The culprit behind Loblaw’s $10K fine for promoting imported food as Canadian? Broccoli slaw

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The Canadian Food Inspection Agency (CFIA) has provided CBC News with new details about the $10,000 fine it issued to a Loblaw-owned Superstore last month for promoting imported food as Canadian.

The federal food regulator said the mislabelled product was a Loblaw-owned brand: President’s Choice broccoli slaw, a version of coleslaw made with shredded broccoli.

The CFIA said a Toronto Superstore promoted the bags of salad with “maple leaf advertising decals” and a “Product of Canada” statement on an in-store shelf tag, even though its packaging stated, “Product of USA.”

For a food product to be labelled “Product of Canada,” it must be entirely or almost entirely created in Canada, according to the CFIA.

WATCH | Grocers not fined for mislabelling products as Canadian:

Grocers not fined for mislabelling products as Canadian

Despite multiple customer complaints, none of the major grocery chains have been fined for promoting imported products as Canadian — a process that’s become known as maple washing.

Grocers have capitalized on a buy-Canadian movement that gained momentum early last year — in response to U.S. President Donald Trump’s tariff war and comments about Canada becoming the 51st state — by using Canadian branding in their stores to promote home-grown products.

But both the CFIA and CBC News have uncovered a number of cases where big grocers have promoted imported food as having Canadian content, a practice that’s become known as “maple washing.”

So far, the CFIA has only announced the one Superstore fine.

Last week, CBC News asked the agency why Loblaw rival Sobeys had faced no fines following a CFIA investigation last April into a mislabelling case that took four months to resolve.

In that case, a Sobeys-owned Safeway store just outside Edmonton advertised house brand Compliments avocado oil with in-store signage that included a red maple leaf and the statement, “Made in Canada.” But the small print on the bottle revealed the product was imported.

On Wednesday, the CFIA hinted Sobeys could still be fined in this case. The agency stated in an email that although the grocer corrected the problem, “the file is ongoing to determine if further action is appropriate.”

Sobeys avocado oil on display. In-store signage says it’s a 'Product of Canada,' but the bottle says it was an imported product. — The Compliments avocado oil found by Sheila Young at a Sobeys-owned Safeway near Edmonton. The shelf signage says, ‘Product of Canada,’ but the bottle says it’s an imported product. (Submitted by Sheila Young)

The CFIA learned about the mislabelled oil after Sheila Young, who lives just outside Edmonton, complained to the agency about the product.

She said she’s stumped why the agency is taking so long to decide if it will issue a fine.

“Ten months seems too long to have not reached a conclusion. So, that is disheartening,” said Young. “I’d love to know why they’re struggling with this file.”

Is a $10K fine high enough?

After reporting on the $10,000 Superstore fine last week, CBC News heard from several shoppers who complained the penalty was too low for Loblaw, Canada’s largest grocer.

On Wednesday, Loblaw posted $16.38 billion in retail revenue for the quarter.

“Ten-thousand is drop in the bucket for them. That’s not going to hurt them financially,” said Brenda Nicholls of Hamilton, Ont., a shopper who’s says she’s committed to the buy-Canadian movement.

She suggested major grocers caught promoting foreign goods as Canadian should face fines starting at $100,000.

“The food inspection agency needs to send a very strong message so that this behaviour won’t be repeated,” Nicholls said.

The signage next to the asparagus says it’s "Prepared in Canada" and a “Product of Canada,” but the product’s tag says the product was "distributed by” a U.S. company and “Produce of Peru.” — A shopper found this asparagus at a Loblaw-owned No Frills in August. The signage says it’s ‘Prepared in Canada’ and a ‘Product of Canada,’ but the product’s tag says it was ‘distributed by’ a U.S. company and that it’s a ‘Produce of Peru.’ (Submitted by Brenda Nicholls)

However, six-figure fines would require a change in the rules. Currently, the CFIA can only impose penalties of up to $15,000 per offence.

Loblaw and Sobeys have each told CBC News that they strive for accurate country-of-origin signage, but noted the task is challenging when dealing with large inventory.