"She didn't want other children laughing at her. No kid would, really," Johnson told CBC News on Wednesday.
"She practically refused to wear the jacket, because it was embarrassing. At age 5, she knew it wasn't right."
The garment, though, boasts an embroidered image of Winnie the Pooh, a trademarked image owned by Disney.
Johnson's daughter-in-law paid $69.99 plus tax for the snowsuit, which the label indicates was made in China.
Although the snowsuit was sold at a price that doesn't suggest a knockoff, Johnson said the family is wondering if the label is a fake or a mistake.
The snowsuit featured an embroidered likeness of Winnie-the-Pooh, but not the character's name.
"I consider myself a very alert consumer," she said. "It bothers me … I don't know how it got through. You wouldn't buy a shirt from adidas that was misspelled and pay full price for it, would you?" Johnson asked.
"You can hardly believe what you see sometimes."
The snowsuit was purchased in Gander at a store belonging to the Riff's department store chain.
The local manager declined an interview, but said the shop halted sales when the suspicious labels were pointed out.
Johnson, who found the erroneous labels on other snowsuits at the same store, said her family is relieved they won't be stuck with the snowsuit.
"They said no problem. They're going to give us a refund," she said.
Johnson said she would still like to know how the suits were manufactured, whether they passed inspection and whether the suits will be recalled.
No one from Riff's head office was available to comment.