Checked Canadian

Answer

What does “Made in Canada” legally mean?

For non-food goods, the Competition Bureau will generally not challenge a “Made in Canada” claim when the last substantial transformation happened in Canada, at least 51% of total direct production costs were incurred in Canada, and the claim carries a qualifier such as “with imported parts”. Food follows separate Canadian Food Inspection Agency rules.

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The three conditions

The Competition Bureau's enforcement guidelines say it will generally not challenge a “Made in Canada” claim on a non-food product if all three of these are true:

1. The last substantial transformation of the product happened in Canada.

2. At least 51% of the total direct costs of producing or manufacturing it were incurred in Canada.

3. The claim comes with a qualifying statement, such as “Made in Canada with imported parts” or “Made in Canada with domestic and imported parts”. A more specific statement such as “Made in Canada with 60% Canadian content” also works.

What counts as a direct cost

Direct costs are the materials used to make the product and the labour that can reasonably be allocated to making it. General overhead is not usually included. Overhead can count only when it relates directly to production and can reasonably be allocated to it.

What “last substantial transformation” means

A product is substantially transformed when it goes through a fundamental change in form, appearance or nature, so that what comes out is a new and different good. Packaging, labelling or simple assembly of imported parts usually is not enough on its own.

Other wording, and symbols

If a product does not meet the “Made in Canada” conditions, the Bureau recommends a more specific description of what happened in Canada, such as “Assembled in Canada with foreign parts” or “Sewn in Canada with imported fabric”. General terms like “manufactured in Canada” are treated the same as “Made in Canada”.

A maple leaf, a flag or another Canadian symbol can make the same impression as the words, so the Bureau assesses those images the same way.

Food is different

For food, the Canadian Food Inspection Agency applies its own guidelines. “Made in Canada” on food means the last substantial transformation happened in Canada and the label says “Made in Canada from imported ingredients” or “from domestic and imported ingredients”. See “Product of Canada” vs “Made in Canada”.

Who enforces it

Origin claims are voluntary. Once a business makes one, the false or misleading representation rules in the Competition Act, the Consumer Packaging and Labelling Act and the Textile Labelling Act apply. The Bureau's thresholds describe when it will generally not act; they are not a licence or a certification.

Checked Canadian reviews manufacturers' documents against these same thresholds and publishes a dated result. It is not a government body and a check is not a legal ruling. How a check works.

Common questions

Does a product have to say where it was made?
Not under these rules. The Competition Act, the Consumer Packaging and Labelling Act and the Textile Labelling Act do not require a country of origin. They prohibit false or misleading claims once a business chooses to make one.
Is “Designed in Canada” the same as “Made in Canada”?
No. A claim about one process, such as design, is acceptable if it is accurate and people would understand it refers only to that process, not to where the product was made.

Sources

  1. Competition Bureau: “Product of Canada” and “Made in Canada” claims (enforcement guidelines)
  2. Competition Act, section 74.01 (false or misleading representations)
  3. Consumer Packaging and Labelling Act
  4. Textile Labelling Act
  5. Canadian Food Inspection Agency: Origin claims on food labels

This page explains public guidance in plain language. It is not legal advice, and Checked Canadian is not a government body.

You may quote this answer with a link back to this page. Text licence: CC BY 4.0. Last updated: .

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