Moose Knuckles coat maker reaches deal after ‘made-in-Canada’ allegations
Parka producer settles after Competition Bureau claims jackets were created in Asia
Luxury winter coat maker Moose International, Inc. is welcoming an agreement with the Competition Bureau that resolves a complaint over labelling of parkas as made in Canada without imposing a penalty for a breach of the Competition Act.
“It’s great news,” a company spokesperson said.
The representative added that the agreement announced Wednesday does not order payment of costs or other resti- tution sought by the bureau and does not require an admission of wrongdoing on the part of the maker of the Moose Knuckles parka brand.
The Competition Bureau had alleged winter coats marketed as made in Canada were mostly made in Vietnam and elsewhere in Asia, saying only the finishing touches to the jackets, such as the trim, zippers and snaps, were done in Canada, an assertion Moose Knuckles rejected.
The bureau, which considered the matter at a Competition Tribunal hearing, had been seeking $4 million in damages against the Montreal-based firm for allegedly misleading consumers.
A spokesperson for the independent enforcement agency said Moose Knuckles does not admit to the Competition Bureau’s assertions, “and nothing in the consent agreement should be taken as an admission thereof.”
He said consumers who feel that they deserve a refund can contact Moose Knuckles directly and said the company has 30 days to add a hand tag to the current made-in-Canada label on the collar of jackets in stores that would read “Made in Canada with Canadian and imported components.”
Or it can remove the made-in-Canada label entirely.
The company, meanwhile, said its coats, which can retail for more than $1,000, conform to labelling requirements.
“Moose Knuckles long ago applied the Competition Bureau’s made-in-Canada guidelines as the benchmark for organizing our complex global manufacturing processes and the proper labelling of our garments,” CEO Noah Stern said in a statement.
“We look forward to working with the bureau to encourage other Canadian coat manufacturers and garment manufacturers to follow Moose’s lead in fully informing consumers about their own ‘made-in-Canada’ products.”
The company also said the settlement will secure the continued employment of hundreds of skilled workers including designers, fabric and garment engineers, production co-ordinators and managers.
Moose Knuckles, which says it uses textiles and components from abroad in the Canadian manufacture of its products, will also add functions at its Canadian factories and implement an internal compliance program that it says will ensure advertising and labelling issues do not occur again.
Under the settlement, the company agreed to donate $750,000 over five years to charities in Canada including those that give warm coats to underprivileged children.
The company said it has seen no negative sales impact as a result of the allegations and the settlement will not impair marketing winter coats domestically and abroad with a made-in-Canada price premium.