Promoting ‘Made in Canada’ products? Consider the Competition Act
Canada's front pages are filled with headlines about tariffs, trade wars, and a renewed sense of Canadian patriotism. Related articles urge consumers to 'Buy Canadian!'
Businesses may do well to jump on the opportunity to promote products as Canadian-made, but they must follow specific legal requirements before doing so. In particular, businesses must consider the Competition Act (the Act), which governs against deceptive marketing practices, including misleading representations about the national origin of a product.
What makes a product Canadian?
The Act is key among an array of Canadian laws that protect consumers from false or misleading advertising. The Competition Bureau (the federal agency charged with enforcing the Act) issues guidance, which, while not legally binding, provides insights about the Bureau’s approach to enforcing these laws, including its view of when advertisers may legally claim their (non-food) goods are “Made in Canada” or “a Product of Canada”.
According to the Bureau, a product's last substantial transformation must occur in Canada for the product to be Canadian. The Bureau differentiates between Product of Canada and Made in Canada based on the proportion of direct total costs incurred in Canada. The criteria for each designation are as follows:
| Product of Canada | Made in Canada |
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Advertisers wishing to promote Canadian products that fall outside the requirements can do so, but they must use labelling that clearly and accurately tells consumers which part of the production or manufacturing process occurred in Canada. The Bureau suggests “Assembled in Canada with foreign parts” or “Sewn in Canada with imported fabric”, for example.
When considering whether an advertisement complies with the Act, the Bureau focusses on the general impression conveyed by the advertisement as a whole as well as its literal meaning. Therefore, businesses should avoid implicit references to a product’s origin in Canada—such as through the use maple leaf symbols—if the advertised product lacks the Bureau’s prerequisites for a Made in Canada claim.
Compliance tips for businesses
Verify existing and future claims: Carefully review Made in Canada or Product of Canada claims to ensure compliance with the Act and follow the Bureau’s guidance before making any claims about a non-food product’s origin in Canada.
Avoid penalties: False or misleading claims about a product’s Canadianness can lead to Bureau investigation and enforcement actions, including prohibition orders and hefty administrative monetary penalties (AMPs). AMPs can reach up to $10 million or three times the benefit derived, or 3 percent of global revenues if the benefit derived is not reasonably determinable.
Know the laws or seek legal advice: The Competition Act is fundamental, but other laws may also apply depending on a given product and the claim being made. For example, Provincial consumer protection laws also prohibit deceptive or unfair acts and practices; the Trademarks Act and Copyright Act protect official Canadian symbols (such as the flag); and the Canadian Food Inspection Agency sets additional criteria for food and beverage products labeled Made in Canada or Product of Canada.
New era of enforcement
Enforcement against deceptive marketing practices is on the rise in Canada, and we expect this trend to continue in 2025 and beyond. Recent amendments to the Act have prompted the Commissioner of Competition to declare a new era of antitrust enforcement, emphasizing that tackling deceptive marketing practices is a top priority for the Bureau.
Advertisers should therefore expect increased scrutiny of all advertising practices, not just product origin claims. To this end, Businesses should implement and maintain robust marketing and pricing practices compliance programs, or improve existing ones.
If you have questions about advertising or marketing laws, implementing a compliance program, or general compliance with the Competition Act, please contact the authors.
