Green, but Not Washed: Navigating Canada’s New Sustainability Marketing Regulations

Why Sustainability Claims Are Under the Microscope

Sustainability is no longer just a nice-to-have, it is a business imperative. Consumers are demanding greener products, and brands are rushing to deliver. The problem? Some of those eco-friendly claims don’t exactly hold up under scrutiny. And Canada’s regulators have noticed.

The Competition Bureau of Canada has cracked down on greenwashing, meaning brands can no longer slap “sustainable” or “carbon neutral” on their products without proof. If a claim is found to be misleading, it can open the door to legal action, competitor lawsuits, and serious reputational damage. Companies have already been taken to court for deceptive environmental marketing, and those cases are only increasing.

So, how do you market your sustainability efforts without running afoul of the law (or your competitors)? Let’s break it down.

What the New Rules Mean for Marketers

There are three big no-nos when it comes to sustainability marketing:

  • Vague or Unverified Claims – Saying your product is "eco-friendly" or "sustainable" without hard data is a hard pass.

  • Misleading Terminology – Labels like “carbon neutral” or “biodegradable” need third-party verification.

  • Cherry-Picking Sustainability Wins – You can’t highlight one green initiative while ignoring the not-so-green parts of your business. Transparency is key.

Industries like beverage alcohol, cannabis, beauty, and fashion are feeling this the most—because let’s be real, “sustainable” has been thrown around pretty loosely in these spaces.

How to Make Legitimate Sustainability Claims

Want to keep your eco-friendly messaging on the right side of the law? Here’s what to do:

  • Use Third-Party Certifications – If you’re truly sustainable, prove it. Certifications like B Corp, FSC, or Fair Trade add instant credibility.

  • Show, Don’t Just Tell – Swap the generic “we’re sustainable” for actual proof: “Our new packaging uses 90% post-consumer recycled materials.”

  • Be Transparent About Limitations – No brand is 100% sustainable (yet). Customers appreciate honesty over green fluff.

Easy Ways Your Business Can Be More Sustainable

Not sure where to start? Here are some simple ways to reduce your environmental impact without overhauling your entire business model:

  • Cut Down on Packaging Waste – Ditch the excess plastic and opt for recyclable, reusable, or compostable materials.

  • Source Responsibly – Partner with suppliers that prioritize ethical and sustainable practices.

  • Reduce Energy Consumption – LED lights, energy-efficient appliances, and even switching to a green energy provider make a difference.

  • Encourage Reuse – Offer discounts or incentives for customers who return packaging or bring their own reusable containers.

  • Educate Your Team – Make sustainability part of your company culture by training employees on waste reduction and responsible sourcing.

Marketing Strategies That Work Under the New Guidelines

Regulations may have tightened, but there are still plenty of ways to market your brand’s sustainability efforts withoutstepping into legal hot water.

  • Educate Instead of Advertise – Instead of making big, bold claims, share your sustainability journey through content marketing (think blogs, case studies, and behind-the-scenes footage).

  • Highlight Corporate Responsibility Over Product Claims – If you can’t say your product is 100% sustainable, focus on your company’s broader environmental initiatives.

  • Leverage Social Proof – Let your customers, employees, and partners do the talking. User-generated content and testimonials add authenticity.

The Future of Green Marketing in Canada

Sustainability marketing isn’t going anywhere, but the days of vague, feel-good claims are over. Moving forward, the brands that win will be the ones that back up their words with action. The key? Transparency, credibility, and a willingness to show the process, not just the results.

How Maggie Jane Can Help

At Maggie Jane Marketing, we help brands craft sustainability messaging that’s legit, compelling, and fully compliant. We know the regulations, we know how to tell a good story, and we know how to make sure your brand doesn’t end up in a legal battle over misleading claims.

Need help navigating the new rules and making sure your sustainability marketing is airtight? Let’s talk.

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