Bill C-59: What Canada’s New Greenwashing Law Means for Tourism
What changed, how it affects tourism, and the steps you should consider taking.
In May 2024, the Government of Canada passed Bill C-59, a wide-reaching budget bill with a big impact for businesses promoting their environmental credentials. Especially relevant to the tourism industry are the bill’s new rules targeting greenwashing through amendments to the Competition Act.
C-59, among its various provisions, amends the Competition Act. It specifically addresses greenwashing, defined as unsubstantiated or misleading environmental claims used in the promotion of products or services.
Now that these changes are law, tourism businesses across Canada need to pay close attention. The updates mean businesses must have solid evidence to back up any environmental claims, or risk facing penalties.
These new rules apply to you, whether you’re a hotel promoting your new energy-efficient design, a tour operator highlighting your commitment to conservation, or a destination marketing organization talking up your community’s “eco-friendly” experiences. Here’s what you need to know, and how to best prepare.
What Bill C-59 Says About Environmental Claims
Bill C-59 amends section 74.01 of the Competition Act to clarify that any claim about a product or business practice’s environmental benefits must be based on “adequate and proper substantiation.”
In plain wording: if you say it, you must be able to prove it.
This applies to:
- Advertising claims (“our hotel is carbon neutral”)
- Website copy (“the greenest tour in Canada”)
- Social media posts (“book with us to support local conservation”)
- Labels or packaging (“100% sustainable ingredients”)
If your claim is found to be false or misleading, in the case of a complaint, the Competition Bureau now has more power to seek penalties, including substantial fines and orders to remove or correct misleading information. The Bureau has already stated that greenwashing is an enforcement priority.
What Counts as “Adequate and Proper” Substantiation?
While the law doesn’t prescribe a single method of proof, the Competition Bureau’s guidance (and international best practice) suggests that claims should be:
- Specific and accurate (avoid vague terms like “eco-friendly” without explanation)
- Verifiable (supported by credible data, carbon footprints, certifications, verifications, lifecycle analyses, etc.)
- Up to date (based on current practices and not outdated achievements)
- Contextualized (not cherry-picking a small green feature to mask larger impacts)
In other words, having a recycling bin in your lobby won’t justify advertising your property as “zero waste” unless that’s demonstrably true through a waste audit.
Why This Matters for Tourism
The tourism sector is one of the most visible users of environmental marketing. Many travellers – 84% according to Booking.com, and especially younger demographics – seek out sustainable options and value alignment with businesses that care about the planet.
That’s a great thing, but it also means there’s a risk if claims are inadvertently overstated.
Examples of common pitfalls include:
- Promoting a “green experience” without verifying supply chain practices
- Advertising net-zero commitments without credible plans and progress tracking
- Using words like “sustainable” without a clear definition or substantiation
- Highlighting isolated initiatives while ignoring broader environmental impacts
Under Bill C-59, these types of practices could now trigger legal consequences. Beyond that, they can also erode trust and reputation with customers and partners.
While Bill C-59 aims to ensure that environmental claims are credible and not misleading, it’s equally important to guard against the risk of greenhushing – when businesses, out of fear of scrutiny or legal consequences, stop communicating their legitimate sustainability efforts altogether.
How Tourism Businesses Can Prepare
The good news is that many tourism operators already do good work and simply need to ensure their communications reflect reality.
Here are some key steps to take:
1. Audit Your Claims
Review your website, marketing materials, social media, and product labels. Identify any environmental statements and ask:
- Can we substantiate this?
- Is it clear and specific?
- Would a customer reasonably interpret it as accurate?
2. Strengthen Your Evidence
When you do make claims, ensure you have robust documentation. This might include:
- Independent labels and certifications, like GreenStep’s Sustainable Tourism Pathway or Certification, B Corp, LEED, and others
- Third-party carbon footprint measurement or verification based on global standards (such as GHG Protocol or ISO)
- Energy, waste, and water performance data from utilities
- Supply chain verification
- Third-party life cycle assessments based on global standards (such as ISO)
3. Adopt a Credible Framework
Consider developing an environmental claims policy and process using one like GreenStep’s Sustainability Performance Framework to guide your actions.
4. When in Doubt, Be Transparent
If you’re on a sustainability journey, share your progress honestly rather than making grand claims. Consumers increasingly value transparency over perfection. Talk about your sustainability wins and your gaps, supported by your plans to improve.
5. Train Your Team
Ensure that marketing, sales, and front-line staff understand the new rules and are equipped to communicate sustainability actions and benefits accurately, including through the website, social media, and on-site.
Final Thoughts
Canada’s crackdown on greenwashing aligns with a growing global trend, with similar policies taking shape in the EU, UK, and US.
As an experience-driven sector, tourism is particularly exposed — but also uniquely positioned to lead by example.
By embracing transparency and aligning tourism marketing with verified sustainability practices, operators can build trust, reduce legal risk, and offer the authentic experiences today’s travellers are seeking.
Doing the right thing — and talking about it truthfully — is not just compliance; it’s a competitive advantage. Today’s travellers can spot the difference between a promise and proof, and are quick to take to social media with their feedback.
When we choose action over hype, everyone wins — our guests, our business, and the planet.
Support for Navigating Bill C-59
Ready to align your tourism business with Bill C-59 and avoid greenwashing risks? Discover how GreenStep’s sustainability tools and certifications can help.
Book a free consult with the GreenStep team.
*This article shares tips based on GreenStep’s experience supporting businesses in communicating their sustainability efforts. It does not constitute legal advice and should not be relied upon as such.
