The Canadian Food Inspection Agency (CFIA) recently disclosed additional information to CBC News regarding the $10,000 penalty imposed on a Loblaw-owned Superstore for incorrectly promoting imported food as Canadian. The mislabelled product in question was President’s Choice broccoli slaw, a Loblaw-owned brand that is a variation of coleslaw made with shredded broccoli. Despite the packaging clearly stating “Product of USA,” a Toronto Superstore showcased the bags of salad with “maple leaf advertising decals” and a “Product of Canada” statement on an in-store shelf tag. According to CFIA regulations, for a food item to be labeled as “Product of Canada,” it must be predominantly or entirely produced in Canada.
Retailers have seized the opportunity to align with the buy-Canadian trend, which gained traction in response to events such as U.S. President Donald Trump’s tariff disputes and remarks about Canada potentially becoming the 51st state. This led to the adoption of Canadian branding by major grocers to highlight domestically sourced products. However, both the CFIA and CBC News have uncovered instances where prominent retailers have misrepresented imported food as domestically sourced, a phenomenon referred to as “maple washing.”
Following investigative reports by CBC last summer, concerns were raised by shoppers over the lack of fines issued by CFIA to grocers violating labeling regulations. Federal guidelines mandate that food labels and in-store signage must be accurate and not deceptive.
In a separate case involving Sobeys-owned Safeway store near Edmonton, the CFIA flagged a mislabeling incident where house brand Compliments avocado oil was advertised as “Made in Canada” despite being imported. While Sobeys rectified the issue, CFIA mentioned that ongoing assessment is being conducted to determine if further penalties are warranted.
Sheila Young, who raised the complaint about the mislabelled oil, expressed disappointment over the prolonged decision-making process by CFIA, questioning the delay in reaching a resolution after ten months.
Regarding the $10,000 fine imposed on Loblaw, some consumers criticized the penalty as insufficient for Canada’s largest grocer, especially in light of Loblaw’s substantial retail revenue. Advocates of the buy-Canadian movement, like Brenda Nicholls from Hamilton, suggested that fines for major grocers misleading consumers about product origins should start at $100,000 to deter such practices.
It is worth noting that current regulations limit CFIA’s penalty imposition to a maximum of $15,000 per violation. Both Loblaw and Sobeys have emphasized their commitment to providing accurate country-of-origin information despite the challenges posed by managing extensive inventory.