Luxury parka maker, Canada Goose Holdings Inc., has become the latest foreign brand to be targeted by Chinese regulators. The company has been fined for allegedly misleading consumers through its various advertisements.
Shanghai’s market regulator fined the parka maker 450,000 yuan ($71,000) for claiming that it uses “the warmest material from Hutterite,” which is a western religious community that produces high-quality goose down, when, in fact, it has been using various other materials across its products.
Furthermore, Canada Goose failed to obey Chinese advertisement laws, according to the Economic Daily newspaper.
“Canada Goose probably hasn’t carefully studied China’s law and ignores changes in the Chinese market,” said Economic Daily. “
The moon isn’t rounder in foreign countries, and foreign down jackets aren’t warmer.”
The accusations come at a time when the Chinese market continues to play a critical and active role in driving revenue for global brands, while political tensions continue to rise between western and eastern countries. That is especially true for China’s relationship with Canada, which has turned sour since executive Meng Wanzhou of Huawei Technologies Co. was detained by Ottawa back in December 2018, just days before Canadians Michael Kovrig and Michael Spavor were taken into custody by the Chinese government and later accused of spying. Last month, Spavor was sentenced to 11 years in prison.
The rising tension and potential boycotts after Meng’s detention in 2018 ultimately led Canada Goose to delay its flagship store opening in Beijing.