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Legal Marijuana Companies Sponsoring Events in Canada Face Government Crackdown

Canada plans to crack down on legal marijuana companies that sponsor public events such as music festivals.

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Canada plans to crack down on legal marijuana companies that sponsor public events such as music festivals.

Despite last month's passage of the Cannabis Act to legalize recreational marijuana in October, Canada’s national health department raised concerns about cannabis businesses engaged in corporate sponsorships, CTV News reported Monday. The department said the government’s regulations were “abundantly clear” and suggested corporate sponsorships could be considered as marketing to minors.

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“As the law presently stands, the advertising of cannabis is subject to several prohibitions,” the national health department said in a statement. “The department is reviewing the actions of existing licensed producers and will be taking every possible step to bring them into compliance or prevent non-compliance with existing laws.”

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Canopy Growth Corp., a Canadian company that has sponsored events such as Pride Toronto, said it aimed to work within the bounds of existing regulations.

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“We have reviewed all activities with counsel to ensure compliance and continue to work collaboratively with regulators in support of this shared objective,” company spokesperson Caitlin O’Hara said, City News Toronto reported.

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