Luxury and fashion—Canada—Q&A guide

The following IP practice note provides comprehensive and up to date legal information covering:

  • Luxury and fashion—Canada—Q&A guide
  • 1. What is the current state of the luxury fashion market in your jurisdiction?
  • 2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?
  • 3. What legal framework governs distribution and agency agreements for fashion goods?
  • 4. What are the most commonly used distribution and agency structures for fashion goods, and what contractual terms and provisions usually apply?
  • 5. Do any special import and export rules and restrictions apply to fashion goods?
  • 6. What are the requirements and disclosure obligations in relation to corporate social responsibility and sustainability for fashion and luxury brands in your jurisdiction? What due diligence in this regard is advised or required?
  • 7. What occupational health and safety laws should fashion companies be aware of across their supply chains?
  • 8. What legal framework governs the launch of an online fashion marketplace or store?
  • 9. How does e-commerce implicate retailers’ sourcing and distribution arrangements (or other contractual arrangements) in your jurisdiction?
  • More...

Luxury and fashion—Canada—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to luxury and fashion in Canada published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: McCarthy Tétrault LLP—Adam Ship; Carmen Francis; Dana Siddle; Dominic Thérien ; Lara Nathans; Martha Harrison; Michael Scherman; Nicolas Désy; Selina Lee-Andersen; Trevor Lawson; Vincent K.S. Yip

1. What is the current state of the luxury fashion market in your jurisdiction?

Canada has a vibrant luxury market, which includes department store or multi-brand locations (eg, Holt Renfrew, Saks Fifth Avenue), individual apparel and leather goods brands (eg, Chanel, Prada, Gucci, Bottega Veneta, Louis Vuitton), hospitality (eg, Ritz Carlton, St. Regis, Fairmont hotels), automotive and cosmetics and personal care. The luxury market includes not only physical stores and hotels, but also wholesale brand distribution, direct to consumer sales and e-commerce.

As in other jurisdictions, luxury businesses in Canada have been significantly impacted by the covid-19 pandemic and related government orders and restrictions. As well as managing the restrictions on businesses, luxury businesses have had to manage, where applicable, reopening regulations and guidance across various levels of government (federal, provincial and municipal). Another impact of the pandemic has been the acceleration of e-commerce and brands selling direct to consumer.

Particularly in Canada's major cities (such as Vancouver, Toronto, Montreal), we continue to see new entrants to

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