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Making General Promises Does Not Equal False Or Misleading Representations

The new Regulations on "Made In Canada" and "product of Canada" claims introduce a distinct distinction between "made in Canada" and "made in Canada product". All "made in Canada' claims are subject to the higher threshold of Canadian material (Stuart Mill Companies Ltd., in the case of Made in Canada Leather Products). In addition, all "made in Canada' claims must provide evidence that the item is an 'asset of the Canadian government' and the'source country' for its production. Furthermore, all'made in Canada' claims must list the country of manufacture as follows: Canada. This is an important inclusion because if the claim deals with goods that have been manufactured in one country and shipped into another country, this requirement becomes an explicit part of the'made in Canada' claim.

There are a number of companies that make all sorts of 'fabricated' items that are 'made in Canada' but do not actually fall under the heading of "made in Canada' per se. Examples include furniture (such as end tables or armoires), musical instruments, fashion accessories, construction materials, luggage, clothing, kitchen appliances, China, soft drinks and more. Some of these items fall under tariff codes and classifications in the CANFA, while many others are covered by the MEPA or the Memorandum and Articles of Agreement, which provide national rules for manufacturers and importers. It is important to note that if an item is imported into a country and then exported out of that country to another country, it would need to be declared as a'made in Canada' item and the exporter of the item would need to ensure that the declaration is done correctly. An example of this would be if a designer jeans company wanted to sell jeans in the United States and imported them into Canada before shipping them over the border.

In addition to clothing, there are a variety of other manufactured goods that are commonly referred to as Canadian, but not made in Canada. Examples include toys, sweaters, hats, food items, medicine, glasses, dishes, cookware, woodworking tools and architectural products. Many of these products are actually manufactured in other countries such as the United States, the United Kingdom or Sweden. The best way to ascertain the country of origin for an item would be to contact the exporter. For example, if you were interested in purchasing a wooden slatwall saw in Ontario you would search for the model number and type of saw in an online store in Ontario, not in a country such as Sweden.

The soft drink industry is large in both Canada and the United States. This is partly because of the huge production of soda and partly because of the fact that most of the product is made in Mexico. While soft drinks do not require the same licensing or regulation as does the automobile industry, the soft drinks industry has a lot of political clout. As a result, soft drinks are often made with ingredients from Canada and the United States and shipped to the United States, where they are sold at discount prices. This is often a way for manufacturers to reduce the cost of manufacturing a product.

When a product is imported into a country, especially one where there are restrictions on importing foreign goods, it is necessary to ensure that all claims made by the exporter are true and accurate. The Truth Act applies to all statements and representations made by means of publications and broadcasts regarding Canadian content and includes all records and documents that relate to the importation, export and landing of such articles. The False Or Misleading Claims Act applies to all statements and representations concerning the production, importation, exportation, landing and disposal of items. The amendments to the Copyright Act also incorporate a new provision which includes a statement that the following are not warranties: (a) any guarantee or warranty that may be given in connection with the sale of a product; (b) any promise that describes a work in the form of an expression; (c) any description of material used, including any illustration used in books, magazines, newspapers, signs, posters, banners or other medium, which does not give rise to a claim that the article exists; and (d) any statement or assertion that states that the results achieved by the use of the article actually result in the creation of works produced by Canadian artists.

For example, if an item is described as having been "imported" it could be interpreted in many ways. The word "imported" could mean that the item came directly from another country and the country or countries who supplied the item did not have an agreement with the exporter under the False Or Misleading Claims Act to guarantee that the item came from that country or was free of defects when it left the country. The phrase "qualified statement" could be interpreted as referring to the fact that the description must be true and accurate or that the information must be supported by some evidentiary or other evidence that can reasonably confirm the accuracy of the statement. Even if there is no supportive evidence that the description is true, a qualified statement cannot be classified as being false or misleading.

A number of other sections of the Act also apply to the making of representations about goods, services or manufacturing or other activities that do not relate to the offering of products or services for sale. For example, if a manufacturer recommends, supports or recommends the use of a product for treating a condition rather than for curing the same condition, that recommendation can be considered misleading if it is not supported by the evidence that the condition is treated effectively. Similarly, if a person offers a product for sale that can effectively cure or treat a condition but that person recommends that the product is intended for treating all conditions, that recommendation would be found to be misleading if it were not supported by some evidentiary support. Similarly, if a person sells, provides or advertises a product, service or manufacturing procedure that could potentially increase or decrease the risks of using a product, service or process for a condition, the advertisement could be found to be misleading if it does not provide reasonable information that increases or decreases the risks. Similarly, if a person makes any statement that is intended to influence or dissuade a buyer from purchasing or using any item, the statement could be found to be misleading if it is not supported by the evidence that the statement is true or false.

In addition to the general impression claims that this country's Federal Trade Commission has crafted, it has also established a special rule for manufacturers of foods that are classified as non-foods. According to this rule, if a manufacturer makes representations about the safety or effectiveness of a product that relates to that product being a food, the manufacturer must either (a) state the representation is a general or particular statement about the safety or effectiveness or (b) state in the representation that the product is safe as a food even though it is not classified as a food. The manufacturer must also bear an express burden to demonstrate that the claim is true and that the claim is supported by the evidence. If the manufacturer fails to do so, that manufacturer could be found liable under the claims under the false or misleading statements provisions of the acts.