MJ Biz report
Health Canada has begun asking some federally licensed marijuana companies to stop selling certain ingestible cannabis products the regulatory agency says are incorrectly classified and labeled as “extracts” rather than “edibles,” MJBizDaily has learned.
The move could cost cannabis businesses millions of dollars, Canadian industry sources say, because the products in question – including some lozenges and chewable extracts – are increasingly popular among consumers.
Executives are puzzled over Health Canada’s timing, especially since some of the products in question have been on the market for years.
The apparent crackdown also comes at a sensitive time for the Canadian marijuana industry, as most publicly traded cannabis producers are still losing money.
From a packaging perspective, the distinction is important because any cannabis product classified as an “extract” has 100 times more allowable THC per package than a product classified as an “edible,” making it more appealing to certain consumers.
One letter sent to a licensee by Health Canada, obtained by MJBizDaily, requests the company to halt the sale of the flagged products.
The letter is from Anika Stella Chasse, acting director general of the Compliance Directorate in Health Canada’s Controlled Substances and Cannabis Branch.
Despite blowing the whistle, Health Canada stopped short of ordering the company to recall the products, which have been on store shelves and available to consumers.
It isn’t known if Health Canada sent a noncompliance letter to every company selling the products now under federal scrutiny or only select producers.
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