Ottawa, Canada--In a recent report, Canada's Competition Bureau recommended that Health Canada reconsider the current cannabis packaging regulations and increase the allowable concentration of psychoactive constituents in edible products. The bureau believes these changes could bolster the regulated cannabis market while promoting public safety and reducing black market activities.
[Image via CBC]
According to a CBC report, Health Canada is presently revising the Cannabis Act, which has been regulating the nation's cannabis products since 2018. The updated rules are slated for implementation in the coming year.
The business of cannabis, though initially met with great enthusiasm and high valuations, has faced numerous obstacles, such as production and demand issues and managerial and marketing problems. These issues have led to numerous business failures in the industry, which consists of over 1,000 licensed producers and sellers of cannabis.
The report noted that the Competition Bureau had identified three primary recommendations to revitalize the industry. Firstly, it advocates for an increase in the maximum tetrahydrocannabinol (THC) content per serving in edible cannabis products. The THC limit is 10 milligrams per serving, significantly lower than black market products typically offer.
The second recommendation involves relaxing the restrictions on promoting, packaging, and labeling cannabis, enabling legal sellers to educate consumers about product distinctions more effectively. Current regulations require largely nondescript packaging and even limit color usage.
The report noted that the bureau suggests a review of the licensing procedure and the associated regulatory compliance costs to ensure minimal impact on competition.
Niel Marotta, CEO of Indiva, a London-based cannabis company, supports the recommendations. "We've ceded half to two-thirds of this market to the illicit market as a result of these potency limits, which, while perhaps well-intended, really have forced people to go back to the illicit market for the potency and price point that they want," he stated in the report.
However, the report noted that some public health experts, including Michael Armstrong of Brock University, caution that increasing potency could lead to serious public health issues. Rebecca Haines-Saah, a researcher at the University of Calgary, also raises concerns about increased potency, referencing clinical studies that report a surge in ER visits by young individuals exposed to edibles.
Learn more in the CBC report.