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Cannabis

Cannabis Conclave Returning To Davos: Meet Benzinga At The Event

The Cannabis Conclave is returning to Davos on Jan. 23, alongside the World Economic Forum.

The Conclave, which is hosted by the Consumer Choice Center and Prohibition Partners, is an industry event that seeks to connect industry leaders, investors and policy makers. The purpose of the event is to advance the legalization discussion internationally, for both medical and recreational cannabis.

The event consists of a networking luncheon at the mountainside Restaurant Höhenweg, where guests will be treated to a full Swiss three course lunch, along with thought provoking presentations.

“We are excited to be back in Davos for our second annual Cannabis Conclave. This year we will have industry leaders from 24 countries in attendance. Our event will ensure that cannabis policy remains front and center as the world’s most influential people descend on Davos for the week,” David Clement, North American Affairs Manager at Consumer Choice Center, told Benzinga.

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

Banning Cannabis Vape May Lead to Bigger Black Market Problem, Warns Consumer Choice Center

Banning Cannabis Vape May Lead to Bigger Black Market Problem, Warns Consumer Choice Center

The Consumer Choice Center says the province’s cannabis vape ban is a dangerous mistake.

The provincial government on Wednesday announced that it is not going to allow the sale of cannabis vape products in Newfoundland and Labrador – at least for the time-being.

David Clement of the Consumer Choice Center, an anti-regulation non-profit organization, says the move to ban cannabis vape devices does more harm than good, and will put consumer safety at risk.

Clement says available evidence shows that severe lung illnesses from vaping are being caused by illegal vape products with harmful and prohibited additives, that are not in legal products.

He says the ban prevents legal and compliant products from stamping out the black market alternatives that are hurting people, making the problem worse.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

Cannabis Conclave Returns To Davos in 2020

Annual Cannabis Conclave Davos

The Cannabis Conclave, a premier cannabis industry event, will be returning to Davos on January 23rd, 2020.

Washington, DC, Dec. 06, 2019 (GLOBE NEWSWIRE) — The Consumer Choice Center is pleased to announce that the Cannabis Conclave will be returning to Davos, Switzerland on January 23, 2020.

The Cannabis Conclave was first hosted in January 2019. The conclave is a legal medical and recreational cannabis event that takes place at the mountainside Restaurant Höhenweg in Davos, Switzerland. The conclave brings together cannabis industry executives, global investors, policy makers, and international media. The purpose of the event is to fuel the legalization debate globally, both for recreational and medical cannabis, and to highlight the growing legitimacy and maturity of the legal industry. As the world’s most influential executives, activists, and change-makers descend on Davos, the conclave will ensure that cannabis is front and center in the global discussion. The conclave is a one-day event, taking place from 11:00am – 4:00pm on January 23rd. 

The event is officially sponsored by the Consumer Choice Center, Prohibition Partners, Fluence by OSRAM, and Golden Eagle Partners (GEP).

For sponsorship opportunities, speaking opportunities, or to request to attend the Cannabis Conclave, please email event organizer David Clement at [email protected].

Consumer Choice Center: The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at www.consumerchoicecenter.org.

Prohibition Partners: Prohibition Partners is widely recognised as the world’s leading provider of market intelligence, data-driven solutions and corporate strategy for the emerging cannabis industry. Our knowledge, insight, and network is unrivaled at the forefront of regulatory change and investor engagement across multiple global markets. Learn more at www.prohibitionpartners.com

Fluence by OSRAM: Fluence Bioengineering, Inc., a wholly-owned subsidiary of OSRAM, creates the most powerful and energy-efficient LED lighting solutions for commercial crop production and research applications. Fluence is the leading LED lighting supplier in the global cannabis market and is committed to enabling more efficient crop production with the world’s top vertical farms and greenhouse produce growers. Fluence global headquarters are based in Austin, Texas, with its EMEA headquarters in Rotterdam, Netherlands. For more information about Fluence, visit https://fluence.science

Golden Eagle Partners (GEP): GEP’s combined experience in the early stages of the cannabis and life science sectors helps us confidently close strategic and financing transactions that match the near- and long-term goals of our marijuana and hemp clients. We specialize in mergers, acquisitions, reverse mergers, financings and incremental transactions such as licensing, joint ventures and co-development arrangements. Learn more at www.goldeneaglepartners.com


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

Consumer Group Says Open Up Cannabis Market

A consumer advocacy group is concerned with the Higgs government’s requests for proposal for a single operator to take over Cannabis NB.

