Consumers are often looking to support homegrown businesses by purchasing Canadian products but they don’t always know the difference between the labels “Made in Canada” and “Product of Canada.”
The Competition Bureau requires that at least 98 per cent of a good’s total direct costs of production or manufacturing are incurred in Canada before that good can be legally advertised as a “Product of Canada.”
The term "Made in Canada” has a lower bar. Goods can be labelled “Made in Canada” if 51 per cent of the total direct costs of production or manufacturing occurred in Canada.
When appropriate, it should also have a qualifying statement like “Made in Canada with imported parts.”
For both labels, “the last substantial transformation of the good” must occur in Canada, according to the federal regulator’s online guide.
Josephine Palumbo, who works for the Competition Bureau, says that “Canadian consumers not only expect but deserve truth in advertising."
“Canadians care about Canadian content and so when businesses engage in this kind of advertising and labelling, they must abide by our laws,” she added.
Corporations that break the law can face fines up to $10 million dollars. Individuals found guilty can be fined up to $750,000.
Cassidy Clement, a Winnipeg resident who likes to support local Manitoba businesses, says she’s happy there are rules in place.
"Labelling is everything,” she said. “I want to know what's going into my products, where they come from. I just want the truth."
With a report from CTV Winnipeg
