Moose Knuckles, Competition Bureau reach deal over made-in-Canada concerns

High-end winter jacket maker Moose Knuckles and the Competition Bureau have reached a deal over concerns about made-in-Canada claims in the company's advertising and labelling of some of its parkas.

The deal, which was reached through mediation, will see Montreal-based Moose Knuckles donate $750,000 over five years to Canadian charities, such as those that provide winter jackets to children in need.

Moose Knuckles has also agreed to make it clearer that some of its coats are made with Canadian and imported components, the Competition Bureau said.

The company will also add operations at its Canadian factories, and implement an internal compliance program to ensure that advertising and labelling issues do not occur again.

"We've basically been exonerated," Stern told CBC News. "The bureau took a position against us on limited information, and as soon as they informed themselves they realised this was a file that should be settled in a good way."

The executive said the labels on coats were always in compliance with the rules and included disclaimer that they were made with Canadian and imported material.

Stern did acknowledge that the made-in-Canada claim on the company's website and in some advertising did not include a disclaimer. He said the company will now add disclaimer everywhere they make the claim.

Back in April, the Competition Bureau said it was going to take action against what it calls "deceptive marketing practices by Moose Knuckles."

The parkas were marketed as made in Canada when they are mostly manufactured in Vietnam and elsewhere in Asia, the bureau said in a statement at the time. A bureau application to the Competition Tribunal alleged that only the finishing touches to the jackets, such as adding the trim, zippers and snaps, were done in Canada.

At the time, Moose Knuckles president Ayal Twik said the company "vigorously rejects" the allegations made by the Competition Bureau regarding the Canadian content of its products and the company's operations in Canada.