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 falsely promoting imported food as Canadian. The mislabeled item in question was President’s Choice broccoli slaw, a Loblaw-owned brand featuring shredded broccoli as a substitute for traditional coleslaw. The CFIA uncovered that a Toronto Superstore showcased these salad bags with “maple leaf advertising decals” and a “Product of Canada” declaration on an in-store shelf tag, contradicting the actual packaging that clearly indicated “Product of USA.”
To qualify as a “Product of Canada,” a food item must be predominantly or entirely produced within Canadian borders, according to CFIA regulations. Big grocery chains have taken advantage of the growing buy-Canadian trend, which gained traction in response to trade tensions initiated by U.S. President Donald Trump, by leveraging Canadian branding to promote foreign-sourced products within their stores. This practice, commonly referred to as “maple washing,” has raised concerns about misleading consumers.
While the CFIA has only announced the aforementioned Superstore fine thus far, CBC News and the CFIA have exposed multiple instances where major grocers have misrepresented imported goods as domestically produced. In a separate case involving Sobeys-owned Safeway, a mislabeling incident regarding Compliments avocado oil was investigated by the CFIA last April, with a resolution taking four months to reach. Despite Sobeys rectifying the labeling error, the CFIA indicated that potential fines are still under consideration as part of an ongoing assessment.
The CFIA’s handling of the mislabeled oil, reported by consumer Sheila Young living near Edmonton, has drawn criticism for the prolonged decision-making process. Young expressed disappointment over the extended timeline, questioning the delays in reaching a conclusion on potential fines for the misrepresentation.
Following the revelation of the $10,000 fine levied against Loblaw, some consumers and industry observers have argued that the penalty is insufficient for a major retailer like Loblaw, which reported significant retail revenue for the quarter. Suggestions have been made for stricter penalties, starting at $100,000, to deter future mislabeling practices among grocers. However, current regulations limit CFIA fines to a maximum of $15,000 per offense, necessitating regulatory changes to impose higher penalties.
Both Loblaw and Sobeys have emphasized their commitment to accurate country-of-origin labeling, acknowledging the complexities associated with managing extensive inventory while ensuring compliance with labeling requirements.