Marketing rules for cannabis remain unclear after legalization | Business



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TORONTO – Despite strict rules restricting the promotion of the now-legal recreational pot, cannabis promotions continue to emerge despite loopholes and lack of clarity on how the gray areas of the legislation should be enforced.

Nearly a month after legalization, there is disagreement in the sector regarding the obscure parts of the cannabis law governing commercialization, with some authorized producers adopting a more aggressive approach and others demonstrating detention.

"The fact that you do not yet observe an overwhelming wave of this type of tactics shows to me that there is still uncertainty," said Rebecca Brown, founder of Crowns Agency, a Toronto-based marketing consulting firm specializing in marijuana. industry.

Canada legalized the recreational pot on October 17, when strict guidelines governing plant promotion came into force.

The blitz of the cannabis industry's advertising billboards, sponsored concerts and pop-up information kiosks seen before legalization has been mitigated, but marijuana brands can be seen on taxis or on social media – which may contravene the law, according to the interpretation.

The cannabis law prohibits the promotion of cannabis among young people and advertisements in places accessible to people under 18 years of age.

It is also forbidden to use mentions or a representation of a person, a character or an animal, or a marketing that presents "a way of life such as glamor. , hobbies, excitement, vitality, risk or daring ".

Some companies have broken this section of the law, according to Health Canada.

Since legalization, the health agency has contacted seven regulated parties "to promote an understanding of new bans on the promotion of cannabis … and to bring specific concerns to their attention," said the spokesman. from the agency, Eric Morissette.

All regulated parties contacted have addressed or are in the process of resolving the issues raised, Health Canada added.

The government agency would not detail the violated parts of the law, but said "for example", it raised concerns about "a promotion using the representation of people and promotions presenting a product or a brand that associates it with a mode of particular life, as a glamorous or recreational lifestyle ".

Health Canada has stated that it will not identify the parties involved "provided they have acted in good faith and taken the necessary corrective action."

Nevertheless, the government's guidelines on pot promotion also include several exceptions and clauses that, according to some, are subject to interpretation.

An exception allows promotion using a "brand element" on a "thing that is neither cannabis nor a cannabis accessory", if that thing is not associated with youth or "vitality" .

For some, this means that ads with just a brand name or logo and a website may be allowed on items such as billboards, Brown said.

"If you read the law clearly or literally, it should be allowed … There are certainly records that feel uncomfortable with that."

Earlier this month, an advertisement for cannabis was seen on a Toronto taxi with its brand name and slogan: "Buds do not travel high.

According to the Canadian Marketing Association's Guide to Cannabis Marketing Activities, it is possible to advertise only with a brand element, without appealing to youth or suggesting a glamorous lifestyle, but "take action be careful and consult a lawyer. "

The largest newspaper publishing house in Canada, Postmedia Network Inc., intends to run ads listing in the loopholes of the law, said spokesperson Phyllise Gelfand.

Postmedia announced earlier this month that it will stop distributing print copies to schools, lest sending newspapers containing ads directly to students is a violation of the law. The last school newspaper delivery took place on Oct. 31, but documents can still be delivered to homes so directly to people over the age of 18, Gelfand said in an email.

When asked if ads with only a branding element and a website in a newspaper would be considered compliant, Health Canada stated that it could not comment on a given situation.

"Newspapers available to the public should generally not contain promotional materials, including advertising, about cannabis," said Health Canada spokeswoman Maryse Durette, noting that any promotion related to the pot can only be done in a publication that is addressed and sent to someone 18 years or older.

The exemption was likely to cover things like t-shirts and hats, but Health Canada needed more clarity, said Trina Fraser, an Ottawa-based lawyer who advises the cannabis industry.

"Of course, I do not think that the objective was essentially to promote mass brands through conventional advertising means, although, again, I think that at most would be limited to the logo or the mark, "Fraser said.

Nick Dean, general manager of Emblem Cannabis, said the pot producer will not run ads on billboards on highways or in newspapers, but will seek to take advantage of social media influencers , did he declare.

"We have plenty of opportunities for us to stay creative in the way we market these brands after legalization," Dean said.

Other exceptions include ads in age-restricted areas where youth are not allowed.

The marketing campaign of Canopy Growth Corp. used billboards, concerts and information kiosks, but promotions were halted on the night of Oct. 16, said co-CEO Bruce Linton, at the time of writing. a recent conference call. Now, the licensed producer uses advertisements in areas classified as posters in bar bathrooms, he said.

"We did not receive a letter from Health Canada informing us that we were not in compliance," Linton said.

Another exception is the digital domain where "reasonable steps" must be taken to ensure that non-adults can not access it. However, it is unclear whether a social media page with a description requesting that its subscribers be adults is a "reasonable step," said the CMA in its guide.

Yet many cannabis companies continue to publish on Instagram, with the phrase "By confirming that you confirm that you are 19 years of age or older" in their accounts.

The industry wants more advice from Health Canada on cannabis promotion activities and more transparency on the warning letters sent so far, Fraser said.

"We do not know what they are talking about, to whom they were sent, or what is the basis of Health Canada's objection in the letter … It's preventing us all, as an industry, to learn and grow. "

– with Nicole Thompson records

Armina Ligaya, Canadian Press

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