2024 and 2025 have marked a turning point in the fight against greenwashing in Canada. The Competition Bureau of Canada has finalized new guidelines under the Competition Act, targeting misleading environmental claims. These updates require that any green claims—such as “carbon neutral,” “eco-friendly,” or “sustainable”—must be truthful, not misleading, and backed by proper testing or substantiation using internationally recognized methodologies [1].
For fashion brands, this means the stakes are higher than ever. Non-compliance can lead to penalties of up to $10 million for a first offence, or even more depending on the benefit derived from the misleading conduct [1].
So how can your brand stay compliant and make a real impact? The answer lies in measurable, transparent action—like supporting circularity through donations.
Why Canada is cracking down on greenwashing
The fashion industry is one of the most resource-intensive sectors globally. It’s the second-largest consumer of water and contributes to 10% of global greenhouse gas emissions—more than aviation and shipping combined.
In Canada, consumers are increasingly eco-conscious. A growing number are demanding transparency and accountability from the brands they support. But when companies exaggerate or fabricate their environmental efforts, they risk not only public backlash but also legal consequences under the Competition Act.
The Bureau’s new guidelines emphasize that vague or exaggerated claims—like “green,” “natural,” or “ethically made”—are no longer acceptable unless they are clearly defined and substantiated [2].
Turning surplus stock into social and environmental impact
At Soles4Souls Canada, we help fashion brands extend the life of their products while supporting communities in need. We accept donations of new or gently used shoes and clothing, which are then distributed to help people build small businesses in low-income countries.
We also provide new shoes and apparel to people during crisis, and in Canada, we support children in under resourced communities by giving them new athletic shoes—removing barriers to education and extracurricular activities.
This model of circularity keeps products in use longer, diverts them from landfills, and reduces the need for new, carbon-intensive manufacturing. It also gives brands tangible, reportable evidence of their sustainability efforts—helping them comply with Canada’s greenwashing laws.
Donations that deliver measurable ESG value
Your partnership with Soles4Souls Canada can be a cornerstone of your ESG reporting. For example, donating a pair of shoes extends its life by at least 15 months, significantly reducing its carbon footprint.
By working with Soles4Souls Canada, your brand can demonstrate real, quantifiable environmental progress—and communicate it confidently to regulators and customers alike.
Ready to protect your brand from greenwashing?
Join the brands leading the charge toward . A partnership with Soles4Souls Canada helps your brand stay compliant with Canada’s greenwashing laws, reduce costs, and prove your environmental leadership.
To learn more, contact lisao@soles4souls.org.
References
[1] Competition Bureau issues final guidelines regarding … – canada.ca