Moose Knuckles accused of misleading made in Canada claims

May 2, 2016 – The Competition Bureau has taken action against what it considers to be deceptive marketing practices by Moose Knuckles, a manufacturer of winter jackets. The jackets are sold in a variety of high‑end stores across Canada and typically retail for $595 to $1,000+.

The Bureau has filed an application with the Competition Tribunal alleging 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 per cent 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 per cent Canadian content and 40 per cent 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,” said Matthew Boswell, senior deputy commissioner of competition.

Moose Knuckles was not immediately available for comment.

— With files from The Canadian Press