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EP64 - Deceptive Marketing Exposed with Josephine Palumbo
Episode 64
Wednesday, 25 March, 2026
In this episode of CMA Connect, Alison Simpson, CEO of the CMA, sits down with Josephine Palumbo, Deputy Commissioner for the Deceptive Marketing Practices Directorate at the Competition Bureau of Canada, to decode Canadian origin claims and emerging fraud threats. Josephine explains the critical distinctions between "Made in Canada" and "Product of Canada," how tariffs impact threshold calculations, and practical guidance for avoiding maple washing. The conversation expands to the Bureau's Fraud Prevention Month focus, including the alarming rise of AI-generated scams using deep fakes to impersonate government officials. 00:00:01.720 — 00:00:20.280 · Presenter Welcome to CMA Connect, Canada's marketing podcast, where industry experts discuss how marketers must manage the tectonic shifts that will change how brands and businesses are built for tomorrow, while also delivering on today's business needs. With your host, CMA CEO Alison Simpson. 00:00:22.880 — 00:02:16.740 · Alison In an era of renewed Canadian patriotism and heightened awareness of global supply chains, consumers are absolutely paying closer attention than ever to where their products are coming from. With ongoing tariff discussions, a growing desire to support domestic industries, Made in Canada and Product of Canada claims have become more than just marketing messages. They are promises that Canadians absolutely expect businesses to keep. For this episode, I'm thrilled to welcome Josephine Palumbo, Deputy Commissioner for the Deceptive Marketing Practices Directorate at the Competition Bureau of Canada. In her pivotal role, Josephine leads efforts to detect, investigate, and deter false or misleading representations and deceptive marketing practices across Canada. With over 25 years of experience at the Department of Justice and Competition Bureau, including significant work as Deputy Executive Director and Senior Litigation Counsel. Josephine has been at the forefront of major enforcement actions involving companies like Amazon, Ticketmaster and Volkswagen. Josephine expertise extends globally. She served as president of the International Consumer Protection and Enforcement Network in 2020, representing Canada among over 65 protection agencies worldwide. Her directorate's mandate includes enforcement under the Competition Act, Consumer Packaging and Labeling Act, the Precious Metals Marketing Act, and Textile Labeling Act, which gives her comprehensive oversight of marketing claims that matter the most to Canadian consumers. So as we navigate an increasingly complex marketplace where maple washing and misleading origin claims can absolutely undermine consumer trust. Josephine's insights into what constitutes truthful advertising, along with the real world consequences of getting it wrong, have never been more relevant for Canadian marketers, so I am absolutely thrilled to welcome Josephine. It is a pleasure to host you on CMA Connect, and I'm really looking forward to our conversation. 00:02:16.780 — 00:02:20.780 · Josephine I'm so glad to be here, Alison. I'm looking forward to our talk. 00:02:20.940 — 00:02:44.220 · Alison We're going to cover a lot of hot topics that are crucial and important to marketers in Canada and also Canadians, so I know we will have a rapt audience. So, Josephine, let's start with why Made in Canada and Product of Canada claims matter so much to both consumers and businesses. Obviously, with renewed Canadian patriotism at the forefront of everyone's mind, how does today's environment compare to what you've seen historically? 00:02:44.260 — 00:03:53.790 · Josephine Well, let me start by saying that in the past, country of origin claims may not have been top of mind for most consumers, but today, Alison, Canadians are far more focused on transparency, on authenticity and knowing where their products truly come from. There are many factors driving this trend today, and I can list some of them, including national pride and that desire to support Canadian made goods. The commitment to support the Canadian job market and local industry's concerns about the economy and environmental impacts of purchasing decisions, and the belief that Canadian made products are held to higher standards of quality for businesses. I would say honesty and clearly representing product origin builds consumer trust and helps them steer clear of legal complications, which is always a good thing. On the other hand, misleading claims risk harming consumers, their fair competitors and the wider market and could result in enforcement under the Competition Act and the other relevant legislation when representations are false or misleading. 