RCC Issues Updated Labelling Guidance for Product Claims

The Retail Council of Canada (RCC) has released new guidance on country-of-origin labelling, providing retailers, particularly in the furniture sector, with clearer benchmarks for ‘Product of Canada’ and ‘Made in Canada’ claims.

The revised standards align with Competition Bureau regulations and establish two distinct labelling categories. ‘Product of Canada’ applies to items that are made almost entirely from Canadian materials and labour. To qualify, virtually all inputs — wood, hardware, textiles and manufacturing — must originate within Canada.

The ‘Made in Canada’ designation allows for more flexibility, requiring that at least 51 per cent of the total direct costs covering materials, labour and overhead be Canadian. Additionally, the product’s final substantial transformation must occur in Canada. This is particularly significant for furniture retailers who may import specific components, such as specialty fabrics or metal fixtures, while conducting final assembly domestically.

To avoid misleading consumers, RCC advises businesses to add qualifying language like “Made in Canada with imported materials” when imported inputs are used. This ensures alignment with federal labelling requirements and supports transparency.

Further, the organization encourages companies to maintain detailed documentation of sourcing and cost structures, and to monitor any supplier changes that could affect labelling eligibility.

Clear, accurate labelling not only supports regulatory compliance but also helps retailers uphold consumer trust and promote Canadian craftsmanship. With these changes, RCC aims to support honest marketing practices and provide consumers with meaningful origin information at point of sale.