Canadian Consumer Perceptions of Sustainable Fashion & Greenwashing

More and more citizens want sustainable fashion — but how can they tell what’s genuine and what’s just greenwashing?

“At Fashion Takes Action, we’ve spent the past 18 years advancing sustainability through education, collaboration, and research. But despite growing awareness, the industry’s environmental impact remains staggering – and change isn’t happening fast enough. With consumers more eager than ever to shop sustainably, we launched this report to explore a critical and underexamined question: can Canadians actually identify greenwashing in fashion? Our findings shed light on the gap between perception and reality, and offer actionable insights to support policy change, empower consumers, and hold brands accountable.”

– Kelly Drennan, Founder, Fashion Takes Action

About the Report

Consumers are increasingly seeking sustainable fashion – but how do they know what’s real and what’s greenwashing?

This national study explores Canadian consumer perceptions of sustainability and greenwashing in the fashion industry. Based on survey data, expert interviews, and a thorough literature review, the report offers a deep dive into:

  • Awareness and understanding of greenwashing

  • Trust in sustainability claims and who consumers believe

  • Behavioural responses to greenwashing

  • Reputational risks for brands

  • Current and emerging legislation in Canada and abroad

Want to go deeper? Join our free webinar on May 8, 2025 to explore key findings from this report and hear expert insights on what Canada needs to combat greenwashing in fashion. Register now >

Key Findings

  • 64% of respondents would stop buying – or buy less – from a brand caught greenwashing

  • 79% expressed frustration with greenwashing after learning about it

  • 65% were unaware that greenwashing is illegal under the Canadian Competition Act

  • 52% of consumers trust environmental NGOs to identify greenwashing, while only 9% trust influencers

  • Most participants want brands to be honest, clear, and specific about their sustainability practices

Reputation risks caused by greenwashing should not be underestimated.

Why It Matters

While many Canadians care about sustainability, our findings show there’s a major disconnect between what they want and what the fashion industry provides. Greenwashing creates confusion and undermines consumer trust – and that trust is increasingly difficult to earn back.

The study also explores how upcoming legislation, including Bill C-59, will empower consumers, increase accountability, and impose real penalties on deceptive green claims.

Report Highlights

  • Consumer Awareness & Behaviour

    How Canadians define sustainable fashion, respond to greenwashing, and verify sustainability claims.

  • Who Consumers Trust

    ENGOs are the most trusted source for calling out greenwashing – celebrities and influencers, the least.

  • Reputational Risk for Brands

    Greenwashing doesn't just break trust – it impacts sales, brand loyalty, and public perception.

  • Policy & Legal Frameworks

    A breakdown of Canada’s Competition Act, Bill C-59, and how we compare to EU and global regulations.

  • Expert Recommendations

    Insights from lawyers, brand leaders, and sustainability experts on avoiding greenwashing and building trust.

Recommendations for Policymakers

To protect consumers and support responsible business, we’ve outlined actionable policy recommendations for Canada’s Competition Bureau and government agencies. These include:

  • Mandatory substantiation for all environmental claims

  • Clear labelling and terminology guidelines

  • Public education on the Competition Act

  • A task force of fashion experts to inform future regulations