Better safe than sorry, eh: Competition law and Made in Canada Claims
On April 24, 2025, WEOC hosted Majid Charania, Director of Compliance with the Competition Bureau of Canada. Majid discussed what the Bureau’s duties are, what the term “Made in Canada” means, and even some recent investigations.
Highlights
- The Competition Bureau promotes fair business practices — Investigating anti-competitive behaviour, enforcing laws against deceptive marketing, reviewing mergers, and advising governments on pro-competition policies.
- Competition law applies to all businesses — Whether you’re a startup or a large company, you’re expected to play by the same rules when it comes to fair competition.
- Deceptive marketing is a major risk area — Be honest and clear in advertising, especially with claims like “Made in Canada,” which must meet specific criteria.
- Even small mergers can be reviewed — The Bureau may investigate any deal that could reduce competition, regardless of the dollar value.
- Compliance doesn’t have to be complex — Small businesses can use free, practical tools from the Competition Bureau to stay compliant and avoid legal trouble.
Important Links
“Made in Canada” Guidelines – What “Made in Canada” and “Product of Canada” means
Labelling Products – What information needs to be added to different items
Compliance Hub – How to stay on the right side of the law, no matter your business size
Compliance Bootcamp – Short videos breaking down each area of the law
Complaint Form – Submitting complaints to the Bureau can be made easily online
Information Bulletin on the Communication of Confidential Information Under the Competition Act: The Bureaus confidentially obligations for businesses who share information
Competition Law – Why it Matters
In today’s business world, it’s easy to assume that legal matters like competition law are only relevant to large corporations. But in Canada, competition law applies to businesses of all sizes, from startups to established enterprises. Whether you’re launching a new venture, advising clients, or growing your business, understanding how these laws work is not only smart—it’s essential.
The Competition Bureau: What it Does
At its heart, competition law is about promoting fairness in the market. It ensures that businesses compete on a level playing field, giving consumers access to better prices, more choices, and greater innovation. The Competition Bureau of Canada is responsible for enforcing these rules, focusing on protecting the competitive process—not individual companies. This means the goal is to create conditions where all businesses, regardless of size, can thrive based on merit, not market manipulation.
“The Competition Bureau’s role is not to protect an individual business or competitor—it’s really to protect and promote the competitive process in markets.”
Key Areas of the Law to Know
There are several key areas of competition law that business owners should be aware of. One of the most critical is the prohibition against anti-competitive agreements, also known as cartels. These occur when competitors collude instead of competing—for example, by fixing prices, rigging bids, or agreeing not to poach each other’s employees. These activities are illegal and can result in significant penalties, even if they seem informal or “understood.” Importantly, size doesn’t matter here. Whether your company is large or small, these rules apply to everyone.
Government Rules and Market Fairness
Another major area involves abuse of market power. A company that holds a dominant position in a market isn’t necessarily breaking the law, but if it uses that power to suppress competition—by locking in customers with restrictive contracts or blocking new entrants—it can run afoul of the law. The Bureau investigates such behavior, even when it involves subtle or complex tactics that harm smaller competitors or stifle innovation.
Mergers and acquisitions are also subject to scrutiny. Even transactions that seem minor can raise concerns if they reduce competition within a specific market. This is especially relevant for entrepreneurs planning to sell their business. It’s important to understand that the Bureau has the authority to investigate any merger, regardless of the size of the deal, if there’s a potential for competitive harm.
Perhaps the most relatable area for many small businesses is deceptive marketing. The Competition Act prohibits businesses from making false or misleading claims that could influence consumer decisions. This includes everything from exaggerated product performance to misleading sales promotions—like claiming a discount is “limited-time only” when it’s actually permanent. The law considers not just the literal meaning of a claim, but the overall impression it creates. Disclaimers in fine print don’t always protect you if the main message is misleading.
Made in Canada: What it Means
One specific aspect of marketing that often raises questions is the use of “Made in Canada” or “Product of Canada” labels. These claims fall under the general rules against false or misleading advertising. To call something “Made in Canada,” at least 51% of the direct production costs must be incurred in Canada. The threshold is even higher for “Product of Canada”, where 98% of the content must be Canadian. If a product doesn’t meet these standards, businesses are encouraged to use more accurate terms, such as “Assembled in Canada,” to avoid misleading consumers. It’s also worth noting that while the Competition Bureau oversees these claims for non-food items, the Canadian Food Inspection Agency handles food-related labeling.
It’s Not Just for Private Business
Competition issues don’t just arise from private business behavior—they can also stem from government regulations. Many Canadian industries are heavily regulated, and sometimes, the rules themselves can unintentionally favor larger, established players while making it harder for small businesses or new entrants to succeed. The Competition Bureau plays an advisory role here, offering guidance to policymakers on how to make regulations more competition-friendly. Small businesses and their advisors can help by highlighting areas where existing rules create unfair barriers to entry or growth.
The Competition Bureau and Small Businesses
So, what can small businesses do with all this information? Compliance is key—and it doesn’t have to be complicated or expensive. Even simple, scaled-down compliance measures can go a long way in protecting your business. Start by learning the basics of the law, then take steps to assess potential risks in your operations and train your team accordingly. The Competition Bureau provides excellent free resources to help you do this, including a Compliance Hub and a Made in Canada Information Hub that consolidate useful guidance and best practices.
In Summary
Ultimately, staying informed about competition law isn’t just about avoiding fines or legal trouble. It’s about building a fairer, more transparent marketplace—one where small businesses have a real shot at success. Whether you’re marketing a product, planning a merger, or just trying to navigate a crowded industry, a little knowledge goes a long way.
To view the original webinar, click here.