Cannabis marketing rules still hazy post-legalization
Despite strict rules limiting the promotion of now legal recreational pot now in effect, cannabis promotions continue to pop up amid loopholes and a lack of clarity on how the legislation’s grey areas should be applied.
Nearly one month on since legalization, there is disagreement in the sector on murky portions of the Cannabis Act governing marketing, with some licensed producers taking a more aggressive approach and others holding back.
“The fact that you aren’t seeing that an overwhelming wave yet of those kinds of tactics, to me, demonstrates that there is still uncertainty,” said Rebecca Brown, founder of Crowns Agency, a Toronto-based marketing consultancy focused on the marijuana industry.
Canada legalized pot for recreational use on Oct. 17, when strict guidelines governing the plant’s promotion came into force.
The blitz of cannabis industry billboards, sponsored concerts and pop-up information kiosks seen ahead of legalization have abated, but marijuana brands can be seen on taxi cabs or on social media - which may or may not run afoul of the law depending on interpretation.
The Cannabis Act prohibits promotion of cannabis to young people and ads in places where it can be seen by those under the age of 18.
Also barred is the use of endorsements or a depiction of a person, character or animal or marketing which presents “a way of life such as one that includes glamour, recreation, excitement, vitality, risk or daring.”
Some companies have run afoul of this particular clause in the Act, Health Canada says.
Since legalization, the health agency has reached out to seven regulated parties “to promote an understanding of the new prohibitions relating to the promotion of cannabis... and to bring specific concerns to their attention,” said agency spokesman Eric Morissette.
All regulated parties contacted have addressed, or are in the process of, addressing the issues raised, Health Canada added.
The government agency would not detail what portions of the Act were violated, but did say “for example” it raised concerns about “promotion using the depiction of persons and promotions that present a product or brand that associates it with a particular way of life, such as a glamorous or recreational lifestyle.”
Health Canada said it would not identify the parties involved “provided that they have acted in good faith and taken the necessary corrective measures.”
Still, government guidelines on pot promotion also has several exceptions and clauses which, some say, are open to interpretation.
One exception allows for promotion using a “brand element” on a “thing that is not cannabis or a cannabis accessory,” if that thing isn’t associated with young persons or “vitality.”