Canada: Market and legal data analysis of the cannabis sector

25th July 2024: Canada: Health Canada has released a new webpage with contact information for cannabis and industrial hemp licence holders, applicants and the industry.
11th June 2024: Canada: Health Canada launched a public consultation on amendments to certain cannabis regulations. The proposed amendments aim to reduce regulatory and administrative burdens while maintaining public health and safety objectives under the Cannabis Act. The changes focus on five priority areas: licensing, personnel and physical security measures, production requirements, packaging and labelling requirements, and record-keeping and reporting. Notable proposals include increasing micro-class licence thresholds, allowing the use of ethyl alcohol in certain products, simplifying packaging and labelling rules, and permitting non-human research without a cannabis licence under specific conditions. Additionally, the changes would streamline reporting and record-keeping requirements, such as eliminating the need for certain product notifications and reducing documentation for cannabis destruction. Comments can be submitted until 9th July.
6th June 2024: Canada: Health Canada recalled six lots of softgels and oils distributed by cannabis producer iNaturally Organic due to the “presumed presence” of HHC. These products were sold through authorised retailers in Ontario, British Columbia, Alberta, Manitoba, Saskatchewan and the Yukon, and were also sold to medical clients through Rosebud Productions (Herbal Dispatch), Open Fields Winnipeg and Médicibis. To date, iNaturally Organic has received two adverse reaction reports about these products, and Health Canada has received three adverse reaction reports and one complaint related to them. Health Canada advises consumers to immediately stop using the products and either return them to where they were purchased or dispose of them.
5th June 2024: Canada - New Brunswick: The provincial legislative assembly approved bill 29 to amend the Cannabis Control Act, which aims to increase compliance, reduce the sale of illegal cannabis, and prevent young people from consuming the drug. The proposal will also give more authority to inspectors and increase fines for those operating illegal dispensaries and for their landlords. The amendments come into force on a day or days to be set by proclamation.
4th June 2024: Canada - Alberta: Alberta Gaming, Liquor and Cannabis (AGLC) amended the Cannabis Representative Handbook (CRH) and the Retail Cannabis Store Handbook (RCSH) to allow private label cannabis products. These products, also known as “store brand” or “white label” cannabis products, must be listed at wholesale prices equal to or greater than the lowest general listed products in the same category and type. These products cannot serve as inducements and require AGLC approval, with no arrangements preventing suppliers from producing private label products for other licensees. A private label cannabis product can include a licensee-specific name or logo, a licensee-trademarked name or logo, or a statement such as “manufactured exclusively for [name of licensee]”.
3rd May 2024: Canada: On 24th April 2024, Health Canada published amendments to modernise the Cosmetic Regulations, among them amendments to the cannabis regulations related to cosmetic ingredient labelling requirements for cannabis-containing topical products. Section 8 of the packaging and labelling guide for cannabis products has been updated to reflect this change and will come into force on 9th October 2024.
27th March 2024: Canada - New Brunswick: The provincial government has introduced amendments to the Cannabis Control Act, which aim to increase compliance, reduce the sale of illegal cannabis and prevent young people from consuming the drug.
22nd March 2024: Canada: Health Canada has published the Legislative Review of the Cannabis Act, which highlights significant progress in establishing a licensing framework for a legal industry, shifting adult consumers to the legal cannabis market, and enforcing rules on promotion, packaging and labelling. However, deficiencies in evidence have impeded a full assessment of the impacts on public health and public safety, indicating a need for sustained investment in surveillance and research. The expert panel engaged with more than 600 participants from over 250 organisations in nearly 140 sessions to better understand the realities and experiences of different communities since the implementation of the act. The expert panel provided 54 recommendations and 11 observations to improve the cannabis framework, including reducing cannabis use among young people and cannabis-related harms; revising health warning messages and packaging on cannabis products; encouraging Finance Canada to review the excise tax model and consider moving to a progressive model where higher-potency products are subject to more tax; reducing the administrative burden on federal licence holders; and allowing pharmacies to distribute cannabis products to people with medical authorisation.
20th March 2024: Canada: Health Canada updated the guidelines for cannabis licence holders on how to apply for an import or export permit in the Cannabis Tracking and Licensing System (CTLS).
5th March 2024: Canada: Health Canada has published the 2024-2025 Departmental Plan. The plan’s objectives include implementing the Cannabis Act, restricting legal access to regulated products to adults, reducing illegal activities involving cannabis, and facilitating reasonable access to cannabis for medical purposes. The department also aims to conduct compliance and enforcement activities, promote a diverse commercial cannabis industry, and develop a cost-effective and efficient electronic Cannabis Personal Registration System. Furthermore, Health Canada plans to strengthen the integrity of the medical access framework, conduct inspections on activities representing the highest risk to public health and safety, and assess the findings and recommendations in the Cannabis Legislative Review Panel’s final report to improve the functioning of the Cannabis Act.
28th February 2024: Canada: The Canada Revenue Agency (CRA) has ordered cannabis wholesalers to garnish payments originally intended for licensed producers to cover unpaid taxes. This move is a significant step to address delinquent tax payments and will directly impact the bottom line of those who owe taxes. The CRA has not disclosed the number of licensed producers affected or the total amount involved, leaving the full extent of enforcement unclear. The growing number of Canadian cannabis companies deferring federal excise tax payments indicates financial struggles among operators.
21st February 2024: Canada: Health Canada has updated the fees laid out in the Cannabis Fees Order, following the 2023 Consumer Price Index of 4.4%. The new rates will apply from 1st April. Health Canada is also launching a new page that provides a summary of reporting requirements for cannabis and industrial hemp licence holders.

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