David Clement, North American affairs manager for Consumer Choice Centre, says the government is taking away any chance of healthy competition and entrepreneurship and should use the Alberta model.

“It has competition between different firms and different companies. You have small businesses applying for these licences and opening up stores with more than 200 outlets thus far,” stated Clement.

“Most of the benefits from the private sector come from the competitive and entrepreneurial spirit that exists when you open a market up, so by consolidating everything in one company, it is almost trading one monopoly for another.”

Although the centre agrees with the idea of having Cannabis NB privatized, it says the Higgs government is taking one step forward and two steps back with this approach.

Originally posted here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

Now Is the Time: Congressional Legalization of Cannabis Will Unite a Polarized Nation

CONTACT:
Yaël Ossowski
Deputy Director
Consumer Choice Center
[email protected]

Now Is the Time: Congressional Legalization of Cannabis Will Unite a Polarized Nation

Washington, D.C. –  The eyes of the nation are on the U.S. Capitol this week as millions are tuning in to the impeachment hearings of President Donald Trump. There is plenty of polarization to go around, but Congress has a unique opportunity to deliver a bipartisan win that will be cheered by millions of Americans: rescheduling cannabis would do exactly that.

The House Judiciary Committee today reviewed H.R. 3884, the Marijuana Opportunity Reinvestment and Expungement Act of 2019, a bill that would remove Schedule 1 drug status for cannabis, set up simple rules and community incentives for decriminalization, and allow states to create their own rules.

Yaël Ossowski, deputy director of the DC-based Consumer Choice Center, said a bipartisan endorsement of cannabis decriminalization and legalization before Christmas would unite the nation in a time of bitter partisanship.

“Americans are united in their opposition to the status quo on cannabis policy at the federal level. That’s why now, with so much polarization emanating from Washington, is the perfect time to remind the American people why they elected their representatives in the first place,” said Ossowski.

“Federal cannabis prohibition has created generations of victims, plagued our criminal justice system with injustice, and inflamed a vibrant illegal sector that operates without regulation or concern for safety.

“That’s why we urgently need smart cannabis policy now, one that encourages competition, entrepreneurship, avoids red tape, and eradicates the black market. This is the biggest opportunity for a major policy change we have seen in decades, and consumers and citizens are clamoring for it.

“Consumers should be able to choose their cannabis products safely in a legal and regulated market. That would benefit not only citizens and patients, but also promote economic growth, raise revenue for cash-strapped cities and states, and finally restore justice to the millions who have been locked out of society due to their use of cannabis.

“Nearly a third of the country already has legal cannabis. Now it’s up to Congress to give the rest of the nation that opportunity and help us heal the partisanship divide when we need it most,” said Ossowski.


Earlier this year, the Consumer Choice Center published its Smart Cannabis Policy Primer, available here.

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice.

We represent consumers in over 100 countries across the globe and closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

Ontario to allow cannabis retailers to sell online and over the phone

Cannabis retailers will soon be able to sell products online or over the phone for in-store pick-up as the Ontario government adopts a “click-and-connect” sales model to expand access to legal marijuana.

Finance Minister Rod Phillips announced the proposed changes in the government’s fall economic statement Wednesday, saying they will decrease waits for cannabis and help combat the black market.

The shift comes as the Progressive Conservative government pledges to lift a cap it imposed on the number of cannabis stores in Ontario.

“All of the provincial jurisdictions are learning and trying to make sure that we take the best approach,” Phillips said. “Our priorities are getting rid of black market cannabis and safety in our communities.”

The government had initially said there would be no cap on the number of retail pot shops after cannabis was legalized. That decision marked a change of course from the previous Liberal government, which created the Ontario Cannabis Store and had planned to tightly control cannabis sales through government-owned stores similar to the LCBO.

But a supply shortage prompted the Tory government last December to cap the initial number of pot retail licences to just 25 so operators would be able to open.

The number of legal pot outlets in Ontario is increasing from 25 to 75 this fall.

The government also said Wednesday it will allow licensed producers to have retail stores on each of their production sites to further increase access.

The Tories had planned to allow that after coming to power in 2018 but did not enact the necessary regulations when the supply shortage caused them to cap the number of retail stores.

