Clean Beauty Claims Run Risk of Deceptive Advertising

As consumers search for ‘clean beauty’ and sustainable personal care products, there is an increase of greenwashing claims and deceptive advertising. Exposure to risk of claims in the cosmetic and personal care industry arises from federal and provincial laws that govern advertising and consumer-facing representations.

Claims such as “clean,” “natural,” or other environmental claims may increase scrutiny from regulators. Cosmetic businesses should consider what their marketing conveys as well as the accuracy of statements made in relation to the claim. Product safety claims can become an issue when harmful ingredients are involved, and certain environmental representations likely require substantiation under the Competition Act. For these reasons, manufacturers should regularly audit their marketing materials and maintain evidence that supports any consumer-facing claims about their products.

The Competition Act prohibits false or misleading representations made to promote a product. Amendments to Bill C-59 in June 2024 determined the environmental benefits of a product must be based on proper testing, while claims around environmental benefits of a business or their activity must be properly sustained. Similarly, the Cosmetic Regulations require manufacturers to have evidence supporting claims made on cosmetic labels and in advertising.

A representation is considered deceptive under the statute if it has the ability, or effect of deceiving or misleading a consumer.

If you have a cosmetics line and are worried about some of the product claims that you include in your advertising, Froese Law is happy to help you navigate your legal needs.