Formal complaints to Health Canada about rival cannabis companies nearly doubled in 2020 compared to the previous year, according to a report from Marijuana Business Daily.
Risky business
There were 182 complaints filed to Health Canada in 2020 compared to 97 in 2019 — an increase that some say show that companies are beginning to test the waters more when it comes to the regulations to see what’s being enforced and how.
“More and more companies are realizing that they can take a little bit more of a flexible view of how they can navigate that regulatory path in difficult, competitive times,” said David Hyde, CEO of Hyde Advisory & Investments, in the piece, “and they’re willing to take a little bit more risk in that way.”
The Green Rush isn’t over
Hyde also told MJ Biz that the high number shows how fierce competition among cultivators and retailers continues to be more than two years post-legalization. As companies experiment with slightly riskier ways to do business, competitors balk and make a formal complaint.
“…they don’t want other businesses on an uneven footing or doing things they believe they can’t do.”
Still no clarity
The irony is that neither the public nor the companies making the complaints are privy to how Health Canada deals with them — only those complained about face the music, which can come in the form of warning letters or revoked licenses.
So the message is:
Want to know what Health Canada cares about? Take [strategic, well-considered] risks if you want to find out.