The government said Wednesday it will amend legislation and provincial regulations to make the changes but has given no immediate timeline when they will take effect.

Omar Yar Khan, a vice president at strategy firm Hill+Knowlton who advises cannabis sector clients, said the changes will help encourage customers to move from the black market to legal retailers.

“In an era where customers are used to an Amazon Prime experience … anything the government can do to allow these legal markets to reach consumers on channels they’re already on is a step in the right direction,” he said.

Khan said the government needs to uncap the retail market if it wants to continue to fight the illicit market.

“They need to move fast on that, and I think they will,” he said.

One consumer advocacy group praised the move towards “click-and-connect” sales but said the government could have gone further.

“It makes the legal market more consumer-friendly by increasing access and allowing consumers to place orders and pick them up … but it would be that much better if they coupled that with the ability for stores to provide deliver services,” said David Clement, manager of North American affairs for the Consumer Choice Center.

Clement said the changes that allow pot producers to open retail space could create a tourism industry around cannabis.

“If you go to brewery or a distillery, often you can take a tour or talk to the master brewer,” he said. “That on-site selling opportunity has been used to provide consumers with other experiences they otherwise wouldn’t have.”

This report by The Canadian Press was first published on Nov, 6th. I was posted on Yahoo Finance here.


FOR MORE INFORMATION ON SMAT CANNABIS POLICIES CLICK HERE


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at 
consumerchoicecenter.org

$1.1 billion worth of cannabis sold in Canada’s first year of legalization

One year after the legalization of recreational cannabis, Cannabis Benchmarks, a company that tracks cannabis prices, estimates that Canadian licensed producers have sold approximately 1.1 billion dollars worth of pot in the past 12 months, the equivalent to 105,000 kilograms—enough to fill almost two rail freight cars.

According to Statistics Canada, licensed retail outlets sold more than $100 million worth of pot in July, the fifth straight month that sales hit an all-time high.

However, some industry analysts believe those numbers would be much higher if not for the many stumbling blocks the industry has encountered in the first year of legalization. They cite several problems, ranging from non-compliant packaging to the failure of some producers to increase cultivation capacity in time to meet demand. But according to many analysts, the number one problem has been the regulators.

An article published by the Motley Fool, a financial services company, said federal regulators were not prepared to handle legalization of recreational cannabis. Health Canada had more than 800 cultivation, processing, and sales applications when the year started, but took several months or more to review them, the article stated. That “kept cultivators, processors, and retailers waiting in the wings to meet [consumer] demand.”

“There are many risks involved in overseeing cannabis and Health Canada tries to manage risk,” Alanna Sokic, a senior consultant for Global Public Affairs, told Leafly.  “The industry runs at breakneck speed and government does not.”

“Canadian licensed producers have sold approximately $1.1 billion worth of cannabis in the past 12 months, the equivalent to 105,000 kilograms—enough to fill almost two rail freight cars.”

Cannabis Benchmarks

Sales figures should be higher

Analysts have criticized some provinces for being slow to approve retail licenses. In Ontario and Quebec, for example, there are so few brick-and-mortar stores that many consumers are faced with the prospect of buying cannabis online—an unappealing option for the many consumers who want to see and smell their product before buying it legally—or getting it on the illicit market.

Many of them have chosen the latter route. The amount of legal cannabis Canadians have purchased in the past year (105,000 kilos) represents just 11.4% of the total amount they are thought to consume annually.

Canada’s most populous province has completely botched the rollout of the cannabis retail market according to analysts. After Doug Ford became premier of Ontario in June 2018, he announced that his government would award cannabis retail licenses through a lottery system. Two lotteries have been held so far.

This system has been fraught with problems, including inexperienced winners and concerns that some of them have sold their licenses on the illicit market.

“If you needed a brain surgeon, would you pick one through a lottery? Cannabis retail is best left to those who are knowledgeable and reliable,” BCMI Cannabis Report author Chris Damas told Leafly.

There are also indications the lottery system has been gamed by big players. A physical address was required for each entry. In the second lottery, in August, the average number of entries per each winning address was 24. One address was entered into the lottery 173 times. Each entry cost $75.

The amount of legal cannabis Canadians have purchased in the past year (105,000 kilos) represents just 11.4% of the total amount they are thought to consume annually.

