The Canadian Food Inspection Agency (CFIA) has shared additional information with CBC News regarding a $10,000 penalty imposed on a Loblaw-owned Superstore last month for falsely promoting imported food as Canadian. The mislabeled item in question was a President’s Choice broccoli slaw, a type of coleslaw made from shredded broccoli, which is a Loblaw-owned brand. The CFIA revealed that a Toronto Superstore displayed these salad bags with “maple leaf advertising decals” and a “Product of Canada” statement on the shelf tag, despite the packaging indicating it was a “Product of USA.”
In order for a food product to be labeled as “Product of Canada,” it must be predominantly or entirely produced in Canada, as outlined by the CFIA. Grocers have taken advantage of the buy-Canadian trend that emerged in response to trade tensions and remarks made by U.S. President Donald Trump. This movement prompted retailers to use Canadian branding to promote domestically sourced products. However, both the CFIA and CBC News have identified instances where major grocers have misrepresented imported goods as Canadian, a practice known as “maple washing.”
While the CFIA has only announced the Superstore fine so far, questions have been raised about why Loblaw’s competitor, Sobeys, did not receive fines following a similar mislabeling incident last April. The CFIA indicated that Sobeys may still face penalties for the case involving Compliments avocado oil, where the packaging suggested it was Canadian despite being imported.
The CFIA became aware of the mislabeling issue with the avocado oil after a consumer, Sheila Young, lodged a complaint. Young expressed frustration over the lengthy process in determining whether fines would be issued, stating that ten months seemed excessive for a resolution. Following the news of the $10,000 fine imposed on Loblaw, some consumers criticized the penalty as insufficient, considering the company’s substantial revenue.
Advocates for stricter enforcement suggest that fines for grocers falsely promoting foreign products as Canadian should start at $100,000 to deter such actions. However, current regulations limit the CFIA to penalties of up to $15,000 per offense. Both Loblaw and Sobeys emphasized their commitment to accurate country-of-origin labeling but acknowledged the challenges posed by managing extensive inventories.
