With both the United States and Canada threatening to impose tariffs on a wide variety of goods, including numerous consumer products, Canadian consumers are increasingly eager to purchase local goods. This growing interest in homegrown products has advertisers keen to highlight items made right here in the Great White North.

But before you slap a "Made in Canada" label on your product or showcase the iconic red maple leaf, it's crucial to understand the legal requirements that govern these representations. There are many rules that advertisers must consider before presenting a product as being "Canadian". These rules apply to both manufacturers of such products and retailers who wish to include some in-store messaging regarding to these products.

Here are some of the key legal rules to keep in mind when promoting your products as being from this side of the border and to avoid attracting regulatory attention rather than consumer attention.

1. "Made in Canada" vs. "Product of Canada"

Not all claims about being Canadian-made are created equal. With supply chains frequently crossing borders, it's common for products to be manufactured in part across multiple countries, with materials sourced from many different parts of the world and products shipped internationally at various points in the manufacturing process.

In light of this, whether a product is "Made in Canada" is not as clear-cut as it may first appear! The Competition Bureau has set out strict and detailed guidelines regarding how organizations must establish the claims that can be made about a product originating in Canada.

According to Guidance issued by the Bureau, a "Made in Canada" claim is appropriate where all three of the following conditions are met:

  1. The last "substantial transformation" of the good occurred in Canada.
  2. At least 51% of the total direct costs of producing or manufacturing the good were incurred in Canada.
  3. The "Made in Canada" claim is accompanied by an appropriate qualifying statement, such as "Made in Canada with imported parts" or "Made in Canada with domestic and imported parts". This can also include more specific information such as "Made in Canada with 60% Canadian content and 40% imported content". However, the Bureau's view is that all "Made in Canada" claims must have a qualifier.

In contrast, "Product of Canada" claims are stricter. The Bureau provides that this claim may be made where:

  1. The last "substantial transformation" of the good must have occurred in Canada.
  2. At least 98% of the total direct costs of producing or manufacturing the good have been incurred in Canada.

As such, in making either a "Made in Canada" or a "Product of Canada" claim, companies must first establish where the last "substantial transformation" of the good took place. A "substantial transformation" will be where the goods have undergone a "fundamental change in form, appearance or nature", such that they are different goods from those prior to the process. Simply packaging a foreign-made good in Canada will not count (though see the next section for the possibility of more targeted claims)!

Second, careful record-keeping must be done to establish where the costs of manufacture and production, including labor that can be reasonably allocated to manufacture, were incurred.

Note also that additional specific considerations apply when making origin claims regarding food or beverage products, which are separately regulated by Health Canada— read our guidance here.

2. Other references to Canadian origins

If a product does not qualify as "Made in Canada" or "Product of Canada", there may still be ways to showcase more limited Canadian connections—provided the company is careful to avoid creating a "misleading" impression with respect to their connection to Canada.

Where products cannot meet the requirements discussed in the previous section, but do have a more limited connection to Canada, the Bureau advises advertisers to use specific language that accurately reflects the limited extent of Canadian involvement.

For example, the Bureau suggests that an advertiser indicate "Assembled in Canada with foreign parts" or "Sewn in Canada with imported fabric" as examples of claims that may be made.

Such claims should be precise and not open to interpretation. They should not mislead consumers or exaggerate the extent to which a product originated in Canada. General terms such as "produced" or "manufactured" in Canada should be avoided as these could be misleading. According to the Bureau, these terms "are likely to be understood by consumers as synonymous with a 'Made in Canada' claim and should therefore comply with the requirements for 'Made in Canada' claims".

The Bureau also provides that an advertiser can reference specific Canadian processes or components, such as "designed in Canada", or stating that the motor of a lawnmower "was made in Canada from domestic and imported parts". But be careful—it must be clear that these claims pertain only to the particular process or part, and not to the product as a whole.

3. Flying the flag & using Canadian symbols

Symbols like the Canadian flag and the 11-point maple leaf are powerful tools allowing advertisers to evoke national pride and indicate the authenticity of their products. However, marketers should approach these symbols with care, as they are protected by a range of laws to ensure they are used respectfully.

The Canadian flag and other government symbols fall under the protection of legislation such as the Trademarks Act and the Copyright Act, which prevent their misuse for commercial gain. An advertiser wanting to use these symbols to promote their products will have to obtain consent from the Canadian government.

