Since the start of the year, Canadian consumers and businesses have rallied behind the "Elbows Up!" movement and are looking to "buy Canadian". Homegrown goods are in high demand, and origin claims like "Made in Canada" and "Product of Canada" are getting more attention than ever. These claims, however, are not just feel-good slogans. They are legal statements and their misuse can lead to penalties, regulatory action, and a loss of consumer trust.
What Changed (and What Didn't)
On March 7, 2025, the Competition Bureau released updated enforcement guidelines for "Product of Canada" and "Made in Canada" claims. The updates did not change the legal requirements but clarified them to make the rules easier to understand and to apply.
Requirements for Product Labels and Marketing Claims
To label a product as "Product of Canada" or "Made in Canada", the following criteria must be met:
Product of Canada
- At least 98% of the total direct costs must be incurred in Canada
- The last substantial transformation must happen in Canada
Made in Canada
- At least 51% of the total direct costs must be Canadian
- The last substantial transformation must happen in Canada
- A qualifying statement is required (for example, "Made in Canada with imported parts")
Why it Matters
Consumers are paying attention, and so is the Competition Bureau. Misleading origin claims can lead to administrative monetary penalties (AMPs), court orders, and even mandatory corrective advertising. Origin claims are a valuable tool to create and to foster brand trust and consumer loyalty. But they also come with responsibility.
The Use of the Maple Leaf
Keep in mind, as well, that the Canadian Flag and the stylized 11-point maple leaf are protected under the Trademarks Act and that unauthorized use may lead to enforcement action. To use those symbols for a commercial purpose, permission from the Department of Canadian Heritage is required. And if the symbols are to be used in association with products that are sold outside Canada, the authorization of Global Affairs Canada is also required.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