00:03:53.830 — 00:04:31.240 · Alison That's very helpful, and it's really rewarding in many ways to hear that Canadians, and we've seen this in other research too, Canadians through the tariffs, through the challenging political and economic times, are really embracing Made in Canada and wanting to give back to the local businesses and brands and support our local economy as well. So there's lots of encouraging reasons for the renewed patriotism that's hopefully having a positive impact on Canada's GDP as well. Josephine: Absolutely. Alison: Now, many people don't realize that there's quite a significant distinction between a Made in Canada claim and a Product of Canada claim. Can you explain the difference and what businesses need to know? 00:04:31.280 — 00:06:27.660 · Josephine Sure. I would say that the distinctions are significant, and they're clearly laid out in the Competition Bureau's guidelines that have been updated in March of 2025, so last year. So let me start. And it's a little technical. So Product of Canada is what I refer to as the gold standard. It means virtually all, at least 98% of the direct production costs, including input or materials and labor, are from Canada. This threshold exists to protect consumers from being misled by claims that imply total Canadian origin. On the other side, we have Made in Canada, which indicates that the majority or 51% or more of the direct costs were Canadian, and this type of claim should be accompanied by a qualifying statement, such as Made in Canada from domestic and imported parts to accurately inform consumers. I should say that both Product of Canada and Made in Canada representations, the product's last substantial transformation occurs in Canada, and that is the product comes into being in Canada. It isn't merely assembled or labeled or packaged here, it is made into something meaningfully new. And here, Alison, let me just say, for businesses, it's essential to review the cost breakdowns regularly to ensure compliance with these thresholds, especially if sourcing changes are occurring. We at the Competition Bureau, we evaluate these claims based not only on the literal meaning of marketing materials, but also on how consumers might interpret such claims. So we would be looking at everything like the words, mix of words, images, illustrations, or even the overall layout. And this is what we call the general impression. So again, it's very important. Clarity and honesty are paramount. 00:06:28.220 — 00:06:39.900 · Alison One of the newer claims I've seen emerging with renewed Canadian patriotism over the last year and a bit is Packaged in Canada. So when might those claims be considered misleading to consumers? 00:06:39.900 — 00:08:17.840 · Josephine So Packaged in Canada for us means like a product arrived mostly finished from another country and only its packaging was added locally. This claim, we would say, could be misleading to consumers if not clearly explained. So the Bureau again encourages the use of qualified claims where the information provided is accurate, relevant and useful. Let me say that the Bureau again, it looks at not only the words, but the whole concept, the general impression created. Sometimes businesses don't realize or understand this and think that as long as they are truthful, that should be good enough and that is not always the case. Again, the general impression has to be taken into consideration. For example, one case that we litigated, well, we didn't litigate, but we settled this case, and that was in 2016. So the Bureau investigated Moose Knuckles for concerns relating to advertising and labeling of some of its parkas as Made in Canada. And here, Alison, the Bureau found some Moose Knuckle parkas were marketed as Canadian- made, despite being mostly manufactured elsewhere, only with the finishing touches to the jackets being made here in Canada, like adding the trim or the zipper and the snaps, those were done in Canada. And with the Competition Bureau, we resolve the matter with the company, who agreed to donate 750,000 over a five year period to Canadian charities, including those providing winter coats to children in need. The company also committed to clearly labeling and advertising, making it explicit when products are made with both Canadian and imported parts. 00:08:17.920 — 00:08:52.770 · Alison That's a great example that speaks to the importance of being fair and truthful to Canadians and how we're marketing, but also the important consequences that businesses will and should pay when they don't follow the letter of the law. Now, for our listeners, we also have an article that we've written around all of the different Made in Canada, Product of Canada claims that elaborates on some of what Josephine has shared. So we will add it into our listener notes for anyone that's listening and wants to read more. We'll have the link in our notes. So, Josephine, what are some of the common mistakes you've seen businesses make when they've made origin claims? 