EnergyAustralia was forced to apologize to over 400,000 customers for suggesting that its “𝗚𝗼 𝗡𝗲𝘂𝘁𝗿𝗮𝗹” program made their energy consumption 𝗰𝗮𝗿𝗯𝗼𝗻 𝗻𝗲𝘂𝘁𝗿𝗮𝗹.
The result: loss of trust, a class-action lawsuit, and an expensive settlement.
This case is a stark reminder that the risks of greenwashing are real, here and elsewhere. Even with good intentions, a poorly worded environmental claim can quickly become a legal, reputational, and financial liability.
Canada recently strengthened its greenwashing laws with the passing of Bill C-59, which amends the Competition Act. Since June 2024, companies are required to back all environmental claims with verifiable evidence and internationally recognized methodologies.
Businesses must now demonstrate the actual environmental effectiveness of their products and services through scientific studies, recognized standards, or credible certifications.
As of June 2025, private parties—including environmental groups, individuals, and competing businesses—will be allowed to file complaints with the Competition Tribunal regarding statements they believe to be misleading.
How is your company managing this emerging risk?
At Transfert, we support organizations that wish to communicate—or are already communicating—their environmental actions and commitments, by helping them prevent the risks of greenwashing.
We can help you assess your communications to ensure they align with the new regulatory framework. Contact us to learn more.
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Click here to read more on how we can help you.
Click here to read The Guardian’s report on the EnergyAustralia story.