TC Transcontinental, the company that produces the Pubisac advertising flyers distributed to 700,000 homes in Montreal, said it will be making changes this summer.
The bags that hold the flyers are currently produced from virgin plastic but this summer the firm will begin using bags made of recycled plastic.
The company will also test using smaller bags, and using bags made from paper.
TC Transcontinental president Francois Olivier is taking part Friday in public consultations on the Montreal Metropolitan Community's waste management plan.
He said about 87 percent of the population reads the Publisac flyers, and that the contents have always been fully recyclable.
The city of Montreal has banned retailers from using single-use plastic bags thinner than 50 microns, and is also implementing bans on other single-use plastic items.
Earlier this year a petition called for public consultations on changing the regulations for Publisac and other flyers from being opt-out to opt-in.
Olivier said in March that forcing his company to work on what was effectively a subscription basis would not be viable.
Montrealers who don't want Publisacs can get a no-flyer sticker from their borough. If you have a sticker and you still receive flyers in the mail, you can report it to 311. Companies can be fined between $200 and $500 for the infraction.
The man behind the anti-Publisac petition, Charles Montpetit, said Friday that he was not impressed with TC Transcontinental's plan to use recycled plastic bags and would prefer Publisac use a paper envelope.
Montpetit said his preference was that nobody get Publisacs except if those who specifically request it.