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Consumer Goods/Lifestyle

What NZ can learn from Canada’s cannabis experiment

New Zealand and Canada, despite being 13,000 kilometres apart, have a lot in common. Both countries are small in terms of population, punch above their weight economically, and are politically compassionate.

If New Zealand votes to legalise cannabis in 2020, that will be one more similarity that these two Commonwealth countries will share.

The draft policy positions for New Zealand’s cannabis referendum have been released, and for the most part, they mirror what Canada has done for recreational cannabis legalisation.

As a Canadian, I can tell you that legalising cannabis is the right thing to do. I can also say that New Zealand should avoid the regulatory approach that Canada took.

There are several mistakes that Canada made which New Zealand should steer clear of replicating.

The first major one is the failure to differentiate between THC products and non-intoxicating CBD products.

The draft policy positions state that any product produced from the cannabis plant is to be considered a cannabis product. This puts CBD products that are not intoxicating on par with THC products that are.

If New Zealand is to succeed where Canada has failed in legalising cannabis, it needs to create a more consumer-friendly regulatory regime, says Clement.

Following what Canada has done fails to regulate based on a continuum of risk, and runs against the New Zealand Government’s goal of harm reduction.

If the Government cares about minimising harm, it shouldn’t regulate non-intoxicating low-risk products the same way as intoxicating psychoactive ones. Harm reduction should mean making the least harmful products more available, not less available.

The second major mistake in the draft policy positions is the ban on all cannabis advertising. This proposal takes Canada’s very paternalistic advertising laws and exceeds them.

Complete marketing and advertising bans for legal cannabis products are misguided for two reasons. The first is that they are wildly inconsistent with how New Zealand treats other age-restricted goods, such as alcohol. Alcohol has a much higher risk profile when compared to cannabis, but does not have such strict advertising rules.

The second reason is that a complete ban fails to properly understand the role marketing has in moving consumers over from the black market. Modest forms of marketing allow for the legal market to attract existing consumers, who are buying cannabis illegally, into the legal framework.

Legal cannabis accounts for only about 20 per cent of all cannabis consumed in Canada, and that is in large part because the legal industry is handcuffed by regulations that stop them attracting consumers from the black market.

For purchases, and a personal carry limit, the proposed policy is that no New Zealander be allowed to purchase more than 14g of cannabis a day, and that no-one should exceed carrying more than 14g on their person in public. This is extreme when compared to Canada’s 30g limit, and inconsistent when compared to alcohol, which has no purchase or personal limit. It is reasonable to assume that the people criminalised by this arbitrary limit will be the same who were most harmed by prohibition: the marginalised.

Lastly are the policies on potency and taxation. The Government wants to establish a THC potency limit for cannabis products, which is understandable.

That said, whatever the limit is, the Government should avoid setting it too low. If the limit is excessively low, consumers are likely to smoke more to get their desired THC amount. That runs directly against the Government’s harm reduction approach. Secondly, if the limit is too low, it creates a clear signal for black-market actors that there is a niche to fill.

It is important to keep taxation modest, so that pricing can be competitive between the legal and illegal markets. Canada’s onerous excise, sales, and regional taxes can increase the price of legal cannabis by upwards of 29 per cent.

Poor tax policy in Canada is in large part why legal cannabis can be more than 50 per cent more expensive than black-market alternatives. Incentivising consumers to stay in the black market hurts consumer safety, and cuts the Government out of tax revenue entirely.

New Zealand is on the right path regarding cannabis legalisation, but it is important that regulators learn lessons from Canada’s process. For the sake of harm reduction, and stamping out the black market, it is vital that New Zealand has a consumer-friendly regulatory regime, one that specifically avoids, and not replicates, the mistakes made in Canada.


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

A Recipe for A Better World; Nine Parts Innovation, One Part Regulation

“To protect the environment, our health, and promote the social good we have to live more austere lives.”

How often have we heard something along these lines? The problem is, it’s not a very effective approach. 

Tackling the world’s most intractable problems, preserving freedoms and making life better for everyone requires something often overlooked by many who are sincerely interested in making the world better. If advocates for austere living promote bleeding heart liberalism, I believe we should stand for bleeding heart market advocacy.

For a better world, we need more innovation.  

True, the world would be better off if there were more generosity and kindness. But technological innovation, usually backed by private investment, is the most important ingredient for a healthier and yes—more enjoyable—planet.

Meatless Choice

I enjoy eating meat. Although I am sympathetic to concerns about the impacts from eating meat, some more valid than others, I’m not willing to become a vegetarian. Some have gone so far as to propose a sin tax on meat to fight climate change. Whether it is animal welfare, the environment, or my own health, a reduction in my consumption of meat would only please other people. And they are out of luck. At least until now.