00:08:52.770 — 00:09:46.010 · Josephine So businesses often make mistakes by failing to provide, for example, appropriate qualifying statements using ambiguous language or misunderstanding the threshold requirements that I discussed earlier. A common issue is overstating the Canadian aspect by relying solely on packaging, a minor modifications or last minute assembly that does not meet the threshold for substantial transformation, which I also mentioned earlier. Here's an example I can give you to illustrate this point. So consider a situation where the t-shirt is imported into Canada, and then the business prints an image on it. So this last edition of the image is not a substantial transformation. It was a t-shirt before and it is still a t-shirt after the image was added. Therefore, Printed in Canada or Designed in Canada would be more appropriate in that circumstance. 00:09:46.130 — 00:09:58.300 · Alison That's a very helpful example. Can you walk us through how the current tariff situation impacts the threshold calculation requirements for these claims, and how you take into account both production and manufacturing costs? 00:09:58.540 — 00:11:07.030 · Josephine Yes, that's a really important question, Alison. First, we need to understand that tariffs on imported materials should be included in the cost of non-Canadian content used in the production or manufacturing of products in Canada. Next, we need to know that tariffs can have a direct impact on the costs associated with imported materials, which in turn, of course, may affect the calculation of that Canadian content that we discussed earlier. When tariffs rise, the cost of those imported goods goes up as well, potentially lowering the overall percentage of Canadian direct costs in the finished product. So here I would say businesses should track and recalculate the production costs whenever tariff rates change. Otherwise, a product that previously met the threshold for the Made in Canada or Product of Canada might fall below that line, rendering the claim potentially false or misleading. So we as a law enforcement agency, expect businesses to proactively monitor these changes and adjust their origin claims and that any accompanying qualifying statements so that they do not inadvertently mislead consumers. 00:11:07.070 — 00:11:22.350 · Alison Now, we've talked a lot about the business side of the claim, so I'd like to switch gears a little bit and ask you what advice do you have for Canadians to protect themselves from false or misleading origin claims? And what should they do if they suspect a case of maple washing? 00:11:22.430 — 00:12:33.120 · Josephine Well, here, let me say that consumers play a key role in holding the marketplace accountable. So in order to be able to identify that something is wrong, one needs to know what is right. And we therefore encourage consumers, just like businesses and advertisers, to obtain an understanding of the meaning of the relevant terms like Product of Canada and Made in Canada. I would encourage consumers to look at the Bureau's web page on this topic. Information there is written in plain language with accessibility considerations taken into account. I would say scrutinize claims that Made in Canada or maple marketing, especially if details seem vague, or too good to be true. I would also say ask questions about the origin of the product, and seek out companies willing to provide honest and clear answers about sourcing. Consumers can also review product labeling for qualifying statements. If you suspect that there's a deceptive practice, consumers can, of course, file a complaint with the Bureau. Reporting suspicious claims, helps others, and supports a fair, competitive marketplace. So it's really, really important to to report to the Bureau and where appropriate, we will take the necessary enforcement action. 00:12:33.160 — 00:12:52.050 · Alison Now, given the renewed Canadian patriotism, we focused a lot of our conversations so far around Product of Canada and origin claims, but you have a much broader lens, so I'd love you to share what other consumer complaints are top of mind from a marketing perspective, because that's such a valuable and important learning for all of our listeners to understand. 00:12:52.090 — 00:13:52.060 · Josephine Happy to share some additional areas of interest and focus for the Bureau. Alongside the Made in Canada claims, Canadians we know are becoming increasingly concerned about misleading pricing tactics such as drip pricing and incorrect disclosures of ordinary selling price. The Bureau's information centre also frequently receives complaints related to deceptive or misleading environmental claims or greenwashing. Fake online reviews is another area of focus for us. It's important for companies to recognize that consumers expect transparency at every stage, including advertising, sales, warranties and support strategies. I would say that relying on ambiguity or the omission of key details, can undermine consumer trust and may result in legal consequences, so should be avoided. Again, to maintain credibility, businesses should thoroughly review and clearly substantiate their claims while keeping their marketing materials up to date with evolving regulations and consumer expectations. 