Canada’s food regulatory body has imposed a fine of $10,000 on a store owned by Loblaw for incorrectly labeling imported food as a “Product of Canada.” The Canadian Food Inspection Agency (CFIA) informed CBC News that a Toronto Superstore used maple leaf decals in an in-store display to promote a foreign product, which was misleading to consumers about its origin. The CFIA issued the fine on Jan. 15 but only announced it recently. The agency has the authority to levy fines of up to $15,000 per offense. The specific product that led to the penalty was not disclosed by either the federal agency or Loblaw.
The Superstore in question is situated on Gerry Fitzgerald Drive in the northern part of the city. Loblaw acknowledged the challenge of ensuring accurate country-of-origin labels due to the large inventory but stated its commitment to enhancing processes. The company expressed regret for any confusion caused by the incident.
The fine comes in the wake of increasing consumer frustration over the lack of penalties in cases of misleading Canadian branding on imported food products. The buy-Canadian movement gained traction following concerns over trade disputes and inaccurate country-of-origin claims by grocery stores. The CFIA’s enforcement action against the Superstore follows a previous CBC News investigation that uncovered similar misleading practices by major grocers, dubbed as “maple washing.”
Federal regulations mandate that food labels and signage must be truthful and not deceptive. Instances of misrepresentation included a Toronto Sobeys advertising almonds with a “Made in Canada” label despite almonds not being grown in Canada. Additionally, a Toronto No Frills store owned by Loblaw was found promoting strawberries as “Prepared in Canada” while the packaging indicated they were from the USA.
Shoppers had expressed dissatisfaction over the CFIA’s delay in penalizing grocers involved in such mislabeling practices. The agency emphasized its commitment to addressing food mislabeling and taking appropriate enforcement measures based on various factors. Concerns were raised about Sobeys evading fines despite misleading labeling practices, prompting calls for stricter enforcement.
The CFIA has clarified that “Product of Canada” signifies food entirely or almost entirely produced in the country, while “Made in Canada” requires the last significant transformation of the food product to occur within the country.
