Local Natural Health Products Manufacturer

The Competition Bureau received a complaint in December 2003 alleging that a local natural health product manufacturer was making claims in its advertisements on the internet and on the packaging of its products, which were not in compliance with the Competition Act. The claims in question related to the company being a “Proud Sponsor of the Canadian Breast Cancer Foundation” and that the packaging materials used for its products were “Environmentally Friendly.” The Competition Bureau’s Guidelines for Environmental Claims specify that vague statements such as “environmentally friendly” are meaningless statements that imply some environmental benefit and that vague statements or catch phrases which cannot clearly indicate specific benefits should not be used.

A Bureau examination conducted under the misleading representations and deceptive marketing practices provisions of the Competition Act, subsections 52(1) and 74.01(1), revealed that the claims in question could have raised concerns under the Act as the company’s representations could not be substantiated.

As a result of Bureau contact, the company agreed to remove the reference to its sponsorship role and to clearly indicate the specific benefits of its packaging materials to justify the “environmentally friendly” claim.

The issue was resolved in March 2004.

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