On April 26, 2016, Canada's Competition Bureau filed an application with the Competition Tribunal
alleging that Moose International Inc., carrying on business as Moose
Knuckles, engaged in deceptive marketing practices and that the
"Made in Canada" claims associated with certain of its
parkas and other apparel are false and misleading.
Under the Competition Bureau's Enforcement Guidelines for "Product of
Canada" and "Made in Canada Claims", the use of a
"Made in Canada" claim requires three conditions to be
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
the "Made in Canada"
representation is accompanied by an appropriate qualifying
statement, such as "Made in Canada with imported parts"
or "Made in Canada with domestic and imported parts".
This could also include more specific information such as
"Made in Canada with 60% Canadian content and 40% imported
The Guidelines are not a legal document but rather represent the
Competition Bureau's view of how the Competition Act should be
interpreted. It is up to the Competition Tribunal to determine
whether the claims violate the Competition Act.
The Competition Bureau alleges that Moose Knuckles failed to
meet all three conditions and seeks an order requiring, among other
things, Moose Knuckles to pay an administrative penalty of $4
million and a form of reasonable restitution to customers. The
Competition Bureau's media release can be found here.
Moose Knuckles stated in its responding press release that it "vigorously
rejects" the allegations made by the Competition Bureau.
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In less than nine months, on July 1, 2017, persons affected by a contravention of Canada's anti-spam legislation will be able to invoke a private right of action to sue for compensation and potentially substantial statutory damages.
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