Some of the applicants are so unhappy with the system they have taken their case to court. Eleven of them won the right to apply for a retail license through the second lottery but were later disqualified for not providing required documents by the regulator’s deadline. They responded by asking the court for a judicial review. The province’s plan to hold another lottery was suspended until Sept. 27, when the court dismissed the applicants’ request.

There are now just 24 retail outlets in a province that has a population of more than 14 million. “Ontario could support a thousand stores—and that’s a conservative estimate,” Damas told Leafly. “The provincial government blew it. If Ontario was punching at the weight it should be, Canadian sales numbers would be much higher.”

The Ford government attributes the slow rollout of retail to supply issues at the federal level. They say stores might go out of business if they open while there is limited cannabis supply. But as David Clement of the Consumer Choice Center stated in The Globe and Mail, the province doesn’t have the same approach when it comes to granting alcohol licenses for restaurants, bars, or clubs even though there is a high failure rate (60%) for these businesses.

Also, all the provinces are dealing with the same supply issues, yet some have done a much better job of establishing a cannabis retail market. For example, there are more than 300 retail outlets in Alberta, even though the province’s population is just 4.3 million—less than a third the size of Ontario’s population. Alberta outlets sold $124 million dollars’ worth of cannabis in the first eight months of legalization while Ontario outlets sold $121 million.

They key to Alberta’s success is its comparatively free-market regime, say analysts. The province’s regulatory body is the sole distributor of recreational cannabis just as it is in Ontario. However, in Alberta, anyone can apply for a license to open up a retail location. The opening of retail outlets is driven by market demand.

‘Gong show’ will get sorted out

“Sales numbers are what can be expected when some provinces (in the Prairies) embrace a free-market model and others don’t,” Damas said. “It has been a fiasco in certain provinces,” he said, referring to Ontario as well as Quebec, which has 22 stores and a population of eight million.

But Damas and other analysts are optimistic about the future of cannabis retail in Canada. Economist Trevor Tombe at the University of Calgary said in a tweet that “the gong show” in Ontario will get sorted out. Indeed, the province just announced it was launching consultations aimed at getting the private sector more involved in cannabis storage and delivery.

“Sales numbers are what can be expected when some provinces (in the Prairies) embrace a free-market model and others don’t.”

Chris Damas, BCMI Cannabis Report author

“If you look across Canada you will see a patchwork of regulation. Some provinces are performing much better than others because they have prioritized access,” Sokic told Leafly. “In the past year, some lessons have been learned. Provinces who haven’t prioritized market access are considering it so that they can accomplish their objectives. I think the future looks bright.”

Originally published here.


The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

What should consumers know about cannabis edibles?

In the second season of the Netflix series Rotten, there is an entire episode exploring the world of cannabis edibles. It is highly recommended.

The documentary itself does a great job uncovering the latest innovations, the legal hurdles, and many questions left for consumers who want to try cannabis edibles where they’re legal.

Going beyond the documentary, what should consumers know about cannabis edibles?

Check out Rotten Season Two: “High on Edibles

First, we should make clear that markets are evolving as quick as the laws are being written.

Cannabis products containing THC, the actual psychoactive compound, remain a Schedule 1 drug per the Controlled Substances Act. This means the federal government believes cannabis (all strains) has a high potential for abuse, has no accepted medical use, and there is a lack of safety even under medical supervision.

However, since 2018’s Farm Bill, industrial hemp has been legal, opening the door for cannabis strains that contain the non-psychoactive CBD to be sold around the country. I testified on this important subject at an FDA hearing this spring.

Therefore, though we’re mostly discussing THC edibles, there is also a booming market for CBD edibles in stores throughout the United States, the legality of which seems to be supported by the legalization of industrial hemp. It is a gray zone that has not been clarified by any federal law.

Therefore, for THC edibles, they’re only technically legal for general consumers in the eleven U.S. states (including D.C.) that have legalized recreational cannabis.

Though the states differ in regulation, the most mature markets are in California, Oregon, Washington, and Nevada, which have fully functioning legal markets that include edible cannabis products, topicals, and cannabis extracts.

CANADA

Canada legalized recreational cannabis in October 2018, but the first phase only included cannabis flowers, to be smoked or cooked into edibles by consumers.

My colleague David Clement has written about the problematic laws in Canada, which differ by province and will only allow edible products this year.

Though cannabis edibles and extracts will be technically legal by Oct. 17, 2019 (nearly a year after legalization), Health Canada rules require companies to inform the federal government of their plans starting on that date, at least 60 days before they can sell. So it’ll be December before we see any edibles, topicals, and extracts on Canadian shelves.

