The federal member for Kennedy, and leader of Katter’s Australian Party, said Chanel had “no right” to profit from Indigenous culture.
“A boomerang is part of our native culture, in this country, our Indigenous peoples’, and someone’s making a quid out of it - they have no right to make a quid out of it,” Mr Katter told SBS World News.
“I’ll say it’s a misrepresentation but, by the same token, it purports to be an Indigenous item and it’s not - it’s just by a French fashion house, it’s anything but an Indigenous Australian item.”
Chanel's wood and resin boomerang, which retails for $1930, drew the ire of critics earlier this week when photos of the "accessory" circulated on social media.
"Having so much fun with my new Chanel boomerang," American make-up artist Jeffree Star tweeted on Tuesday.
The inclusion of the boomerang in the label's spring-summer 2017 collection prompted backlash from Indigenous Australians who said the company had exploited their heritage.
"The label may say 'boomerang' and it bears the same iconic curve, but it comes with no story, no experience and quite frankly, is a slap in the face to all the Indigenous artists actively sharing Aboriginal culture," Madeline Hayman-Reber wrote.
"Have decided to save for the next three years so I can connect with my culture," writer and activist Nayuka Gorrie tweeted.
Chanel has since apologised in response to claims inclusion of the boomerang in its collection were culturally insensitive, however the item remains available to purchase online.
"Chanel is extremely committed to respecting all cultures, and deeply regrets that some may have felt offended,” the brand said in a statement.
In February, Mr Katter moved to criminalise the sale of fake Indigenous art, souvenirs and cultural items by introducing a private bill to parliament.
The Competition and Consumer Amendment (Exploitation of Indigenous Culture Bill) 2017 sought to "prohibit the supply in trade or commerce of anything that includes an Indigenous cultural expression, unless it is done in accordance with the relevant community and artist and the thing is made in Australia".
The bill is currently before the House of Representatives, however Mr Katter indicated he would be taking steps to see the issue put back on the agenda in the near future.
“We most certainly have seen no go forward out of them [the LNP] at all so we have to assume at this stage that we’re going to be getting nowhere with them. In that situation, then we call for a vote … to introduce legislation,” he said.
While the ACCC currently permits the sale of "Aboriginal-style" goods where they are marketed as such, retailers selling products claiming to be "authentic" without having been subjected to any certification process may be liable to "misleading or deceptive conduct" laws where the item has not been produced by a person of Aboriginal descent.
The introduction of the bill followed calls from the Indigenous arts community for amendments to be made to Australian consumer laws ahead of the 2018 Commonwealth Games to be held on the Gold Coast.
Mr Katter said, based on empirical observation, approximately 85 to 95 per cent of what was sold in “tourist shops” in his northern Queensland seat was made overseas.
“Every decent, fair dinkum Australian doesn’t like this, and wants to give a fair go to first Australians,” he said.
“So the fight will go on and, in the next two or three weeks, I think we’ll decide to put it [the legislation] in the House whether they like it or whether they don’t, and they will vote on it whether they like it or whether they don’t.
“Please God, they will agree with that but, at the present moment, that isn’t the case.”
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