00:13:52.060 — 00:14:57.790 · Alison And beyond it being the right and legal thing to do. We also know from some CMA research how savvy consumers and Canadians are, and they are absolutely holding brands and businesses accountable to be truthful. And when they feel they can't trust a brand in business, they will desert them. 87% of Canadians, if they have one reason to not feel a business or brand is trustworthy anymore, they will stop being a customer and they will talk about it. So if our listeners need any other motivation and I know they don't, it's in every marketer's best interest to be truthful and authentic in their approach. And all the good marketers that we work with are held by the CMA Code of Ethics, and absolutely don't just do this because it's smart business, but because it's the right thing to do as well. So as a long standing member of the Fraud Prevention Forum, the CMA is actively engaged in this year's campaign and excited that we're now in Fraud Prevention Month and beyond Fraud Prevention Month, we're looking to stay very actively engaged. So what should Canadians and businesses expect from the Competition Bureau, both now in Fraud Prevention Month but also in the months ahead? 00:14:57.830 — 00:17:18.970 · Josephine So as you mentioned, March is Fraud Prevention Month and the Bureau as Co-Chair, alongside the RCMP and the Canadian Anti-Fraud Centre, joins forces with more than 80 partners from the public and private sector across Canada. The aim is to educate and help Canadians and businesses spot and avoid fraud. This year marks the 22nd year of the campaign where people can expect online resources about scams and criminal deceptive marketing. Let me say here that fraud is one of the fastest growing crimes in Canada, but it often goes unnoticed. It's hidden behind convincing technology or in everyday online interactions, and many cases go unreported even though they cause serious harm. And the Bureau, along with its many partners, including the CMA, will be encouraging Canadians to recognize, reject and report fraud. It's important also to say here, Alison, that anyone can be a victim of fraud, individuals, businesses and organizations. And the harm isn't just financial. It can also be emotional and psychological. And that's why fraud awareness must happen year round and Fraud Prevention Month remains vital. It becomes, for us, a national moment of focus that brings attention, partners and momentum all together. So for businesses again, the Bureau will also be sharing best practices, compliance guides and reminders to uphold honest marketing and fair competition. I can say here, and I should add, scams are growing in scale, crossing borders and becoming more convincing through AI such as impersonation, fake investment scams to fake employment scams. And earlier this month, we published a public alert about the growing threat of AI generated government impersonators, including the highest government officials, to our Prime Minister. The piece really explains how scammers are now using deep fakes, clone voices and fake governmental style websites to trick people into giving up their money and their personal information. And the alert basically walks Canadians through the red flags to watch for like unnatural video movements, odd sounding audio or suspicious website URLs and reminds everybody to verify messages through official channels. It's an important update, and I encourage everybody to visit the Bureau's site for full information. 00:17:19.050 — 00:17:32.970 · Alison Josephine, you're so right that the frauds are becoming so much more sophisticated, and absolutely any one of us can be susceptible and taken in by a fraud. What do you think holds Canadians back from reporting it when it happens to them? 00:17:33.170 — 00:18:21.660 · Josephine That's a good question. And, you know, we know from the statistics that only 5 to 10% of frauds get reported to law enforcement, whether it's the Bureau, Police Agencies or the Canadian Anti-Fraud Centre. Having practiced in this area for a while and being part of the campaign, I can tell you it's a number of things. It's sometimes it comes to embarrassment, so the victims don't want to come forward and say that they fell for this scam. Other times, it's about the amount of money they may have lost and it wasn't so huge. So it's not worth taking the effort of reporting to law enforcement. And this is what is absolutely wrong. Because if you don't report to law enforcement, we can't get ahead of it and we can't stop it. So again, the message is to report, report to the Bureau, report to the Canadian Anti-Fraud Centre or to your local police. 