New labels and geographical indications: what implications for the marketing of your food products in Canada?

2018-05-14

NEWLABELSANDGEOGRAPHICALINDICATIONS:
WHATIMPLICATIONSFORTHEMARKETINGOFYOURFOOD
PRODUCTSINCANADA?

GENEVIÈVEHALLÉ-DÉSILETS*
ROBIC,LLP
LAWYERS,PATENTANDTRADEMARKAGENTS

Innovation,authenticity,differentiation…thesearejustsomeofthefoodindustry
stakeholders’concernswithregardstothemarketingoftheirproducts.However,these
stakeholdersmustalsoremainawareoflegislativeandregulatoryrequirementsinthis
area.Indeed,significantamendmentshaverecentlybeenmadetotheFoodandDrug
Regulations(“FDR”)1andtheTrade-marksAct(“TMA”)2,amendmentswhichwillcertainly
haveanimpactonthemarketingoffoodproducts.

1.Newlabels

InresponsetoscientificadvancesandchangesinCanadians’foodconsumptionhabits,
theRegulationsAmendingtheFoodandDrugRegulations(NutritionLabelling,Other
LabellingProvisionsandFoodColours)3,whichprimarilyhastheeffectoffacilitatingthe
understandinganduseoftheNutritionFactsTableandthelistofingredientsappearing
onfoodlabels,hasrecentlybeenadoptedbyHealthCanada.Thisregulationcameinto
effectonDecember14,2016,butfoodindustrystakeholdersareentitledtoafive(5)year
transitionperiod(untilDecember14,2021)tocomplywithsuchregulation(exceptforthe
requirementsconcerningfoodcolourspecifications).

Inparticular,thefollowingchangeshavebeenmadetotheNutritionFactsTable:
-thepercentagesofrecommendeddailyvaluesforconsumptionbyCanadianshave
beenupdated,inparticulartohelpconsumersidentifyproductsthatarehighin
sugars.
-theportionsizesshownarenolongerlefttothediscretionofthemanufacturers;in
ordertofacilitatecomparisonsbetweensimilarfoodproductsandtomakethe
portionsshownmoreconsistentwiththeamountoffoodusuallyconsumedonone
occasion,theindicatedportionshouldnowbebasedonthereferencequantityof

©CIPS,2018.*GenevièveHallé-DésiletsisalawyerforROBIC,LLP,afirmoflawyers,patentandtrademarkagents.1C.R.C.1978,c.8702R.S.C.1985,c.T-133SOR/2016-305

ROBIC,LLPMONTREALQUEBECLAWYERS,PATENTAGENTSANDTRADEMARKAGENTS1001VictoriaSquare,BlocE–8thfloor2875LaurierBoulevard,Delta-3–Suite700Montreal(Quebec)CanadaH2Z2B7Quebec(Quebec)CanadaG1V2M2ROBIC.COMTel:514987-6242Tel:418653-1888INFO@ROBIC.COM

thefoodproductconcerned(thereferencequantitiesareestablishedbyHealth
CanadaandmaybefoundintheFDR;forexample,thereferencequantityformilk
is250mL).
-thelistofingredientshasundergonestructuralchangestogroupsugaringredients
andtodesignatefoodcoloursbytheircommonname.

HealthCanadaalsoproposestoestablishnutritionlabellingrequirementsonthefrontof
thepackagingoffoodshighinsodium,sugarsand/orsaturatedfats.Forexample,alogo
(tobechosenbyHealthCanadainthenearfuture)inwhich“élevéen/highin”willappear
mustbedisplayedonthefrontofthepackageofafoodproductcontainingfifteenpercent
(15%)ormore(orthirtypercent(30%)ormoreforprepackagedmeals)ofthe
recommendeddailyvalueofsodium,sugarsand/orsaturatedfats.

2.Newgeographicalindications

TheAnActtoimplementtheComprehensiveEconomicandTradeAgreementbetween
CanadaandtheEuropeanUnionanditsMemberStatesandtoprovideforcertainother
measures4,whichhadtheeffectofamendingthegeographicalindicationsprovisionsof
theTMA,cameintoforceonSeptember21,2017.

Assuch,theconceptof“geographicalindications”nowalsocoversfoodandagricultural
productsofacategorylistedinthescheduleoftheTMAasoriginatingfromtheterritory
ofamemberoftheWorldTradeOrganization,whereaquality,reputationorother
characteristicofthedesignatedproductisessentiallyattributedtothatgeographicalorigin.
Beforetheentryintoforceofthesenewprovisions,theapplicationoftheconceptof
geographicalindicationswaslimitedtowinesandspirits.

Inprinciple,itisthereforeprohibitedtoadoptortouse,asatrade-markorotherwise,a
protectedgeographicalindicationdesignatingafoodofacategorylistedintheschedule
oftheTMA(oranytrade-markcausingconfusionwithsuchanindication),forafood
belongingtothesamecategory,whoseplaceoforiginisnotintheterritorycoveredby
theprotectedgeographicalindication,orifthatfoodproducthasnotbeenmanufactured
inaccordancewiththelawapplicabletothatterritory.UndertheTMA,anindication
designatingafoodproductcreatesconfusionwithatrade-markwheretheuseofboth
expressionsinthesameregioncouldleadtotheconclusionthattheproductdesignated
bytheindicationisfromthesamesourceasthegoodsandservicescoveredbythetrade-
mark.

Someexamplesofthenewgeographicalindicationsrecognizedforfoodandagricultural
productssinceSeptember21,2017includeFeta,Gorgonzola,RoquefortandBayonne
Ham,aswellasEspelettepeppersandlavenderessentialoilfromHaute-Provence.Some
names,alreadyconsideredtoogenerictobeusedasageographicalindication,arealso
4S.C.2017,c.6.

includedinthenewprovisionsoftheTMA(forexample,theuseofthenamesParmesan
andBlackForestHamwillremainpermitted).

3.Conclusion

StakeholdersinthefoodindustryhaveuntilDecember2021tocomplywithmostofthe
newrequirementsoftheFDR,allowingthemtospreadovertimetheinevitablecostsof
creatingcompliantlabels.ItisimportanttokeepinmindthatanoffenceundertheFDR
couldnotonlyresultinafineofupto$250,000,butalsothewithdrawalorrecallofa
product,ifitisdeterminedthatcompliancecouldlikelyhaveasignificantimpactonthe
healthofCanadianconsumers.Suchawithdrawalorrecall,inadditiontobeingpotentially
veryexpensiveforacompany,maycreatepermanentdamagetoabrandimage!

NewgeographicalindicationsrecognizedbytheTMAshouldalsobereviewedbyfood
marketers,sinceitisnowforbiddentouseatrademarkortradenamethatincludesa
recognizedgeographicalindicationorthatmaycauseconfusionwithsuchanindication,
inconnectionwithafoodoragriculturalproduct,exceptwheresuchproductoriginates
fromthegeographicalareacoveredbythegeographicalindicationandfulfilsthecriteria
requiredfortheuseofthatindicationinrelationtothetypeofproductconcerned.

Formoreinformationonthemeasurestobetakentocomplywiththelegislativeand
regulatoryrequirementsforfoodmarketingandgeographicalindications,donothesitate
tocontactamemberofourteam.