Competition Bureau takes action against Moose Knuckles for alleged false or misleading 'Made in Canada' claims
April 27, 2016
The Competition Bureau has taken action against what it considers to be deceptive marketing practices by Moose Knuckles, a manufacturer of premium winter jackets. The 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 the 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 done in Canada. The Bureau is seeking an end to what it believes to be false or misleading 'Made in Canada' representations, 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:
The last substantial transformation of the good occurred in Canada; and
At least 51% of the total direct costs of producing or manufacturing the good have been incurred in Canada; and
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. The Bureau has taken action in order to ensure that consumers – and retailers – have the correct information to allow them to make informed purchases."
Senior Deputy Commissioner of Competition