Pubdate: Thu, 31 Jul 2014
Source: Ottawa Citizen (CN ON)
Page: A8
Copyright: 2014 Postmedia Network Inc.
Contact: http://www.canada.com/ottawacitizen/letters.html
Website: http://www.ottawacitizen.com/
Details: http://www.mapinc.org/media/326
Author: Marie-Danielle Smith

MARIJUANA MEMO FIRES UP DEBATE

Health Canada Warns Canadian Pot Producers About Misleading
Information In Advertising

Health Canada has issued what some are calling a wake-up call to
licensed medical marijuana producers that may be pushing the envelope
when it comes to advertising.

The memo, obtained by the Citizen, was sent June 30 and tells the 13
producers that have been licensed under the regulatory system brought
in April 1 to immediately remove any inappropriate advertising from
"websites and company materials."

"The purpose of the letter was to inform licensed producers that the
Government of Canada is concerned about advertisements that are false,
misleading or deceptive and those that advertise marijuana and remind
them of their obligations, specifically that the advertising marijuana
is prohibited," Health Canada told the Citizen.

The warning underscores possible confusion around just what
constitutes acceptable advertising in the emerging industry.

Neil Closner, chief executive of MedReleaf, a Toronto producer, said
some other licensed producers were buying Google AdWords and engaging
in direct online advertising. Some producers' websites were also
making health claims not permitted by Health Canada regulations, he
said. "I don't know if everyone is completely in compliance just yet,"
said Closner. "From what I understand, the reason for this memo was
really to say to the industry: 'We did establish our regulations, and
some of you are crossing the line.'"

The memo states that under the Food and Drugs Act producers cannot use
misleading information and cannot market or advertise marijuana as a
treatment, preventive or cure for diseases, disorders or abnormal
physical states.

Under Narcotic Control Regulations, which also regulate pharmaceutical
drug producers, advertising marijuana directly to the general public
is not allowed. Health Canada is particularly concerned by materials
"which advertise marijuana in relation to particular therapeutic
claims," the memo said.

It also stressed that licensed producers must refrain from giving an
impression that they, their products or their activities are directly
endorsed by Health Canada.

A source with ties to the industry told the Citizen that licensed
producers had been waiting on this memo from Health Canada for many
months.

Closner said he believes that licensed producers will, starting now,
get their wrists slapped if they are caught doing anything else. "As
of now, the sheriff's in town," he said.

However, just what that wrist slapping would entail is
unclear.

Licensed producers are regularly inspected, and their licences need to
be renewed annually. Closner said Health Canada has hinted it would
scrutinize producers even further, or that they might have difficulty
renewing their licence, should they be found non-compliant.

Mark Zekulin, the executive vice-president at Tweed in Smiths Falls,
said licensed producers have had some difficulty figuring out exactly
what's allowed under advertising regulations.

"We all clearly understand that it means you cannot take out a TV ad
during a Stanley Cup game," said Zekulin, "but you're allowed to have
a Twitter feed. There's a question of what's allowed in the middle."

He said that although the members of the Canadian Medical Cannabis
Industry Association are looking to set minimum standards in other
areas, he doesn't expect them to establish any additional ad policies.
That's up to Health Canada, he said.

"Almost all of the licensed producers are looking for clarity that
lets them compete on a level playing field and lets them know that
they're acting in compliance with their licences," he said. "Stability
and certainty lets you compete fairly, and for most people, that's
what is wanted."

Cam Battley, a spokesman for Bedrocan, another Toronto producer, said
the memo is "a good thing."

"Everybody's got to play by the rules," said Battley. "There are some
concerns here. If companies were to be making therapeutic claims that
are not supported by clinical data, that would be a concern. Claims on
materials and packaging, that would be a concern."

That view is also shared by Denis Arsenault, the CEO of OrganiGram, an
organic marijuana producer in New Brunswick.

"If they had permitted us to have a free-for-all in marketing, I think
we could have companies competing for space, companies competing to
get their message out. To me, it could've been detrimental because
you'd send out that much more confusion in the marketplace," said Arsenault.

OrganiGram already has something to differentiate itself because its
marijuana plants are grown organically, he said. "Perhaps some of my
competitors would've loved to have the opportunity to have a really
snazzy marketing campaign," he added.

One licensed producer that operates in British Columbia, Tilray, is
regularly featured on a marijuana review website in the United States
and application called Leafly. The consumer app and site allow users
to post reviews about different cannabis strains, including ratings of
"top effects" such as "euphoric," "happy," "hungry," "relaxed" and
"sleepy."

Both Tilray and Leafly are owned by the same parent company, Privateer
Holdings.

The Leafly website advertises Tilray as a "featured dispensary" and a
marijuana strain produced by Tilray is a "featured strain" under the
headline Discover the Right Cannabis Strains and Products for You.
Whether this goes against Health Canada regulations is unclear.

"We take the guidance and regulations very seriously and are in
regular contact with Health Canada. They have not expressed any
concerns about our current marketing activities," said Philippe Lucas,
a vice president with Tilray.

"However, we know that the marketing and advertising rules are
evolving, and we look forward to receiving and responding to any
additional guidelines," he said.

"I think if it falls within Health Canada guidelines, it's a very
effective marketing strategy," said OrganiGram's Arsenault. "My hat's
off. I welcome very effective competitors."  
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MAP posted-by: Jo-D