Moose Knuckles accused of misleading 'Made in Canada' claims

The Competition Bureau is accusing premium winter jacket manufacturer Moose Knuckles of misleading customers over the company's 'Made in Canada' claims. (www.mooseknucklescanada.com)

The Competition Bureau is accusing premium winter jacket manufacturer Moose Knuckles of misleading customers over the company's "Made in Canada" claims.

The independent law enforcement agency said the sportswear brand is undertaking "deceptive marketing practices” by claiming the parkas are made in Canada, when they're primarily manufactured in Vietnam and elsewhere in Asia.

The Competition Bureau is seeking a $4-million penalty against Moose Knuckles, along with restitution for consumers.

Moose Knuckles' duck down-filled parkas range in price from approximately $600 to more than $1,000. On its website, the company says: "We create time honoured Canadian garments tailored for the contemporary living. We build Canadian know-how, grit and heritage into every fibre, stitch and zipper."

The bureau announced on Wednesday that it has filed an application with the Competition Tribunal alleging that only the finishing touches to the jackets, such as adding the trim, zippers and snaps, are completed in Canada.

"Consumers are willing to pay a premium for ‘Made in Canada’ products, and manufacturers know this," Matthew Boswell, senior deputy commissioner of competition, said in a statement. "The Bureau has taken action in order to ensure that consumers — and retailers — have the correct information to allow them to make informed purchases."

Moose Knuckles president Ayal Twik said in a statement to The Canadian Press that the company "vigorously rejects the allegations" regarding the Canadian content of its products and the company's operations in Canada.

"Moose Knuckle's core products are made in Canada and always have been," Twik said.

The guidelines for “Made in Canada” and “Product of Canada” claims state that at least 51 per cent of the total direct costs of producing or manufacturing the good should be incurred in Canada.

The bureau also states that the "last substantial transformation" of the good should occur in Canada and the "Made in Canada" label could be accompanied by a qualifying statement, such as "Made in Canada with imported parts" or "Made in Canada with domestic and imported parts".

With files from The Canadian Press