EUROPE

The only jurisdiction that has any legal market in (THC) cannabis is in the Netherlands, but it is far from a commercial market. Because the cultivation and shipment of cannabis are technically illegal, the Dutch system is actually also a gray area, one in which the government tolerates cannabis sales but gives very little legal legitimacy.

That said, many European countries have shops that sell edible CBD products, usually containing less than 0.3% THC in most countries. And several countries such as Germany and Spain do offer medical cannabis, including edibles, but only in highly regulated circumstances.

UNITED STATES

Returning to the legal THC edible markets for cannabis in the United States, and to the most mature markets mentioned above, legal products in these states have grown in popularity in the years since legislation.

The latest figures from 2017 in Colorado, for example, show that edibles and concentrates now make up 36% of cannabis sales, up from just 30.5% two years prior.

These edibles range in potency and form, but often are found in gummies, cakes, cookies, lollipops, capsules, chocolates, drinks, and much more. Cannabis “shake” – pre-ground flower – is often sold to be infused with food at home.

According to the market firm CBD Analytics, gummies are now the most popular edible item found in cannabis dispensaries. In the first four months of 2019, sales of gummies alone in California, Oregon, and Colorado amounted to more than $115 million.

The states differ in how many milligrams of THC they allow, but following Colorado’s rules, each package contains 10mg or 100mg, 10mg being the standard “dose”. It is recommended that newcomers not ingest more than 5mg during their first try. Too high of a dose will result in a strong effect on the user.

TESTING

Testing of edibles is a requirement in these jurisdictions, mostly for potency, dangerous substances, and pesticides, and the results of these tests must be made available to both regulators and consumers. Thus far, most testing is conducted by private labs, which must be licensed by the states.

TAXATION

Of course, THC cannabis products are highly taxed in the jurisdictions where they are legal. The average excise tax is 15%, but then one must also add significant sales taxes as well. The Tax Foundation keeps great documentation on the competing tax rates on cannabis in states where it is legal.

It is recommended that these jurisdictions keep taxation moderate, lest they push consumers back into the illegal market because of too high prices.

ADVERTISING AND BRANDING

Laws on advertising and banding also are quite different between legal jurisdictions for these products. As we have noted in our Policy Primer on Smart Cannabis Policy, Washington State has some of the better laws when it comes to how much information companies can share or how much branding they’re allowed to put on the packages for edibles.

More branding and the ability to advertise make it possible for consumers to establish loyalty and root out bad apples. They also give consumers better information on the potency of edibles, the form, tastes, and what the products are best used for. That’s crucial for consumer choice.

WHAT SHOULD CONSUMERS KNOW?

  • Only a handful of U.S. states have legal THC cannabis edible markets
  • CBD edibles, thanks to the 2018 Farm Bill, are now widely available around the country
  • Cannabis edibles range in potency and form
  • Testing of cannabis edibles is highly regulated and must be conducted to check for potency, dangerous substances, and pesticides
  • Taxes are generally very high, but should be moderate to encourage the legal market
  • Advertising and branding rules sometimes limit what companies are allowed to tell consumers

Opinion: The Liberals are blowing smoke with claim they ‘wiped out’ half of illegal cannabis market

Opinion: About 80% of all cannabis bought in Canada is being purchased on the illegal market, far from the 50% figure claimed

The federal election is just a few months away, which means Canadians are going to be bombarded with claims from the government about its apparent successes, while at the same time hearing endless counter arguments from opposition parties. In this sea of endless noise, it can be difficult to parse out where the federal government actually stands on its claims, and whether the opposition parties have legitimate grievances, or are just opposing for the sake of opposing.

When election day does come, Canada will be a year in to cannabis legalization, which gives us a good opportunity to reflect on how things have gone thus far. Legalization is smart policy overall. That said, at nearly the one-year mark, there is lots to reflect on regarding Canada’s cannabis legalization experiment.

Just last week new StatsCan figures came out in regards to consumer behaviour and cannabis usage. Some interesting facts emerged, like the fact that men are two times more likely to consume cannabis than women are, and that men are more likely to use cannabis for non-medicinal reasons. In addition to usage patterns, StatsCan revealed that 48 per cent of cannabis consumers surveyed said they purchased some of their cannabis in the legal market. As soon as the report came out, Trudeau’s right-hand man, Gerry Butts, and senior policy adviser Tyler Meredith, were quick to pat themselves on the back for “wiping out half of the illegal market.” Wiping out half of the illegal market would be incredible, and something worth congratulating, if it were true.

