A year after the emergence of the “Buy Canadian” movement across the nation, the Canadian Food Inspection Agency (CFIA) is taking action against grocery retailers found promoting imported goods as Canadian products.
In recent months, CFIA has penalized two Loblaw-owned grocery stores for violating regulations in this regard. Additionally, an investigation into Canadian labeling and advertising practices at Sobeys’ headquarters is underway, according to CBC News.
Responding to consumer demands for supporting local businesses and products, the CFIA emphasized its commitment to safeguarding Canadians from deceptive claims.
Since the inception of the Buy Canadian movement in February 2025, spurred by trade tensions with the U.S., many retailers have capitalized on patriotism by showcasing domestic items prominently.
Last year, CFIA identified 27 violations involving inaccurate country-of-origin claims by grocers, primarily national chains. However, fines were not issued initially, sparking dissatisfaction among consumers.
In a shift towards stricter enforcement, CFIA recently fined a Loblaw-owned Fortinos store in Toronto $10,000 for misleadingly presenting a foreign-made product as Canadian. The agency highlighted the importance of accurate food labeling and signage to prevent consumer deception.
Federal regulations mandate that food labels and in-store displays must provide truthful information, without misleading consumers. The recent fines indicate a firmer stance by CFIA in ensuring compliance with these rules.
The agency disclosed a total of 78 violations related to country-of-origin claims on food labels and advertisements at retail establishments between November 2024 and February 2026. This escalated enforcement approach is a response to the lapse of the grace period provided to retailers for rectifying misleading signage.
The CFIA hinted at potential upcoming fines, withholding specifics on the Sobeys investigation due to its ongoing nature. The probe concerns incidents where imported products were inaccurately labeled as Canadian, infringing on labeling regulations.
Both Loblaw and Sobeys, major grocery chains in Canada, have emphasized their commitment to accurate country-of-origin labeling, acknowledging the complexities involved in managing extensive inventory.
Former CFIA inspector Terri Lee criticized the $10,000 fines imposed on large corporations like Loblaw, suggesting that penalties should be proportionate to the company’s size. Lee advocated for more substantial fines to serve as a meaningful deterrent against misleading claims.
CFIA’s enforcement strategy includes fines, warnings, license suspensions, and prosecution referrals as necessary, with fines currently capped at $15,000 for severe violations. The agency also highlighted the government’s plan to review penalty structures to ensure noncompliance is not seen as a cost of doing business, with outcomes expected in the 2026 federal budget.