The Competition Bureau says that upscale Canadian-based coat maker Moose Knuckles uses “false or misleading” Made In Canada claims – and should stop doing it.

The bureau is seeking a $4-million penalty from the company and “restitution for consumers." A spokesman said the amount of restitution will be determined at a later date.

The bureau said on Wednesday it has filed an application with the Competition Tribunal alleging that the Moose Knuckles parkas are mostly manufactured in Vietnam and elsewhere in Asia.

The bureau accuses the Winnipeg-based company of only doing the finishing touches to the jackets, such as adding the trim, zippers and snaps, in Canada.

The agency is seeking an end to what it says are deceptive made-in-Canada representations, an administrative financial penalty and “restitution” for consumers.

The jackets sell for about $595 to more than $1,000, and part of their allure is their made-in-Canada label.

“Consumers are willing to pay a premium for “Made in Canada” products, and manufacturers know this,” said Matthew Boswell, senior deputy commissioner of competition at the bureau. “The bureau has taken action in order to ensure that consumers – and retailers – have the correct information to allow them to make informed purchases.”

In a category dominated by Canada Goose, Moose Knuckles sells pricey parkas and other jackets trimmed with farmed fox fur, gaining a following among well-heeled consumers in North America and beyond.

According to bureau guidelines for “Made in Canada”, at least 51 per cent of “direct” costs of producing or manufacturing goods must be incurred in Canada.

And the “Made in Canada” representation must be accompanied by a qualifying statement, such as “Made in Canada with imported parts” or “Made in Canada with domestic and imported parts.” This could include more specific information such as “Made in Canada with 60 per cent Canadan content and 40 per cent imported content,” the bureau rules says.