Pubdate: Fri, 31 Mar 2017
Source: Toronto Sun (CN ON)
Copyright: 2017 Canoe Limited Partnership
Contact: http://www.torontosun.com/letter-to-editor
Website: http://torontosun.com/
Details: http://www.mapinc.org/media/457
Author: Alexandra Posadzki
Page: 16

BRANDING, TAXES AT ISSUE

Producers lobby feds ahead of medical pot rules

Several licensed marijuana producers have penned a letter to Ottawa,
urging the federal government to allow them to brand their products
and provide medical cannabis on a tax-free basis.

The seven producers - Tilray, Tweed, Mettrum, CannTrust, Green Organic
Dutchman Holdings, RedeCan Pharm and Delta 9 BioTech - are lobbying
the government ahead of the week of April 10, when legislation
legalizing recreational use of the drug is expected to be introduced.

A federal task force has recommended requiring plain packaging for
cannabis and advertising restrictions similar to those placed on the
tobacco industry.

But in their letter, the licensed producers argue that preventing them
from branding their products will make it tougher for them to compete
with black market operations such as illegal dispensaries.

"Brands allow professional companies to separate themselves from less
scrupulous competitors," says Brendan Kennedy, president of B.C.based
marijuana producer Tilray.

Some health advocates have argued that restricting branding and
advertising is necessary in order to ensure that users are aware of
possible health risks associated with the substance.

Another concern is that cannabis producers could use advertising to
compel widespread usage of the drug, similar to what occurred with
tobacco and alcohol in the past.

But the licensed producers say they aren't looking to lure people into
consuming marijuana. Instead, they wish to use branding and in-store
advertising to educate users about various strains and their impacts,
according to the letter.

"No one in this industry is looking to repeat the same mistakes as
tobacco or alcohol," says Kennedy. "No one wants to see a Joe Camel of
this industry."

Cannabis producers also take issue with the tax force's recommendation
that medical and recreational cannabis be taxed the same amount.

This would "unduly burden" medical cannabis patients, according to the
companies, who argue that medical cannabis should be sold tax-free.

"Other pharmaceutical products aren't taxed," says Kennedy.
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