Outerwear maker accused of faking 'Made in Canada' claim

File photo.

Wednesday, April 27, 2016, 4:24 PM - A high-end Canadian outerwear manufacturer has been accused of having its parkas made overseas, while claiming the products are made in Canada.

Canada's Competition Bureau announced Wednesday it will take action against what it believes to be "deceptive marketing practices" by the company Moose Knuckles.

Moose Knuckles is an upscale brand which produces winter jackets that start at around $600, with some products priced at more than $1,000.

"The parkas are marketed as 'Made in Canada' when they are mostly manufactured in Vietnam and elsewhere in Asia," the bureau said in a statement.

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"The application alleges that only the finishing touches to the jackets, such as adding the trim, zippers and snaps, are done in Canada."

The CBC reports the bureau wants Moose Knuckles to start making all of its products in Canada, arguing the 'Made in Canada' branding is misleading customers.

"Consumers are willing to pay a premium for 'Made in Canada' products, and manufacturers know this," senior deputy commissioner Matthew Boswell said in a statement.

According to the Competition Bureau, a product is considered to be 'Made in Canada' if:

• The last substantial transformation of the good occurred in Canada; 
• At least 51% of the total direct costs of producing or manufacturing the goods have been incurred in Canada; and
• "Made in Canada" products are accompanied by an appropriate qualifying statement, like as "Made in Canada with imported parts".

Moose Knuckles president Alay Twik told the CBC the company rejects the allegations.

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"Moose Knuckles' core products are made in Canada and always have been," Twik told the publication.

Source: CBC