As “Made in Canada” claims make a comeback, be mindful of labelling laws

Scroll through any social media these days and the groundswell of support to “Buy Canadian” is everywhere — especially when it comes to grocery items. “Buy French’s Ketchup and give Heinz the boot,” says one social media post. “Choose Old Dutch potato chips and give Lay’s a pass,” says another.

In response to the tariff threats from the U.S., Canadian consumers are demanding transparency from suppliers and retailers about the Canadian-ness of the products on store shelves. “Made in Canada” claims have legal meaning and ignoring those rules could lead to civil or administrative penalties.

The Rules

Businesses are not required to make “Made in Canada” claims, but when they do, there are guidelines they should follow to avoid running afoul of the competition laws. When manufacturers or retailers use the phrase “Product of Canada”, they should ensure that the content is almost exclusively Canadian. The guidelines recommend meeting a 98% Canadian content threshold. There is more flexibility around the term “Made in Canada”, which generally means more than half of the content is Canadian. For both types of claims, the expectation is that the last substantial transformation of the product occurred in Canada.

There are other ways that business can advertise Canadian inputs including “Prepared in Canada with Canadian ingredients” or “Assembled in Canada with foreign parts.” These are specific ways in which businesses can tell consumers which part of the manufacturing process occurred in Canada.

Symbols

Businesses may be tempted to use symbols to indicate that products were made in Canada such as maple leaves or red stickers. Be mindful that if these symbols give the general impression that the product was made in Canada, the same rules can apply.

New Cause of Action

While historically enforcement of Canada’s advertising and labelling laws was the purview of the Competition Bureau, starting in June 2025, private litigants will be able to bring cases before the Competition Tribunal if they can show that the case is in the public interest. Companies that believe their competitors are misleading the public about the Canadian-ness of their products will be able to ask the Tribunal to prohibit the advertising and order fines.

MLT Aikins is pleased to offer insights and legal advice on competition law and foreign investment practices — especially when it comes to product labelling. For more information about how these rules apply to your business, please contact Joshua Krane or any member of our Competition Law group.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.

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