Also, be mindful that displaying the flag or symbols such as the maple leaf (including the 11-point maple leaf, but also potentially more natural depictions) could be seen as a claim about the product's origin- implying it to be Canadian. If the product was only partially made in Canada, you'll need to qualify the use of these images. If the product has only minimal or no ties to Canada, and was primarily produced or manufactured elsewhere, wrapping it in the flag or maple leaves could easily be seen as misleading.

4. Regional and provincial considerations

It's not just national pride that matters—regional pride counts too!

An advertiser who makes statements such as "Made in Ontario" or "Produced in British Columbia", will have to ensure that these claims are true. Though the Competition Bureau guidance discussed above addresses national claims, the general truth in advertising rules will govern any provincial or regional origin claim, and the Bureau guidance may be seen as providing some insight on what to consider when looking to substantiate such a claim.

Some provinces also have their own rules. For example, Quebec requires that a business obtain permission from the province to use its flag or symbols—including a fleur-de-lys that could be confused with the one used by the province—for promotional purposes.

5. Third-party certifications

Using third-party certifications can add extra weight to a Made in Canada claim. Whether it's the "Buy BC" logo for British Columbia food and drink products or the "Produit du Québec" certification for Quebec goods, these accreditations can help build consumer trust and allow them to easily identify products as local.

However, these certifications come with specific rules—each has its own eligibility criteria, which often include minimum production or manufacturing standards. These may differ from the federal guidance discussed above. To benefit from a certification, the product will have to meet the applicable criteria of its issuer, and in many cases the advertiser or manufacturer will have to get formal approval to use the certification name and logo.

Marketers should also be cautious when using symbols that could falsely give the impression of indicating third-party certification. Logos, badges, or other design elements that appear to come from third parties but are actually self-created, could be misleading and may land an advertiser in hot water.

6. Additional considerations

Advertisers who want to show their Canadian pride should keep a few other things in mind. For example:

  • Bank notes: Anyone wishing to feature Canadian bank notes in their ads must obtain approval from the Bank of Canada.
  • Landmarks: Marketers wishing to feature certain Canadian landmarks in their material may require permission to do so. For example, consent must be obtained to commercially reproduce images or designs of the CN Tower.
  • Public figures or brands: It may be appealing to reference Canadian celebrities or their work, or to proclaim your love for a beloved Canadian sports team, in order to show your national pride or get consumers excited. But before proclaiming that Justin Bieber loves your product, featuring a Celine Dion song in your commercial, or tweeting "Go Habs Go", keep in mind that names, images, logos and other artistic works are in many cases protected intellectual property rights, and celebrities also have rights of privacy, personality, and publicity.

On a more sensitive note, advertisers should be cautious when making any statement that could be perceived as political. Even if you're not taking a stance, consumers may interpret marketing in light of current political climates. With tariffs, the prorogation of parliament, the upcoming Ontario—and likely federal—election and shifting administrations, advertisers should tread lightly when addressing anything with even potential political connotations.

7. The bottom line: The truth matters

The golden rule of advertising law is simple: be truthful. Any and all advertising claims must be accurate, in terms of both their literal meaning and the general impression they create.

When assessing the truthfulness of a claim, the question is what impression it will create for the "credulous and inexperienced" consumer who takes "no more than ordinary care to observe that which is staring him or her in the face" If the claim would give this person a misleading, or worse, false, impression, it's a no-go. This is a low bar—so always aim to be transparent and straightforward in your advertising, and make sure to consider how consumers will construe your claims, not just what you understand them to mean.

False or misleading claims are subject to a penalty of up to the greater of $10,000,000, three times the value of the benefit derived from the conduct, or, if that amount cannot be reasonably determined, 3% of the corporation's annual worldwide gross revenue. So, a misleading "Made in Canada" claim or misuse of Canadian symbols implying such a claim can be a costly mistake!

Finally, note that separate from the above, Canadian customs laws establish various rules governing origin marking on, notably, imported goods. This is a separate regime, not to be confused with the considerations discussed here.

When in doubt, seek legal advice.

In closing, as you proudly promote your Canadian-made products, remember to keep these legal considerations front and centre. Doing so will help you avoid the pitfalls of misleading advertising and maintain the trust of your consumers.

For assistance in navigating the rules discussed above, or in assessing the compliance of your promotional assets, don't hesitate to contact the authors or any member of Gowlings WLG's Advertising and Product Regulatory team.

For ongoing updates and insights on the US tariffs and Canada's counter tariffs, visit our tariffs resource hub.