Cannabis companies Canopy Growth and Halo face Health Canada scrutiny over event sponsorships

Emma Spears - thegrowthop.com Posted 5 years ago
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LP giant Canopy Growth Corp. and extraction company Halo are facing investigation by Health Canada after the latter believes their sponsorship of a charity event for children may have violated sections of the Cannabis Act.

 

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The companies were two of the many sponsors of an event supporting Kids, Cops and Computers for the Merry Go Round Children’s Foundation. The annual event, known as Inspiration Night, took place on October 23—less than a week after the Cannabis Act came into force and Canada federally legalized the drug for recreational use. Liberal MP Bill Blair—chosen to lead a federal-provincial task force to create a plan for cannabis legalization—is the honorary chairman of the foundation.

Both cannabis companies’ corporate logos were used in the promotional materials for the event.

While it is not prohibited for cannabis companies to sponsor events, the promotion or display of a cannabis brand element is strictly verboten.

Section 21 of the Act states that “It is prohibited to display, refer to or otherwise use any of the following, directly or indirectly in a promotion that is used in the sponsorship of a person, entity, event, activity or facility [Section 21]: a brand element of cannabis, of a cannabis accessory or of a service related to cannabis; the name of a person that  produces, sells or distributes cannabis;  sells or distributes a cannabis accessory” or “provides a service related to cannabis.”

“We are gathering facts and information about the situation to determine whether there may be an instance of non-compliance with the promotion prohibitions in the Cannabis Act,” Health Canada spokesman Geoffroy Legault-Thivierge told CTV News. “A range of factors including, but not limited to, the purpose of any promotion, its content, its context, and its intended audience would be assessed when enforcing the prohibitions on promotion in the Cannabis Act.”

Whether or not Canopy is allowed to display its logo is confusing, as technically it is the holding company of other companies that distribute cannabis but does not do so itself. It could also be argued, however, that as the company is strongly associated with cannabis, the regulations still apply.

Merry Go Round has since removed all Halo and Canopy logos from its site, list of sponsors and promotional materials.

 

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