00:18:21.780 — 00:18:30.700 · Alison And if it's helpful to our listeners, we can include a link to the alert that you spoke about in the notes to the podcast, so that it's easy for people to access on your site. 00:18:30.740 — 00:18:32.260 · Josephine That'd be great. Thank you. 00:18:32.300 — 00:18:48.310 · Alison Now I end each episode by asking our guest to share one piece of career advice. So with over 25 years in competition law and consumer protection, what wisdom would you share with our listeners who aspire to follow in your footsteps and hold a senior leadership role? 00:18:48.470 — 00:20:31.680 · Josephine Well, thank you very much for asking me that question. If I can offer one humble piece of advice, I would first say build your career on curiosity, not certainty. Marketing and compliance change every five minutes and certainty gets old fast, in my opinion. But curiosity, that keeps you adaptable, relevant, and honestly is a lot more fun. Instead of thinking I should already know this, try, "Oh that's interesting. Tell me more." Be the person who asks why a consumer reacts the way they do, or why a rule is shifting, or why the business wants to try something bold. You don't need to have all the answers. You just need to keep learning and keep that curiosity switched on. Now, professionally, I began my government career clerking with the judges of the Tax Court of Canada. Then I moved to working with the judges of the Federal Court of Appeal to moving to the Department of Justice as a senior litigator, to moving to the Competition Bureau Legal Services Unit as senior executive, and negotiating many deals for the Bureau to where I am today as Deputy Commissioner. It takes curiosity to try new things, face new challenges, and develop new ideas in different settings. It's also important to rely on solid role models whom you can trust and who support you. And let me say that my mother is the source of everything I am. She taught me resilience, compassion, and the importance of serving others, values that underpin any healthy, respectful and inclusive society. It has been an honour and privilege to serve Canadians as a member of the Public Service through the Competition Bureau. 00:20:31.760 — 00:21:10.930 · Alison Thanks so much, Josephine. You're absolutely right, that curiosity over certainty is has always been important, but it is mission critical today when not just the marketing world, but the business world is changing at a pace that we have never seen before. So for any of us to think we have all the answers is just a fool's game. I also love the shout out to your mom. My parents were pivotal in shaping who I am, both professionally and personally, so I can absolutely relate to how important it is to, and how lucky we both are to have had parents to shape us that way. Now, I said that was my last question, but your answer prompted me for another one. Of all the careers you could have pursued I'd love to hear why you pursued a career in public service. 00:21:10.970 — 00:22:36.500 · Josephine For me, it's important to serve the public. And it's, it's a higher calling. And from a side of lucrative, it's not as much lucrative. But there's other things that brought me to the public service. And for me, it's that public calling, that ability to help Canadians, to serve Canadians, to make meaningful changes in different contexts. And, you know, as a young lawyer in the Department of Justice, I was given early opportunities to be part of the Court systems, which maybe in private sector, doesn't happen as quickly. And in the current role that I'm in, I just find it so rewarding to be able to make a difference in society, make a change, help consumers, and in particular, yes, in the world of business, where there's on one side, the business wants to advance in its money investments. On the other side, there's the consumer that's going to depend on the business to be truthful, to be honest. And for me, it's it's been such a rewarding experience to be able to hopefully impart some information to Canadians to help them be more wary of of what is out there. Ask questions. Be smart. I always say knowledge is is your best form of power. So yes, I'm I'm quite pleased with the decisions I've made and I encourage, I encourage anyone who's interested in a career in the public service to really take time to reflect, because it is quite rewarding and quite satisfying in so many ways. 00:22:36.820 — 00:22:47.710 · Alison Josephine, thank you very much. On behalf of our listeners and the Canadian Marketing Association, I'm very pleased that you chose a career in the public service. And thank you for making a very important impact on our country. 00:22:47.750 — 00:23:11.070 · Josephine Well, thank you, Alison, for all the great work that you've been doing at this in the CMA during a remarkable period of growth and forward-looking initiatives. And I know this is maybe one of your last podcasts. So on behalf of the Competition Bureau, myself, my colleagues, I just want to wish you the very best as you head towards this next chapter in the months ahead. So congratulations to you. 00:23:11.350 — 00:23:14.870 · Alison Thank you so much. I really appreciate it. And thanks for a great conversation as always. 00:23:14.870 — 00:23:15.990 · Josephine Thanks, Alison. 00:23:18.270 — 00:23:31.270 · Presenter Thanks for joining us. Be sure to visit theCMA.ca and sign up for your free my CMA account. It's a great way to stay connected and benefit from the latest marketing thought leadership, news and industry trends.