Patrick Brown, a biochemistry professor at Stanford saw industrial animal agriculture as the top environmental threat. “I started doing the typical misguided academic approach to the problem,” he said in a Pacific Standard Interview  in 2016. The magazine reported that “he organized an A-list 2010 National Research Council workshop in Washington called “The Role of Animal Agriculture in a Sustainable 21st Century Global Food System,’ which caused not a ripple. Not long after, he determined that the only real way to impact meat production would be to beat it in the free market.”  

Brown, now sounding like a mission-driven innovator, rather than a government funded activist, said “All you have to do is make a product that the current consumers … prefer to what they’re getting now. ” He added that “It’s easier to change people’s behavior than to change their minds.”

With seed funding from Bill Gates, Google, and other innovation-oriented investors, Impossible Foods has deployed scientists to develop plant-based meat alternatives meant to appeal not to vegetarians, but to meat-lovers like me. Unlike vege-burgers, which appeal primary to vegetarians, the goal of this new class of alternatives to burgers are meant to appeal to meat eaters. That’s why they‘ve been rolling it out it as a “plant-based meat” in fast food restaurants known for beef burgers.

The innovation has been the target of displeasure from cattle-ranchers, opposition from environmental activists, and, this is hard to believe, outrage from PETA. Leftist food elitists are also furious. Adrionna Fike of the Mandela Grocery Cooperative criticized the company for trying to switch burger lovers at Burger King because “They exploit so many workers  Think about all the migrant workers.” 

Yet the Impossible Burger and other disruptors like Beyond Meat are taking root in the U.S. market. The Food and Drug Administration recently backed the safety of Impossible Foods’ plant-sourced Leghemoglobin. The protein contains heme, also present in real meat, and is partly responsible for the taste, texture and appearance of bloody-good meat.

The burger even cleared another major regulatory hurdle in May, when it was certified kosher by the Orthodox Union.  

Consumers clearly have an appetite for meaty tasting alternatives to livestock products; The company is facing supply shortages as it ramps up production of Version 2.0, sold at fast food outlets including Burger King, even before it becomes available in the meat department at supermarkets later this year. Food behemoth Nestle just joined the feeding frenzy, announcingthe launch of their own plant-based burger in the fall.

While I may not become a vegetarian, the Impossible Burger and its technological offspring increase the likelihood that I’ll reduce my meat consumption, should I so choose. That’s good news for those who think the world will be better off if I ate less meat. This outcome won’t restrict my freedom, rather it gives me – and many like me – more choices. It is important to note that it came about as the result of private-sector innovation, timely government clearance, and no costly, finger-wagging “public education” campaigns.  

Tobacco Harm Reduction

Cigarette smoking remains a top killer around the world. Even in countries with the strictest anti-smoking taxes and regulations, smoking is still a scourge. It turns out that regulations and taxes do little to help addicted smokers quit, yet many in the tobacco control community continue to oppose tobacco harm reducing technologies, instead calling for only technology-killing regulation, as if that were the only tool in their toolbox. 

In fact, innovative products like e-cigarettes and heated tobacco can—and do—help smokers quit smoking, even though they are not without risk. As the U.S. FDA explains it, “nicotine – while highly addictive – is delivered through products that represent a continuum of risk and is most harmful when delivered through smoke particles in combustible cigarettes.”

Yet innovative companies like Juul, who create alternatives to cigarettes, are seen by many in public health as public enemy number one. But it really shouldn’t be so complicated or divisive. 

E-cigarettes are not entirely safe and they should not be used by kids. The FDA and local governments should use the regulatory and enforcement power and budgets they already have to prevent kids from obtaining e-cigarettes.  Schools and parents should use their moral authority to prevent kids from using them. And regulators should foster an environment which encourages innovation to develop a range of enjoyable and less harmful alternatives for adults who wish to use nicotine.

To its credit, the FDA recently authorized the sale of IQOS, a heated tobacco product, finding that the product is “appropriate for the protection of the public health because, among several key considerations, the products produce fewer or lower levels of some toxins than combustible cigarettes.”

Even a leading skeptic of the benefits of e-cigarettes for smoking cessation recently found it necessary to make a major course correction. In a caveat-rich policy statement, the American Cancer Society acknowledged that “switching to the exclusive use of e-cigarettes is preferable to continuing to smoke combustible products.” ACS’s Clinical Recommendations state that the organization supports “any smoker who is considering quitting, no matter what approach they use.”  

