The country fined the clothing maker's Chinese unit $71,000 USD over its statement saying Canada Goose uses "the warmest material from Hutterite" in reference to a Western religious community that produces high-quality goose down, according to Canadian news outlet Baystreet.
Shares for Canada Goose Holdings were down closed at $37.94 — down 5.88% from the previous day.
Jackets hang in the showroom of the Canada Goose factory in Toronto, Ontario, Canada, Feb. 23, 2018. (REUTERS/Mark Blinch)
The Chinese State Council said Canada Goose deceived customers with the phrase because most of their products are made from other materials and the company had therefore deceived the country's advertising rules, Baystreet reported.
The company did not immediately respond to an inquiry FOX Business.
The move comes as tensions between China and Western nations, including the U.S. and Canada, grow amid increasing pressure for China to put an end to human rights abuses in the country and stop the flow of illicit drugs from China into Western nations, among other requests.