Greenwashing Provisions Repealed: A Short-Lived Chapter in Competition Law
Well, that didn’t last long.
Just months after the Competition Act was amended to require businesses to substantiate environmental claims with “adequate and proper testing,” the Federal government has proposed repealing the greenwashing provisions in its 2025 budget.
The provisions purported to offer a new avenue for enforcement and private action against misleading environmental marketing. It also signaled a growing intersection between competition law and ESG accountability.
The Federal government now claims that the greenwashing provisions were creating investment uncertainty, with some parties apparently slowing or reversing efforts to protect the environment.
Will the absence of clear standards invite more litigation under general misleading advertising rules?
The greenwashing rules may be gone (for now, and only if the Federal budget passes), but the legal risks around environmental representations remain. The government is maintaining protections against false claims generally.
Businesses should stay alert. We can help!
