Moose Knuckles’ claim that its fur-trimmed parkas are “Made in Canada” is deceptive, the Competition Bureau claims in an application filed in the Competition Tribunal. The parkas, which retail for $595 to $1,000, are touted by Moose Knuckles as being “Made in Canada”, when in fact they are mostly made in Vietnam. The application alleges that only finishing touches to the parkas, such as adding the trim, zippers, and snaps, are applied in Canada.
The application is based on Moose Knuckles; failure to meet the criteria for labelling a product as “Made in Canada” that the Bureau cites in its “Product of Canada” and “Made in Canada” Enforcement Guidelines:
- The last substantial transformation of the good occurred in Canada;
- 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”.
Initially, Moose Knuckles parkas were made in Winnipeg, but starting in 2012, Moose Knuckles moved production to Vietnam. Less than 51% of the costs of making Moose Knuckles parkas is incurred in Canada; and the attachment of trim, zippers, and snaps in Canada is not a “substantial transformation”, the Bureau asserts. The Bureau seeks an administrative monetary penalty of $4 million, as well as restitution for purchasers of the jackets.