application

Dan Grigorescu vs. 9199-4467 Québec Inc. (Earth Rated) - application

Litigation

Sabin

Sabin Litigation

petition

Dan Grigorescu vs. 9199-4467 Québec Inc. (Earth Rated) - petition

Filing Year For Action

In December 2024, a proposed consumer class action was filed before the Superior Court of Quebec against 9199-4467 Québec Inc., doing business as Earth Rated, alleging false and misleading environmental representations in violation of the Competition Act, R.S.C. 1985, c. C-34, and related consumer protection legislation  ￼. The plaintiff, acting on behalf of purchasers across Canada or, alternatively, a Quebec subclass, claims that Earth Rated’s “Certified Compostable Poop Bags” were marketed, labelled, and sold as compostable in circumstances where, in practice, the bags and their intended contents (pet waste) cannot be composted in most municipal composting systems in Canada. According to the application, composting facilities in Quebec and many other provinces either do not accept compostable plastics at all, do not accept pet waste, or mechanically remove and landfill plastic bags during processing, rendering compostability claims ineffective or misleading in real-world disposal conditions.

The plaintiff alleges that Earth Rated leveraged consumer concern about environmental impacts to charge a price premium for these products, notwithstanding the limited availability of composting infrastructure capable of processing them as advertised. The application relies on federal guidance on environmental claims, international standards on environmental labelling, and amendments to section 74.01 of the Competition Act that specifically address representations about environmental benefits and climate change mitigation, including requirements that such claims be supported by adequate and proper testing or substantiation. The relief sought includes authorization of a class action, compensatory and punitive damages, declaratory relief, and an injunction prohibiting continued representation of the products as compostable.

In April 2025, Earth Rated filed an application seeking authorization to adduce additional evidence at the authorization stage under the Quebec Code of Civil Procedure  ￼. The defendant argues that the proposed sworn statement and supporting exhibits correct or clarify what it characterizes as incomplete or inaccurate allegations in the authorization application. In particular, Earth Rated asserts that certain composting facilities in Quebec and elsewhere in Canada do accept certified compostable bags, with or without pet waste, and that the full product packaging contains qualifying language indicating that compostability depends on the availability and acceptance policies of local municipal programs. The defendant submits that this evidence is relevant to assessing whether the plaintiff has established an arguable case, including whether the impugned representations would mislead a reasonable consumer when read in context.

The case forms part of a broader trend in Canada since 2024 toward increased private enforcement and litigation concerning environmental and climate-related marketing claims. Amendments to the Competition Act expanding private access and explicitly addressing claims related to environmental protection and climate change mitigation have coincided with heightened scrutiny of corporate representations concerning compostability, recyclability, offsets, and emissions reductions. While framed as consumer and competition litigation, the proceedings are climate-relevant insofar as they test the legal standards governing claims about environmentally beneficial products and the evidentiary threshold for substantiating such claims in light of existing waste management and emissions-reduction realities.