Canada Goose stock drops after FTC ethical claims probe
(The Star Fashion & Style)

A U.S. Federal Trade Commission probe into allegations of false or misleading statements made by Canada Goose has left the company on the defensive, with some saying the allegations are hurting the luxury outerwear maker’s stock performance.Shares in Canada Goose Holdings Inc. rebounded modestly Tuesday after shedding nearly 10 per cent of their value over the previous three trading sessions on concerns about U.S.-China trade tensions and reports that the Toronto-based company revised ethical claims about the sourcing of fur and down used in its parkas.The stock decline coincided with a New York Post report about the findings of a year-long FTC inquiry into marketing claims about trapping and down practices.The stock price fell 4.7 per cent Thursday, the day the Post reported the company had removed some references to ethical treatment of animals from its promotional materials, and continued to decline in trading Friday.The now-concluded probe into allegations of false or misleading statements in promotional materials regarding the treatment of animals in its supply chain did not result in enforcement action because of what the FTC in a letter to the company’s legal counsel called the “prompt and corrective action taken by Canada Goose.�The June 17 letter also said the FTC was “concerned that Canada Goose may have made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel.�According to People for the Ethical Treatment of Animals, which filed the initial complaint, the action included removal from the Canada Goose website of assertions that it trapped coyotes only in areas where the animals have become abundant and a pest. A video showing where the company sources goose down for its parkas was also removed.PETA said a Canada Goose statement indicating that the company would “ensure� ethical treatment of animals has also been replaced by wording vowing the ...