“Made in Canada” and “Product of Canada” aren’t interchangeable

As trade tensions rise and consumers prioritize and search for local products, businesses are eager to showcase their Canadian roots and ties. Linking your product to the maple leaf can boost visibility and market share but it also carries risks, especially at this time when consumers have a heightened desire to Buy Canadian.

Under Canadian law, the terms “Made in Canada” and “Product of Canada” are not interchangeable. Using them incorrectly could lead to complaints of deceptive marketing, which could lead to fines and reputational damage.  

Let’s start with what these terms have in common. Both “Made in Canada” and Product of Canada” claims require that:

• The last substantial transformation of the product occurred in Canada.
• A significant portion of the total direct costs of production or manufacturing were incurred in Canada.
• The company maintains adequate substantiation to support claims if challenged.
• The company provides clear disclosures.

Now for the critical differences between the terms:

• To use “Product of Canada,” at least 98% of the production or manufacturing costs must be incurred in Canada.
• All or virtually all major ingredients expected to be Canadian in origin.
• To use “Made in Canada,”
• At least 51% of the production or manufacturing costs must be incurred in Canada.
• The term must be accompanied by a statement that provides a more accurate representation of the product's origin and content.

Let’s bring this to life with an iconic Canadian product: maple syrup.

• If the maple syrup is made from sap processed and bottled in Canada, with 98% or more of the ingredients being Canadian sap, the label “Product of Canada” would be valid.
• In contrast, if the sap is imported but at least 51% of the production process occurs in Canada, then “Made in Canada” can be used along with a statement describing the product’s origin and content, like “Made in Canada with imported sap”.

If a product does not meet either percentage threshold, you cannot use either term. Broader terms such as “produced” or “manufactured” in Canada can be used. However, these may be interpreted by consumers to mean the same as “Made in Canada’, so it’s best to include a statement that clarifies the origin and content of the product. A term like “Designed in Canada” is more informative and it is less likely to give an inaccurate impression.

You can avoid common pitfalls by taking the following steps:

• Ensure everyone on your team understands the rules for your brand and lineup of products.
• Implement periodic reviews of all marketing materials, packaging and communications. Remember to check all collateral for accuracy and general impression.
• Act quickly to correct mislabeling.
• Seek legal guidance if you are unsure about how to proceed.

Misusing country-of-origin labels carries financial risks due to penalties from regulators or legal actions, and risk to your brand’s reputation as it erodes consumer trust, especially at a time when offering Canadian products is a differentiator.

The CMA Guide to Truthful Marketing (available only to CMA Members) provides tips and insights to help marketers understand and avoid misleading representations and deceptive marketing practices.