‘Product of Canada’? CFIA reviewing rising complaints of mislabeling

Rising Concerns Over Mislabelled "Product of Canada" Claims

In recent months, the Canadian Food Inspection Agency (CFIA) has reported a noticeable increase in complaints regarding food products that are either mislabelled as "Product of Canada" or lack proper country-of-origin information. This surge in complaints coincides with a heightened sense of nationalism among Canadian consumers, who have been actively supporting local businesses amidst threats of U.S. tariffs. The CFIA is currently reviewing these complaints but has not yet determined whether any non-compliance with labelling standards has occurred. However, the rise in scrutiny is not surprising, as the current political climate has made the "Canadian-ness" of products a significant selling point.

The Emotional and Practical Challenges of "Product of Canada" Labels

For consumers, the "Product of Canada" label has become a symbol of pride and trust. However, achieving this designation is no small feat for businesses. The CFIA enforces strict criteria, requiring that all—or nearly all—of the food, processing, and labour involved in producing an item must be Canadian. Legal experts, such as Julia Kappler of Gowling WLG, note that this can be challenging for companies, especially when products may contain ingredients or components from other countries. As a result, many businesses find themselves in a gray area, where some aspects of their products are Canadian, but others are not. This has led to increased scrutiny from consumers who are now more vigilant about verifying the accuracy of origin claims.

Differences in Labelling Standards for Food and Non-Food Items

While the "Product of Canada" label has been a focal point for complaints, other terms such as "Made in Canada" and "100% Canadian" have not generated the same level of concern. For non-food items, the rules are slightly different. The Competition Bureau, which oversees non-food products, allows companies to use the "Made in Canada" label if at least 51% of the production or manufacturing costs are incurred domestically. Similarly, a "100% Canadian" claim requires that all ingredients, processing, and labour are Canadian. Despite these guidelines, the Competition Bureau has not reported a significant increase in complaints related to these labels, suggesting that consumers may be more concerned with food products due to their direct impact on health and safety.

The Role of Regulatory Bodies in Addressing Complaints

The CFIA and the Competition Bureau play crucial roles in enforcing labelling standards and addressing consumer complaints. If the CFIA finds that a company has violated labelling regulations, it can take enforcement action, including forcing the company to stop selling the product, issuing a recall, or imposing monetary penalties. Legal experts, such as Dara Jospé of Fasken Martineau DuMoulin LLP, suggest that the CFIA may even require immediate action in cases where misleading labels are found to be emotionally significant to consumers. For non-food items, the Competition Act allows for hefty penalties, including fines of up to $10 million or three times the value of the benefit derived from the misconduct.

The Weight of Canadian Claims on Consumer Trust

The current emphasis on Canadian-made products has made labelling claims a critical factor in consumer trust. As consumers become more aware of the importance of supporting local businesses, they are also more likely to feel betrayed if they discover that a product’s origin has been misrepresented. Legal experts like Kappler and Jospé agree that businesses must be proactive in ensuring compliance with labelling standards to avoid reputational damage and legal repercussions. The old adage "an ounce of prevention is worth a pound of cure" has never been more relevant, as companies are encouraged to verify the accuracy of their claims before bringing products to market.

Conclusion: Navigating the Complexities of Labelling Claims

The recent surge in complaints over "Product of Canada" labels highlights the complexities and challenges associated with labelling standards in Canada. While consumers are driving the demand for transparency and accuracy, businesses are faced with the daunting task of navigating strict regulations and emotionally charged expectations. Regulatory bodies like the CFIA and the Competition Bureau are tasked with enforcing these standards and addressing complaints, but the ultimate responsibility lies with companies to ensure that their labelling claims are truthful and compliant. As the market continues to evolve, it is clear that the "Product of Canada" label will remain a critical factor in consumer trust and loyalty.