Made in Canada claims are a powerful marketing tool if you are trying to attract customers who like to buy local and encourage ethical manufacturing. However, did you know they were rules surrounding Made in Canada claims (set out by the Competition Bureau)? Here are a few things you must know before stamping “Made in Canada” or any other claims onto all your products.
Of course, please take this as legal information and not legal advice. If you have any questions regarding Made in Canada claims, send us an email at info@artylaw.ca.
“Made in Canada” and “Product of Canada” are two different claims
While they are very similar, “Made in Canada” and “Product of Canada” are two completely different claims that require different elements in order to be deemed valid and not misleading to customers.
In order to claim a product is “Made in Canada,” three conditions must be met:
- The last substantial transformation of the good you are making must have occurred in Canada;
- At least 51% of the total direct costs of producing or manufacturing of that same good must have occurred in Canada;
- The “Made in Canada” representation must be accompanied by an appropriate qualifying statement (for instance, Made in Canada with domestic and imported parts).
As for the “Product of Canada” claims, two conditions must be met:
- The last substantial transformation of the good, just like for “Made in Canada” claims, must have occurred in Canada;
- At least 98% of the total direct costs of producing or manufacturing the good must have occurred in Canada.
Visuals matter
If you plan on using strong visuals such as the Canadian flag of a maple leaf, make sure the accompanying text is not only visible enough for your customers to notice it, but also clear enough for them to understand what it means. Try to think about the conclusion a customer of yours might come to after looking at those visuals (this includes the pictorial representations, accompanying text, positioning, etc). If the conclusion doesn’t represent the truth, change your visuals.
Precision is important (and encouraged)!
If your product does not meet the criteria for “Made in Canada” and “Product of Canada” claims, the Competition Bureau encourages you to use more specific terms that will accurately reflect the steps that took place in Canada. Some popular examples of that are “Designed in Canada” or “Assembled in Canada with foreign parts.”
Refrain from using terms such as “produced” or “manufactured” in Canada, as the Competition Bureau deems these claims to be similar to “Made in Canada” claims, which means the requirements mentioned above will have to be met.
The most important thing when making these types of claims is accuracy and comprehension from a customer point of view. If these two elements are met, your claims should be in compliance with the Competition Bureau’s guidelines.
If you have any questions regarding “Made in Canada” claims or similar claims, do not hesitate to send us an email at info@artylaw.ca or click the link below to schedule a consultation.
