When you take a considerably long look at the facts, you will begin to see how much the cannabis industry has bloomed in Canada, our beautiful neighbor to the north. As of October 17, 2018, small head shops have become part of a budding multi-billion dollar industry powered by some big-named companies like Aurora Growth Corp (one of the biggest marijuana producers in the world). Likewise, the skyrocketing business has paved the way for the first marijuana billionaires. However, some businesses could face some marketing issues, as shown recently with an incident in Newfoundland and Labrador. Let’s take a look at why the Dabber Hashery, a marijuana accessories store, is currently facing backlash for using the term “cannabis” as a marketing tool.
Problems with Advertising
Ironically, on the same day, the Canadian government legalized weed, St. John’s-based retailer Dabber Hashery became the target of the provincial liquor retailer. Sometime later, Newfoundland and Labrador inspectors visited the store and confirmed that owners could not sell marijuana accessories due to the store’s lack of a cannabis license. Still, why was this a problem to begin with? Simply put, officials claimed the use of the word “cannabis” in product marketing was violating federal regulations.
However, Harrison Jordan (a Toronto lawyer specializing in marijuana regulations) confirmed that these regulations do not extend to the use of the word “cannabis.” In other words, the Canadian government requires the “cannabis advertising” is accurate and must not mislead potential buyers.
Restrictions on Legal Products
According to an estimate from a CIBC World Markets employee, Canada is the seat of a $10 billion marijuana market. Nevertheless, Glenn McElfresh (director of business developments at Baker Technologies) confirmed that all sectors will be greatly impacted by Canadian regulations, so some problems are to be expected. Likewise, some licensed producers are affected by provincial laws, meaning some accessories retailers will not be able to set up shop in certain areas of the country. Even more interesting, Jordan has speculated the problem could be aggravated by social media backlash.
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