The first issue with their claim is that Canadians surveyed had to self report, meaning they had to admit to committing an illegal act in order to fall into the “purchased illegally” category. Anyone who has taken an introductory research methods course knows that this percentage is almost certainly undervalued, with the real percentage of illegal purchasers being much higher. In fact, StatsCan data from the same report hints at that very fact, with 37 per cent of consumers saying they got their cannabis from family and friends. Facing the reality of admitting to a crime, it is likely that many of those surveyed opted for the family and friends option, over admitting to making illegal purchases. Ironically, the report cited by Butts and company actually explains that less than 30 per cent of cannabis consumers purchase exclusively in the legal market.

Beside the issue of self reporting, both Butts and Meredith made their 50 per cent claim based on data that doesn’t actually mean that half the illegal market is gone. It is fantastic that nearly 50 per cent of consumers self reportedly purchased some cannabis legally, however, that figure doesn’t actually mean that half the illegal market has been wiped out. This type of analysis is incredibly sloppy, because it doesn’t take into account the quantity of cannabis purchased. The past StatsCan quarterly snapshot showed that Canadians spent $5.9 billion on cannabis, with the black market accounting for $4.7 billion of that total. Thus, approximately 80 per cent of all cannabis bought in Canada was done so in the illegal market, which is far off from the 50 per cent figure being touted by Liberal party brass.

Canadians are smart enough to know when their government is telling half truths for the purpose of misdirection 

There are a variety of reasons why the illegal market is still persistent in post-legalization Canada. Those reasons largely come down to three factors: price, access and product variability. For each of those factors, the federal government failed to put consumers first when creating Canada’s legal framework. For price, it has been well documented that illegal cannabis is getting cheaper, while legal cannabis is heading in the opposite direction. The price gap between legal and illegal cannabis is largely a combination of poor federal policy compounded by provincial mistakes. Legal cannabis, at the federal level, has GST applied to it, a 10 per cent excise tax, and half a billion dollars in compliance fees for producers. These taxes and fees, in addition to provincial boutique taxes, are in large part why legal cannabis is upwards of double the price of illegal cannabis.

For access, the federal government’s overly cautious approach has significantly hampered the consumer experience for those who do purchase legally. Anyone who has been into a legal store right away sees the sterile nature of Canada’s legal market. Products can’t be seen in advance by consumers, and when they do get their product, their purchase is in overly paternalistic plain packaging. On top of that, the marketing and advertising restrictions for legal cannabis more closely mirror tobacco restrictions, when they should be more in line with how alcohol is marketed. All of these federal rules treat adult consumers like children, and take the fun out of the legal industry. This matters because the legal industry has to be more attractive than the illegal industry, and it’s hard for the legal industry to do so with its hands tied behind its back.

A cannabis package with a child-resistant zipper=like opening. Supplied

Lastly, is product variability. The federal government made the mistake of legalizing only dried cannabis and oils on legalization day. It misguidedly gave itself a one-year buffer to roll out edibles, extracts and topicals. Failing to legalize all product varieties only serves the black market. Simply put, the more variety in products available to consumers on the legal market, the easier it is to pull consumers away from the black market. Again, stamping out the black market, like the Liberals claim they have, depends on making the legal market more attractive, but that becomes nearly impossible when federal policy is wrapped in paternalistic nonsense.

The federal election is on the horizon, and the SNC-Lavalin scandal is back in full force. Fictional ad man Don Draper once said, “if you don’t like what people are saying about you, change the conversation.” This appears to be what Liberal party brass are trying to do with their braggadocious cannabis claims. The problem is that Canadians are smart enough to know when their government is telling half truths for the purpose of misdirection. This is exactly what is happening, and we can all see it.

David Clement is the North American Affairs Manager with the Consumer Choice Center.

Originally published here

Luxembourg to be first European country to legalise cannabis

Two representatives of the Consumer Choice Centre, a US-based NGO, travelled to Luxembourg in April to offer their advice on legislation.

One area of contention is whether to ban the use of cannabis in public, which risks discriminating against tenants and people of limited means. The officials recommended allowing use of the drug in specific public areas.

Read more here

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