On February 4, 2024, Ad Standards Canada (“Ad Standards”) issued the Advisory on the Meaning of “Made in Canada” and Similar Claims under the Canadian Code of Advertising Standards – Ad Standards (the “Advisory”), reminding advertisers of the importance of accurate origin claims, so that consumers can make informed purchasing decisions amidst the shifting trade landscape.
The Advisory was developed to provide guidance to industry on advertising products or services as “Made in Canada”, “Proudly Canadian” or with a call to action to “Buy Canadian”. As is the case with all product claims in Canada, the Advisory reminds stakeholders that they may not be false, misleading or deceptive. A claim is assessed based on the consumer’s general impression, rather than the advertiser’s intent, taking into consideration express or implied claims, but also imagery.
With trade tensions looming between the United States and Canada, Canadian consumers may be looking to purchase locally produced products. Businesses looking to make origin claims regarding their food products should consider the Canadian Food Inspection Agency’s (the “CFIA”) guidance for Origin claims on food labels - inspection.canada.ca (the “CFIA Guidance”). For non-food products, the Advisory directs business to the Competition Bureau’s 2009 Enforcement Guideline for guidance on the accuracy of origin claims on products generally.
According to the CFIA Guidance, in order for a food product to be labelled as “Made in Canada,” it must meet the following key requirements:
- The last substantial transformation of the product occurred in Canada: A substantial transformation occurs when a food product undergoes processing which changes its nature and becomes a new product bearing a new name commonly understood by the consumer.
- The label must include a qualifying statement, where applicable: For example, where last substantial transformation of a food occurred in Canada, but it nonetheless contains imported ingredients, the qualifier “Made in Canada from domestic and imported ingredients” is necessary.
A “Product of Canada” claim has more stringent criteria: A food product may use the claim “Product of Canada” when all or virtually all (i.e., 98%) major ingredients, processing, and labour used to make the food product are Canadian. This higher standard ensures that products labeled as such are predominantly Canadian in origin.
The CFIA Guidance provides that a “Product of Canada” can still be used on a food that contains very low levels (i.e., under 2%) of ingredients that are not generally produced in Canada, such as spices or vitamins. Likewise, the use of imported agricultural inputs such as seed, fertilizers, animal feed, and medications does not disqualify a food from this claim. Lastly, imported packaging does not disqualify a product from this claim, since the CFIA guidelines apply only to the food product itself.
Even more strict is the “100% Canadian” claim. The CFIA provides that in order to make such a claim, the food or ingredient to which the claim applies must be entirely Canadian rather than “all or virtually all” Canadian. In other words, 100% of the ingredients, processing, and labour used to make that product must be Canadian.
Other more specific statements or claims that describe the Canadian value added may be used without further qualification, provided they are truthful and not misleading for consumers. Examples include “Roasted and blended in Canada” to describe coffee since the coffee beans are always imported.
The CFIA also provides commodity-specific information for origin claims, including meat and poultry, fish and seafood, and dairy and eggs.
Recent decisions by the Ad Standards Council offer valuable insights into enforcement of these claims. For instance, a retailer acquired by a U.S. entity used the claim “Truly Canadian”, but the Council found this to be misleading because the company was no longer Canadian-owned and controlled, despite its Canadian origins and workforce. The Advisory further provides that businesses that are not Canadian-owned should not make claims that the company is “Truly/Proudly Canadian”, even if it has locations or leadership within Canada.
If your company is considering making an origin claim on its labeling or advertising, it must consider the Advisory and related guidance from the regulators.
