around the world. In 2021, a global review by the International Consumer Protection and Enforcement Network estimated that 40% of green claims made online could be misleading consumers.
What can you do about greenwashing?
Greenwashing harms consumers by making it difficult for them to make informed buying decisions. Consumers may believe they are making environmentally friendly choices when they are not, and they may end up spending more on products that don’t deliver the promised benefits. These things undermine consumer confidence.
As an informed consumer, with some knowledge of greenwashing, there are several things you can do to help make sure your buying decisions benefit the environment.
- Take time to reflect on the environmental claims that businesses make, instead of taking them at face value.
- Be cautious about buying products that make vague environmental claims – like “eco-friendly” or “safe for the environment”.
- Try not to be persuaded by nature-themed colours, images and symbols used on product packages and in marketing.
- Research the environmental claims a business makes or contact the business to ask about them.
If you suspect a business of greenwashing, you can avoid buying their products and look for more reliable alternatives. If you are interested in going further, to help prevent others from being influenced by deceptive environmental claims, you can report suspected greenwashing to the Bureau using an online complaint form.
To learn more about greenwashing, and what is being done to prevent it, you can visit the Bureau’s website.
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DISCLAIMER The information in this article was correct at time of publishing. The law may have changed since then. The views expressed in this article are those of the author and do not necessarily reflect the views of LawNow or the Centre for Public Legal Education Alberta.
About Jennifer Taylor
