Can Staff Encourage or Induce Sales by Offering Cannabis or Accessories at a Discount?

Businesses must understand all laws & regulations related to promoting cannabis products & services. Learn more about promotional activities & best practices.

Can Staff Encourage or Induce Sales by Offering Cannabis or Accessories at a Discount?

The promotion of cannabis is generally prohibited in the Cannabis Act. It is important to know that a promotion of cannabis is defined as a representation made for the purpose of selling cannabis, about cannabis, either directly or indirectly, that is “likely to influence and shape attitudes, beliefs and behaviors in this regard”. Therefore, businesses must be careful when promoting their products or services. Social media marketing continues to thrive, and influencer marketing is increasing as the main advertising tactic for companies and businesses.

However, the use of influential people could be seen as an endorsement under cannabis promotion regulations. To circumvent the law, influencers mention brands, but they don't necessarily promote products in their publications. Organizing a dinner party may not give you the lifestyle appeal that cannabis advertising laws refer to. However, since the law is so new, it's still difficult to know where the line is.

If someone complains about your content, it will most likely be investigated and possibly removed. Health Canada is currently investigating whether the participation of two cannabis companies in a recent children's charity event could be considered a violation of the law, since the company's logos appeared on the charity's sponsor poster and other materials. It is essential to check with your legal team about the best marketing methods to make sure your company complies with the law. The Cannabis Act prohibits distributing cannabis from one or more kinds of cannabis, the total quantity of which is equivalent, as determined in accordance with Annex 3, to more than 5 g of dry cannabis. Cannabis means fresh marijuana, dry marijuana and cannabis oil, as those terms are defined in subsection 1 (of the Regulations on Access to Cannabis for Medical Purposes), and marijuana plants or seeds, within the meaning of those Regulations. A guide to laws, regulations, eligibility requirements, and the licensing and application process for recreational cannabis retail stores in Ontario can be found on Health Canada's website.

Cannabis products returned to the OCS are the responsibility and property of the authorized store until they are physically received by the OCS. Subject to regulations, a person who sells a cannabis accessory or provides a cannabis-related service may promote it at the point of sale if the promotion indicates only its availability, its price or its availability and price. Subject to regulations, a person who is authorized to produce, sell or distribute cannabis may promote cannabis by informational promotion or the promotion of brand preferences if the promotion is. The Registrar's Standards for Retail Cannabis Stores (Standard 1) require operators to comply with these notification requirements, including meeting the deadlines required for filing. The Registrar's Rules for Retail Cannabis Stores generally prohibit licensees from entering into agreements for items, benefits, payments, or services with authorized producers (LPs) and their representatives in order to promote or increase the sale of a particular product by the licensee or their employees. All authorization requests for retail cannabis stores that are in the process of being publicly notified can be searched on the AGCO website through the iAGCo portal. To achieve this, operators may want to consider using a point of sale (POS) system that integrates or interacts with an electronic or software-based perpetual inventory system that tracks all the cannabis products that an authorized store buys, stores, or sells. There are personal and entity disclosure requirements when applying for a cannabis retail operator's license, a retail store authorization, and a retail manager's license.

Conclusion

It is essential for businesses to understand all laws and regulations related to promoting cannabis products and services. Companies must be aware that any promotional activities must comply with these laws. It is also important to check with legal teams about best practices when it comes to marketing methods. Finally, operators should consider using POS systems that integrate with an electronic inventory system that tracks all cannabis products bought, stored or sold.

Cooper Lavoie
Cooper Lavoie

Wannabe tv evangelist. Avid tv junkie. Infuriatingly humble beer guru. Amateur zombie guru. Hardcore tea nerd.