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Food retailers fined 10K for misleading “Canadian” labels as scrutiny grows

Many Canadians are intentionally trying to buy more Canadian-made products, but what you see isn’t always what you get.

Federal regulators say several food businesses have been fined for misleading or inaccurate “Product of Canada” labelling, as more shoppers look for Canadian-made goods amid rising trade tensions and cost pressures.

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In a recent update, the Canadian Food Inspection Agency said it has issued $47,000 in penalties since April 2025 to companies that failed to meet origin labelling requirements. “Consumers deserve origin labels they can trust so they can make informed choices,” the agency said in a statement.

Grocery stores fined as enforcement ramps up

Among the businesses penalized were two Ontario grocery stores — a Fortinos location in Etobicoke and a Real Canadian Superstore in Toronto — each fined $10,000 for mislabelling products.

According to CTV News (1), the Fortinos case involved cheese products, while the Superstore incident related to a packaged broccoli slaw. The CFIA did not disclose further details about the specific items.

The agency said it has recorded 104 instances of non-compliance related to country-of-origin labelling over the past year through inspections, complaints and surveillance, though only a handful resulted in financial penalties.

That enforcement push comes as more Canadians actively try to support domestic producers — a trend that has accelerated in recent years.

“The preference for supporting Canadian business is unlike anything I’ve seen in my lifetime,” Richard Leblanc, a professor at York University, told CTV News Toronto. “I think it’s important for grocers to get this right so we don’t have regulatory fines and we don’t have frustrated or confused consumers.”

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What “Product of Canada” actually means

Part of the challenge for consumers is that not all “Canadian” labels carry the same meaning.

Under federal guidelines, a product labelled “Product of Canada” must have nearly all of its ingredients, processing and labour sourced domestically. By contrast, labels such as “Made in Canada” may still include imported ingredients, provided the final processing takes place in Canada.

Retailers are responsible for ensuring that the claims they make, whether on packaging or in-store signage, accurately reflect those definitions.

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Some industry observers suggest the issue may not always be intentional. David Soberman, a marketing professor at the University of Toronto, said the fines themselves are relatively modest.

“Not really as a punitive fine because $10,000, even for a grocery store like Loblaws … is relatively small,” Soberman told CTV News Toronto, adding that many cases may come down to outdated signage or operational gaps rather than deliberate deception.

Even so, reputational risks may carry more weight than the penalties themselves. Leblanc noted that mislabelling can erode consumer trust and raise legal concerns for retailers.

For shoppers, the CFIA says the best defence is awareness. Consumers are encouraged to look closely at labels, understand the differences between common claims and report products they believe may be misleading.

As demand for Canadian-made goods continues to grow, regulators appear to be increasing scrutiny — with the expectation that labels match what’s actually on the shelf.

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CTV News (1)

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Steven Brennan Contributor

Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.

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