Health Canada is looking into whether two cannabis companies' sponsorship of a children's charity event last October is in violation of promotion restrictions within the Cannabis Act.
Licensed producer Canopy Growth Corp. and cannabis extraction company Halo Labs were among the sponsors of an Oct. 23 event in support of Kids, Cops & Computers for the Merry Go Round Children's Foundation, whose honorary chairman is federal Organized Crime Reduction Minister Bill Blair.
"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," said Health Canada spokesman Geoffroy Legault-Thivierge in an email. The act stipulates that it is prohibited to display, refer to or otherwise use a brand element of cannabis directly, or indirectly, in a promotion that is used in the sponsorship of a person, entity, event, activity or facility. As well, it is prohibited to display the name of a person that produces, sells, or distributes cannabis, sells or distributes a cannabis accessory or provides a service related to cannabis.
Canopy Growth said it is not prohibited from sponsoring an event as long as cannabis is not promoted. However, the act says it is prohibited to use a trademark or brand name slogan that evokes or is reasonably associated with cannabis, said Toronto-based lawyer Matt Maurer.
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