The Canadian Food Inspection Agency (CFIA) has shared new information with CBC News regarding the $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 Loblaw-owned brand featuring shredded broccoli. Despite the packaging clearly stating it was a “Product of USA,” the Toronto Superstore displayed the product with “maple leaf advertising decals” and a “Product of Canada” statement on an in-store shelf tag. According to CFIA regulations, a product labeled as “Product of Canada” must be predominantly created within Canada.
Grocers have taken advantage of the buy-Canadian trend that emerged in response to U.S. President Donald Trump’s trade disputes and remarks about Canada, using Canadian branding to promote international products. Both CFIA and CBC News have identified instances where major grocers misrepresented imported goods as Canadian, a practice now known as “maple washing.”
Following CBC’s investigation last summer, shopper dissatisfaction arose due to the absence of fines imposed on grocers violating labeling regulations. Federal guidelines mandate that food labels and in-store signage must be accurate and not misleading.
CBC News recently inquired about Sobeys, Loblaw’s competitor, not facing fines after a mislabeling incident investigated by CFIA. The case involved a Sobeys-owned Safeway store near Edmonton advertising Compliments avocado oil as “Made in Canada,” despite the product being imported. CFIA suggested that Sobeys might still face penalties as the investigation continues to determine appropriate actions.
Sheila Young’s complaint about mislabeled oil prompted CFIA’s investigation. She expressed dismay at the delay in reaching a resolution, questioning why it took ten months for a decision.
After reporting on the $10,000 Superstore fine, CBC received feedback from shoppers criticizing the penalty as insufficient for Loblaw. Brenda Nicholls from Hamilton suggested that fines for major grocers misleading customers with foreign products labeled as Canadian should start at $100,000 to deter such actions.
To enable six-figure fines, regulatory changes are necessary, as CFIA’s current penalty limit per offense stands at $15,000. Both Loblaw and Sobeys emphasize their commitment to accurate country-of-origin labeling, acknowledging the challenges posed by managing extensive inventories.