Putting the Canadian print on your product.

Both the Consumer Packaging and Labelling Act and the Textile Labelling Act have one main provision regarding the labelling requirements of manufacturers in the country of origin.

The Consumer Packaging and Labelling Act states, “No dealer shall apply to any prepackaged product or sell, import into Canada or advertise any prepackaged product that has applied to it a label containing any false or misleading representation that relates to or may reasonably be regarded as relating to that product.” Regarding the country of origin of the label or container only (excluding the actual product), the Consumer Packaging and Labelling Act states, “Where any reference, direct or indirect, is made on a label to a place of manufacture and the reference is made with respect to the place of manufacture of the label or container and not to the place of manufacture of the product, the reference shall be accompanied by an additional statement indicating that the place of manufacture refers only to the label or container.” This clarity is enforced so that consumers are not mistaken between the country of origin of a specific container and the product within.

The Textile Labelling Act states, “No dealer shall apply to a consumer textile article a label, or sell, import into Canada or advertise a consumer textile article that has applied to it a label containing any false or misleading representation that relates to or may reasonably be regarded as relating to the article.” The Textile Labelling Act is very similar to the Consumer Packaging and Labelling Act in that both use “false or misleading representation” to mean description of the type, quality, performance, origin or method of manufacture or production that may reasonably be regarded as likely to deceive.  

The advertising of Canadian products, as is the case with much advertising, can be misleading to unsuspecting consumers. A product that does not meet the guidelines set forth by the Competition Bureau cannot legally be labelled as “Made in Canada”.  For companies to avoid the legal implications of the misrepresentation of products, clever labelling through the use of cryptic or disingenuous words has filtered into the marketplace. For example, because a product was “manufactured”, “produced”, or otherwise “created” in Canada does not qualify that it was substantially transformed or that 51% of costs were Canadian. Consumers are unable, or perhaps merely unwilling, to differentiate the influential power of such words. “Advertising is therefore…the intent to influence perception and/or behaviour.”

        

The Competition Bureau, the Consumer Packaging and Labelling Act and the Textile Labelling and Advertising Regulations are organizations and policies that enforce the regulations concerning products made in Canada. Clearly defined are the regulations that Canadian manufacturers must follow.

There are, however, many individuals and companies willing to exploit loopholes that are found in virtually any country. Counterfeiters are well-informed, use sophisticated systems to evade detection and are networked internationally. Counterfeiters reap substantial profit from their activities at the cost of employees, legitimate businesses and the greater Canadian economy. Exports in 2003 represented nearly 40% of Canada’s gross domestic product, and one in three jobs depended on those exports. Counterfeiters will invariably exploit bona fide employment sectors. In 2003, there was an increase of 72% in counterfeiting offences in Canada. This climb has resulted in counterfeiting becoming the sixth largest crime category in the country. Although there has been an attempt to increase penalties for counterfeiting operations, the repercussions are minimal and offer little to no deterrent to stop this criminal activity. For example, in France, the proposed penalty for the most serious counterfeiting activity is five years. This can include producing counterfeits via reproduction, imitation, attaching or removing labels, repackaging and changing labels and packaging. 

Counterfeit products are unregulated and therefore can present public safety concerns. Counterfeit products are of increasingly good quality. Because of this, even highly trained individuals sometimes have difficulty distinguishing the legitimate products from counterfeits. The piracy and counterfeiting of copyrighted and trademarked goods is a global phenomenon accounting for nearly 8% of world trade.  Music CDs, software, computer chips, jewellery, clothing, toys and pharmaceuticals are only a few of the commodities protected by copyright and trademark laws that are being replicated illegally on an ever increasing scale.

Another alarming trend is the blending of legitimate and counterfeit products at retail locations, including stores in reputable, Canadian shops. In addition, individuals who are trained to detect counterfeit goods are being duped into believing a counterfeit product is legitimate. These trends suggest that counterfeiters have manufacturing contacts who use highly developed and relatively costly equipment and materials. Counterfeiting trends are reason for concern because it indicates that counterfeiters have the means to make a substantial investment in their business and are reaping significant profit.

Although the counterfeiting industry is expanding its dominance of the marketplace, manufacturers will continue to produce in Canada for a variety of reasons. Included is the convenience to the North American market, responsiveness to fast-changing demands of the market, a skilled workforce and the quality of products. As well, Canadians are responsive to the growing awareness of environmental, social and economic responsibility. Knowing that products made in Canada adhere to strong guidelines regarding responsible manufacturing practices make those products more attractive to many consumers. Conscientious Canadians and enlightened consumers from abroad are becoming more inclined to purchase goods when assured of company accountability.

Roots Canada makes the claim that although it does business with countries other than Canada, the company maintains its ethical responsibility and standards. “ROOTS is interested in working with suppliers who respect the communities in which they operate, maintain or improve upon existing labor laws and respect the rights and dignity of workers who manufacture ROOTS products.” Each supplier is given, and required to sign, an agreement outlining recordkeeping, communication of standards and other relevant documentation to ensure that the supplier complies with the Roots expectation.  Canadian manufacturers can continue to do business internationally and remain focused on corporate goals and responsible practices.

Through the use of policies created and enforced by the Competition Bureau, the Consumer Packaging and Labeling Act and the Textile Labelling Act, Domestic and International consumers can be assured of Canadian product quality and legitimacy. Not only can consumers be aware of quality and legitimacy through manufacturing practices but also advertising practices. Having such policies in place is a fundamental step towards maintaining the accountability of Canadian products. Although pertinent policies are implemented and enforced through government regulated agencies, there is the chance that counterfeiters may compromise the integrity of products. It is the responsibility of diligent businesses to verify that a product “Made in Canada” measures up to the standards of labeling, advertising, packaging and content.

Sources

Advertising Standards Canada. Canadian Code of Advertising Standards.

Baker, Chris. “Patriotism and Canadian Identity”. May 26, 2003.

Beals, David. “Property Protection”. International anti-Counterfeiting Coalition. May 23, 2004.

Competition Bureau. Guide to “Made in Canada” Claims.

Cunningham, Ralph. “Insight: Maintaining the Anti-counterfeiting Momentum”. Managing Intellectual Property. June 2003.

 

Department of Justice, Canada. Consumer Packaging and Labelling Act.

Department of Justice, Canada. Textile Labelling Act. Chapter T-10

Industry Canada. Company Directory of Textile Industry.

International Trade Canada. Trade and Economical Analysis. Canada’s Merchandise Exports.

Monks, Brian. “Counterfeiting: A Crime That Affects Us All”. IAEI News: The Magazine. May/June 2004

 

Munroe, Susan. “Canada Crime Rates for 2003”. Canada Online.

Reuters. “India's software exports booming” September 13, 2004

Roberts, Dexter. Business Week Online: “China’s Pirates”.  June 5, 2000.  

Roots Canada: Workplace Code of Conduct. September 2004.

Trade Data Online. Trade By Product. Industry Canada

Union des Fabricantes. 2003. “Counterfeiting and Organized Crime”

Ward, Karissa. “Made In Canada: Country-of-Origin and Labelling Regulations” GFTC Online Newsletter. March 2003.

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