Moose Knuckles' 'Made in Canada' parkas weren't — settled with $750K in donations

Moose Knuckles sold premium parkas, retailing from $595 to over $1,000, on the strength of one claim: Made in Canada. The Competition Bureau concluded the claim overstated the fact — certain parkas were made with imported components, and the brand's marketing and labelling did not say so. In April 2016 the Bureau launched legal proceedings and asked the Competition Tribunal for a $4 million penalty.

The case settled out of court on 7 December 2016: Moose Knuckles agreed to donate $750,000 over five years to Canadian charities, including ones that provide winter jackets to children in need, to make clear that the affected parkas are made with Canadian and imported components, worldwide, and to run an internal compliance program for advertising and labelling.

Commissioner John Pecman called it an innovative resolution that let consumers keep trusting Made in Canada — and drew the rule for origin claims: the claim must match the production that actually happens in the country. A donation instead of a penalty made the case the Bureau's template for origin-marketing disputes.