ACS now recommends “that clinicians support all attempts to quit the use of combustible tobacco and work with smokers to eventually stop using any tobacco product, including e-cigarettes.” Finally, and rather reasonably, the ACS advises that “these individuals should be encouraged to switch to the least harmful form of tobacco product possible; switching to the exclusive use of e-cigarettes is preferable to continuing smoking combustible products.”  Unfortunately, the science hasn’t gotten down to ACS’s lobbyists, who continue to call for a ban on the e-cigarette flavors adult smokers use to quit.

In the UK, government health officials estimate that e-cigarettes could already be helping at least 20,000 smokers quit annually, and that’s a conservative estimate, they say. 

Professor John Newton, director for health improvement at Public Health England said the government’s review “reinforces the finding that vaping is a fraction of the risk of smoking, at least 95 percent less harmful, and of negligible risk to bystanders.” To those who continue to sow doubt about the difference in risk between cigarettes and e-cigarettes, Professor Newton noted that “it would be tragic if thousands of smokers who could quit with the help of an e-cigarette are being put off due to false fears about their safety.” 

Who are these modern day merchants of doubt?

Big pharma, which makes FDA approved (but largely ineffective) nicotine replacement therapies and smoking cessation drugs has a lot to lose. Companies such as Pfizer and GlaxoSmithKline are major backers of highly-regarded but old-school tobacco control groups including the American Lung Association, the American Heart Association and the American Cancer Society, which regularly lobby to treat e-cigarettes just like cigarettes. 

Tobacco companies who don’t successfully innovate, also have a lot to lose if the cigarette goes the way of the rotary phone. No wonder some back costly regulatory schemes which serve as a barrier to entry to pesky competitors. 

Innovation-Oriented Problem Solving

Disruptive innovation is not only technologically difficult, but as Impossible Foods is learning, bringing game-changing products to market requires overcoming obstacles from entrenched interests. Those interests frequently masquerade as being in the public interest, but are often anything but.  

I recommend we shift our perspective. If we want to solve problems while protecting our enviable lifestyle we should embrace the idea that imaginative solutions, rather than reliance on ever-more restrictive regulations, are our best hope. Appropriately narrow regulation protects safety while also fostering innovation. 

Sometimes well-intentioned, restrictive government interventions are backward-looking problem-solving tools. Too often, they fail to deliver on the promises made to justify their costs, both in terms of unintended consequences and their cost to individual freedoms. Technological advances, however, are solution-oriented and can make real strides against problems that seem otherwise impossible to overcome. And in today’s polarized environment, that’s no nothing-burger. 

* * * 

Jeff Stier is a Senior Fellow at the Consumer Choice Center and a member of the Federalist Society’s Regulatory Transparency Project FDA Working Group.

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San Francisco vape ban embraces harm over science

OPINION by YAËL OSSOWSKI

In an attempt to curb youth vaping, the Board of Supervisors of the city of San Francisco voted yesterday to ban all sales of vaping devices and e-cigarettes. The ban was passed unanimously and will apply to the sales and distribution of e-cigarettes once it has final approval.

The ban was counterproductive and took the approach of endorsing fear over science. The fact remains that San Francisco consumers can still buy tobacco in all forms, but they won’t be allowed to purchase vaping devices and e-cigarettes that are significantly less harmful.

This is increasing potential harm by only making tobacco legal and pushing committed former smokers and current vapors to travel outside the city to buy their vape products, or even worse, create a black market with no regulation and no oversight.

For the truck driver, waitress, or customer service employee who is addicted to nicotine and has found an alternative to smoking cigarettes in vaping products, they will now be denied that choice by the elected San Francisco Board of Supervisors.

The science is clear: vaping is 95 percent less harmful than smoking and gives adults a fighting chance to quit tobacco. Public policy should be aimed at achieving the goal of less smokers, not more.

The focus on youth access to vaping products is a question of enforcement: for that, there needs to be focus on retailers who are selling to minors illegally, not wholemeal bans that will take away the choices of law-abiding adults.

Youth vaping is a concern, but in the pursuit of reducing its likelihood, San Francisco politicians are effectively denying alternative technologies to adult smokers who want to quit. That’s a dark stain on the Golden City.

YAËL OSSOWSKI  is the Deputy Director for the Consumer Choice Center (CCC). The CCC represents consumers in over 100 countries across the globe, closely monitors regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and informs and activates consumers to fight for consumer choice.

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More Toronto grocery stores will soon be carrying booze

David Clement, Toronto-based North American Affairs Manager of the Consumer Choice Center (CCC), said that the announcement is a step in the right direction.

“The move helps underserved regions, while maxing out the amount of grocery stores allowed under the Master Framework Agreement (MFA). It is positive to see these changes while the province undergoes the process of scrapping the MFA and allowing for alcohol sales in convenience stores,” Clement said.

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