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Winter jacket maker Moose Knuckles has reached a deal with the Competition Bureau regarding concerns over its advertising and labelling of certain parkas that are promoted as made-in-Canada.

Under the agreement, reached through mediation, the company has agreed to donate $750,000 over five years to charities in Canada, such as those that provide winter coats to children in need.

In addition, Moose Knuckles has agreed to make it clearer that certain parkas are made with Canadian and imported components.

The company will also add operations at its Canadian factories and implement an internal compliance program to ensure that advertising and labelling issues do not occur again.

The Competition Bureau had alleged winter coats marketed as made-in-Canada were mostly made in Vietnam and elsewhere in Asia.

The bureau alleged that only the finishing touches to the jackets, such as the trim, zippers and snaps, are done in Canada, something that Moose Knuckles "vigorously" rejected.

Moose Knuckles said the agreement will secure the continued employment of hundreds of skilled Canadian workers.

The company said it appreciates the guidance it has received from the Competition Bureau to improve the information available to consumers and has reaffirmed its implementation of the regulator's made-in-Canada guidelines.

"Our brand may be cheeky, but we take seriously our commitment to Canadian manufacturing and working within the framework outlined by the Competition Bureau in its guidelines," Noah Stern, CEO of Moose International Inc., said in a statement.