The law is based around impersonations of government personnel, but our government is also concerned with the protection of it's citizens rights and freedoms. The middle ground is that we cannot own/wear actual military issue gear (FTU's with a valid VIN number, C-7 rifles, C1 rifles(FAL's), etc etc. However in some cases there are exceptions, such as a few years ago when they phased out the a bunch of the enfeilds (were being used up in the north for cold weather animal protection), and they were offered for sale to the Canadian public. The uniforms are done in a similar way, they are dumped en-mass for whatever reason, and the barcode/ID on the tag is scanned, the uniform part marked as NS (non serviceable) and they are disposed of/sold.

Also unless you're trying the stolen valor thing or are an active service member, nobody gives a shit what you're wearing. The old OD greens are a reasonably common sight in public (Cheap workclothes/coats) and Cadpat is usually around at paintball/airsoft events. Real cadpat is expensive and hard to come by though, easier to find is MARPAT, the cadets were actually originally going to get a nearly identical version to replace our OD's, but when MARPAT became a thing they scrapped it, and there is a lot of the stuff leaking onto the market right now.

As per what some people have been saying about CF uniforms being IR proof/magical or some other keyboard ninja bs, it's not true. Some uniform pieces have a Velcro patch which can be folded up/off and reveal an IR reflective piece underneath, thats about it.

Stolen stuff is illegal to own, but shit gets stolen constantly and nobody is kicking down doors looking for it, and nobody checks the codes. Only time I've heard of people being busted for it is an MP using it as an exclude to bring someone in, and cadets trying to steal stuff and having it found.

Source: Army cadet of 6 years, spent a summer working in a supply depot on base.