Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Canada Competition Bureau takes action over ‘Made in Canada’ claims, (Apr 28, 2016)

By Linda O’Brien, J.D., LL.M.

The Canada Competition Bureau has taken action against Moose Knuckles, a manufacturer of premium winter jackets, for deceptive marketing practices in claiming that its products are “Made in Canada,” the Bureau has announced. The company’s jackets are sold in a variety of high-end stores across Canada and typically retail for $595 to over $1,000.

The Bureau has filed an application with the Competition Tribunal, alleging that Moose Knuckles parkas are marketed as “Made in Canada” when they are mostly manufactured in Vietnam and elsewhere in Asia. The application alleges that only the finishing touches to the jackets—such as adding the trim, zippers and snaps—are performed in Canada. The Bureau is seeking to stop what it believes to be false or misleading “Made in Canada” representations and is requesting an administrative monetary penalty and restitution for consumers.

The Bureau has guidelines for “Made in Canada” and “Product of Canada” claims. Under the guidelines, a “Made in Canada” claim is unlikely to raise concerns under the false or misleading representations provisions of the Competition Act if: (1) the last substantial transformation of the good occurred in Canada; (2) at least 51% of the total direct costs of producing or manufacturing the good have been incurred in Canada; and (3) the “Made in Canada” representation is accompanied by a qualifying statement, such as "Made in Canada with imported parts" or "Made in Canada with domestic and imported parts." This could also include more specific information such as "Made in Canada with 60% Canadian content and 40% imported content."

"Consumers are willing to pay a premium for ‘Made in Canada’ products, and manufacturers know this,” said Matthew Boswell, Senior Deputy Commissioner of Competition. “The Bureau has taken action in order to ensure that consumers—and retailers—have the correct information to allow them to make informed purchases."

Companies: Moose Knuckles

News: Advertising