Real Canadian Superstore fined for ‘misleading’ Product of Canada displays

EDITOR’S NOTE: An earlier version of this article said Global News had reached out to Loblaw for comment on Tuesday. A Loblaw spokesperson said the email address was incorrect. This article was updated with their response sent on Thursday.

Real Canadian Superstore has been fined $10,000 by the Canadian Food Inspection Agency for what the agency says were “misleading” displays about “Product of Canada” labels.

The CFIA said in a social media post on Feb. 17 that the fine relates to the use of the term, which, along with “Made in Canada,” can only be claimed if specific criteria are met for those items.

This comes as the Buy Canadian movement over the past year has seen consumers prioritizing domestically sourced goods and services, and even domestic travel destinations that support the local economy amid U.S. tariffs and threats of annexation by U.S. President Donald Trump.

It wasn’t made clear which products were featured in the “displays” in question at store 1033, which company listings say is located at 51 Gerry Fitzgerald Dr. in Toronto.

Real Canadian Superstore is a subsidiary grocery brand under the Loblaw banner of stores.

Global News sent a request for comment to the CFIA on Tuesday, and asked what the specific products were, the nature of the “displays” and how they appeared to customers, and if there are plans to expand the investigation to other stores and products.

A written response was received late Thursday, and confirmed the fine was issued on Jan. 15.

“On Jan. 15, 2026, the Canadian Food Inspection Agency (CFIA) issued a penalty of $10,000 to Real Canadian Superstore (store #1033) for a violation under the Safe Food for Canadians Act (SFCA), subsection 6.1, which relates to inaccurate labelling of foods packaged, labelled or advertised by a retailer,” said the CFIA.

“In this instance, the penalty related to an in-store retail display with maple leaf advertising decals placed next to a product information tag for products not originating from Canada. This created a product advertisement that is misleading to consumers regarding the origin of the product.”

Get breaking National news

Get breaking Canada news delivered to your inbox as it happens so you won't miss a trending story.

Sign up for breaking National newsletter Get Started

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The CFIA statement continued:

“It is the food industry’s responsibility to ensure that all food products they sell in Canada meet Canada’s legislative requirements. This includes products that are produced in Canada or imported.”

The CFIA said any consumers or industry members with labelling concerns are encouraged to report those to the agency.

Loblaw issued a written statement to Global News after a request for comment sent on Thursday.

“We take our labelling and signage responsibilities seriously and are committed to meeting applicable requirements. With thousands of products in our stores, many of which are sourced from different countries regions throughout the year, information can change quickly. While we work hard to keep everything up to date, there are times when signage may not be refreshed as quickly as inventory is replenished,” said a spokesperson for Loblaw.

“We have processes in place to support accuracy, but like any retail environment, there is still the potential for human error. That’s why we’re continuing to strengthen our processes. We’re sorry for any confusion this may have caused. If something doesn’t look right, we encourage customers to let us know so we can correct it as quickly as possible.”

2:19 Business Matters: Why the ‘buy Canadian’ movement could ramp up during trade talks

In March 2025, at the start of the trade war, the CFIA said it was tracking a rise in complaints about items that may have been mislabelled as “Product of Canada” or had other missing details about the origin of products or ingredients.

A fine of $10,000 for a business is considered a “very serious” violation, according to the CFIA’s administrative monetary penalties list, which includes violations “committed by persons or companies in the course of business or for financial gain, the penalty amounts may be adjusted up or down, depending upon the total gravity value.”

Specific guidelines must be followed when claiming products have Canadian origins to maintain transparency for consumers.

Canada’s Competition Bureau maintains guidelines and enforces the terms of use for “Product of Canada” and “Made in Canada” on non-food products, while the CFIA does so on food products.

For the “Product of Canada” label, the CFIA says the food product itself must source “virtually all major ingredients, processing, and labour” in Canada, and up to two per cent of the product can be sourced elsewhere. It adds that some examples of non-Canadian components of how a product is made for sale include spices, food additives, vitamins, minerals and flavouring preparations.

A “Product of Canada” can also be something that is grown in Canada from imported “agricultural inputs,” including seeds, fertilizers, animal feed and medications.

The CFIA also says it would not disqualify a food product from the “Product of Canada” claim if it used packaging materials sourced from outside Canada.

One example the CFIA provides is oatmeal cookies approved for the “Product of Canada” claim.

In the example, the cookies are manufactured in Canada using Canadian oatmeal, enriched flour, butter, honey and milk, as well as imported vanilla, and the flour used may contain vitamins that are not from Canada.

1:44 Canadians shift spending habits, but still snubbing U.S.: Ipsos poll

For a food product to be considered “Made in Canada,” the CFIA says the claim can be used “when the last substantial transformation of the product occurred in Canada,” which can include “some” ingredients from other countries.

The CFIA adds that for the “Made in Canada” claim to be used, it must be accompanied by a “qualifying statement,” which indicates whether the product is made up of imported ingredients, or a combination of imported and domestic ingredients.

In the oatmeal cookie example, the CFIA says if the cookies are produced in Canada from imported flour, oatmeal, sugar and shortening, they can be labelled or advertised as “Made in Canada from imported ingredients.”

The CFIA’s criteria mean the “Product of Canada” label is more often the most Canadian choice for consumers, but understanding the differences between the two claims may still be confusing.

A survey study from last year found that among participants who claimed they didn’t know the difference between “Made in Canada” and “Product of Canada,” 37 per cent said they would prefer to buy a “Made in Canada” product, while 23 per cent would choose a “Product of Canada” and another 40 per cent reported no preference.

When the definitions of each were explained, however, 12 per cent said they would choose a “Made in Canada” product, while 66 per cent chose a “Product of Canada,” and those with no preference dropped to 21 per cent.

— with a file from Global’s Sean Previl