In October, National Observer received a tip that Canadian clothing retailer Kit and Ace was selling toques made with fur from a species of Asian dog. Here's what our investigation found.

“I can guarantee it’s raccoon fur (not dog),” reads an email from a Kit and Ace customer service agent. The statement is in response to an inquiry about the Canadian retailer’s new Berkeley toque, which has a fur pompom labelled "100 per cent real Asiatic raccoon.”

“It is raccoon fur,” reads another email from a different Kit and Ace agent in response to the same query. In both cases, the agents believed they were addressing customers, rather than a National Observer reporter.

A quick look online however, reveals that ‘Asiatic raccoon’ is the fur industry’s name for the raccoon dog (pictured right), a member of the canine family that resembles a raccoon, but is not genetically related.

Selling raccoon dog fur isn’t illegal in Canada, nor is its label, Asiatic raccoon. But it's a problem, scientists say, when customers are told the fur is from a raccoon — as the animal is actually a type of canine.

Unlike most other Western countries, Canada’s labelling laws make disclosure of the presence of fur—as well as its type and its country of origin— completely up to the discretion of retailers on most apparel including many coats, trims, hats, and other accessories.

For the fashion industry, being open and honest about their products, including fur, is a matter of integrity — a virtue Kit and Ace claims as a foundation of their business.

While the company did label the Berkeley toque as fur, an email leaked by a Kit and Ace whistleblower reveals misleading instructions to staff about the raccoon dog, its name and family classification.