Rule 5 of 33

Competition Act s.74.01 (greenwashing)

What are the rules about environmental claims on a website in Canada?

Section 74.01 of the Competition Act requires that any environmental claim be backed by an adequate and proper test performed before the claim is made. The burden sits on you, not the regulator. Vague wording like eco-friendly or carbon neutral needs substantiation on file.

What the rule requires

Reverse onus - you must substantiate the claim.

Who it catches

Anyone with “eco-friendly / sustainable / carbon neutral / 100% recyclable” on their site. Keurig: $3,000,000.

What this looks like in practice. Your packaging says '100% recyclable' but most towns won't actually take it. You have to prove the claim - Keurig couldn't, and paid a $3,000,000 penalty to the Competition Bureau.

How to check whether you comply

The checkList every environmental claim on your website. For each, do you hold a substantiation file? Truth is not a defence without one.

Read it yourself

We would rather you checked us than took our word for it. This links to the law as published, not to our summary of it.

Primary source Competition Bureau ↗ Real case Keurig Canada: $3,000,000 (Competition Bureau) ↗

Questions people ask

What are the rules about environmental claims on a website in Canada?

Section 74.01 of the Competition Act requires that any environmental claim be backed by an adequate and proper test performed before the claim is made. The burden sits on you, not the regulator. Vague wording like eco-friendly or carbon neutral needs substantiation on file.

Who does Competition Act s.74.01 (greenwashing) apply to?

Anyone with “eco-friendly / sustainable / carbon neutral / 100% recyclable” on their site. Keurig: $3,000,000.

How do I check whether we comply with Competition Act s.74.01 (greenwashing)?

List every environmental claim on your website. For each, do you hold a substantiation file? Truth is not a defence without one. You can also run our free website check, which tests 25 technical items in about twenty seconds, or book a review if this rule needs a documented answer.

Other rules that catch the same businesses

Rule 6Quebec Law 25 (privacy) Rule 7BC / Alberta PIPA (employee data) Rule 8Ontario job posting rules (O. Reg. 476/24) Rule 9Multi-jurisdiction posting conflict All of themThe full 33-rule table, searchable

Find out which of the 33 apply to you

The fine risk check asks a few questions about your business and tells you which rules catch you, with the deadlines. Nothing you tick leaves your browser.

Check my fine risk

This page summarises a legal obligation in plain language so you can work out whether it applies to you. It is not legal advice, and the primary source linked above governs. Last reviewed 2026-10-03.