Claims You Can and Cannot Make

The two rules underneath everything

The general impression test. A representation is assessed on the overall impression it conveys as well as its literal meaning. A claim that is technically true and creates a misleading impression is still a problem.

That is the rule most small businesses do not know, and it removes the defence people instinctively reach for, which is that the words were accurate.

Vagueness is not protection. Making a claim imprecise so it cannot be disproved does not help, because the impression it creates is what is assessed.

Performance claims

Where the corpus of small business marketing gets into trouble most often.

A representation about the performance, efficacy, or length of life of a product must be based on adequate and proper testing, and that testing must have been done before the claim is made.

Two consequences that surprise people. Testing after the fact does not cure the claim, and the burden of showing the testing existed sits with the business making it.

Which means a statement about how long something lasts, how well it works, or what results it produces needs support that predates it.

Practically, for a small business: describing what you do is safe, and asserting what it achieves is where substantiation is needed. Our process includes three coats is a description. Lasts twice as long is a performance claim.

Environmental claims, which changed in 2024

Worth understanding because the rules are new and the exposure is real.

Amendments that came into force in June 2024 added explicit requirements for environmental representations.

Claims about a product's environmental benefits must be based on adequate and proper testing. Claims about the environmental benefits of a business or a business activity must be based on adequate and proper substantiation in accordance with internationally recognised methodology.

Two features matter. The burden is on the business to establish the substantiation, and for the business-level provision it is not a defence that the claim is true. You have to be able to show the substantiation exists.

The phrase internationally recognised methodology is not defined in the legislation, which has produced genuine uncertainty and led some organisations to remove environmental content rather than defend it.

For a small business the practical reading is straightforward. Specific factual statements are safe: this mailer is paper and recyclable, we replaced our vehicles in 2023. Broad claims are where the risk sits: eco-friendly, green, sustainable, carbon neutral, environmentally responsible.

Private parties are also gaining the ability to bring proceedings on these provisions, based on claims made from June 2024 onward, which broadens who might challenge a claim beyond the regulator.

Testimonials and reviews

A testimonial used in advertising must have been previously approved by the person giving it, and it should reflect a genuine experience.

Beyond that, material connections have to be disclosed. Where somebody has been paid, given free product, or has any connection that would affect how their endorsement is weighed, that has to be apparent to the reader.

This covers more than paid influencers. Reviews from staff, family, or anyone with an undisclosed interest fall within the same principle, and so does an incentivised review.

Pricing claims

Two areas where small businesses trip regularly.

Was and now pricing. A comparison to a former price requires that the former price was genuine, meaning the item was offered at that price for a substantial period or a substantial volume was sold at it. A permanently discounted price with a fictional original is a misleading representation.

Unattainable prices. Advertising a price that cannot actually be paid because obligatory fixed fees are added later is specifically addressed. If mandatory charges are not optional, the advertised price should include them or the practice is exposed.

That second point catches businesses quoting a headline figure with a mandatory service charge, booking fee, or disposal fee applied at the end.

Comparisons with competitors

Permitted and requiring care.

A comparative claim must be accurate, current, and supportable, and comparing against a competitor's superseded price or product is a misleading representation even if it was true once.

Claims about being the best, cheapest, or largest are performance or superiority claims requiring support, and they are difficult to substantiate.

What is safe

The practical list, since most of this is avoidable.

• Describing what you do, in specifics.
• Stating facts about your business, such as years operating or certifications held.
• Quoting a manufacturer's own specification, attributed.
• Publishing genuine reviews with connections disclosed.
• Prices that include everything mandatory.
• Explaining process rather than promising outcome.

The habit worth adopting

Before publishing any claim, ask what you would produce if somebody asked you to prove it.

If the answer is a document, a test, a manufacturer specification, or a record, the claim is supportable. If the answer is that it feels true, it is a claim to rewrite as a description.

This is general information rather than legal advice, the rules change and are being interpreted, and the Competition Bureau or a lawyer is the right source for a specific question. The environmental claims point applies directly to how packaging is described, as covered in the package as a marketing surface.

Frequently asked questions

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