Ever noticed how cannabis shops seem to be everywhere now? It’s like the second legalization happened, storefronts popped up overnight. But if you’ve been paying attention, you’ve probably also seen some of those same stores shut down just as fast. So what’s the deal? Are these businesses actually following The Cannabis Act, or are they skating on thin legal ice?
The Wild Early Days of Legalization (The Cannabis Act)
When Canada legalized cannabis, a lot of people assumed it was a free-for-all. Entrepreneurs rushed to open dispensaries, but many didn’t realize just how strict the rules were—especially around how cannabis can be marketed. Some shops followed the legal framework carefully. Others? Not so much. That’s why law enforcement stepped in, shutting down businesses that weren’t playing by the rules.
The problem is, even for business owners trying to do things legally, The Cannabis Act isn’t exactly easy to navigate. The government regulates everything from packaging to store design to advertising. One misstep—say, a flashy sign or a social media post that looks too promotional—and you could be in violation.
What the Law Actually Says About Promotion
Peter Murphy, a partner at Shibley Righton LLP, has spent years helping clients navigate tricky legal landscapes. While he specializes in privacy and data law, he also handles real estate deals and trademark issues in Ontario—both of which are directly relevant to the cannabis industry.
Under The Cannabis Act, brands can’t advertise in a way that could appeal to minors, make health claims, or promote a “lifestyle” image (like alcohol brands do). That means no celebrity endorsements, no cool graphics, and definitely no social media influencers hyping up products. Everything has to be strictly factual and brand-neutral.
For cannabis businesses, this creates a challenge: how do you stand out without breaking the law? Some have found creative loopholes—like using educational content or sponsorships that align with government rules—but it’s a constant balancing act.
The Cannabis Act: The Crackdown on Illicit Marketing
Government agencies aren’t just handing out warnings—they’re actively cracking down on illegal cannabis promotions. In 2021, Health Canada sent dozens of compliance letters to cannabis companies that violated advertising laws. Some businesses were fined, while others had to completely overhaul their marketing strategies to stay operational.
A major area of enforcement for The Cannabis Act? Social media. Some brands tried using Instagram and TikTok to indirectly promote their products, thinking that avoiding direct advertising would keep them safe. But regulators weren’t having it. If a post even suggested cannabis use as a lifestyle choice, it was enough to trigger a warning or fine.
Even brick-and-mortar stores aren’t immune. Some shops have been forced to remove signage or window displays deemed too promotional. Others that pushed the limits on packaging design—using vibrant colors or playful branding—have been ordered to repackage their products entirely.
How Brands Work Around Restrictions of The Cannabis Act
Despite the heavy restrictions, cannabis businesses still need to market themselves. So, what’s working?
- Educational Content – Many brands now focus on teaching rather than selling. Blogs, webinars, and in-store workshops on cannabis strains, consumption methods, and industry news have become key marketing strategies.
- SEO & Organic Search – Since paid advertising is limited, cannabis companies are leaning hard into search engine optimization (SEO). By ranking high in Google searches, they attract customers without violating The Cannabis Act.
- Email & Loyalty Programs – While public advertising is restricted, direct marketing to existing customers is fair game. That’s why many cannabis retailers focus on growing email lists and launching rewards programs.
- Sponsorships & Community Engagement – While they can’t sponsor music festivals or events that attract minors, some cannabis companies partner with advocacy groups, research initiatives, or cannabis-friendly charities.
The Future of Cannabis Marketing in Canada
With cannabis now firmly part of Canada’s retail landscape, expect further adjustments to The Cannabis Act. Many industry experts argue that the current marketing restrictions are too harsh and push consumers toward the illicit market, where brands face no such limitations.
Some lawmakers have suggested loosening the rules—especially for medical cannabis—so brands can provide clearer health-related information. Others believe cannabis should be marketed more like alcohol, with some creative freedom but strong guidelines to prevent underage appeal.
For now, though, businesses have to work within the system. Whether through educational marketing, SEO strategies, or loyalty programs, cannabis brands are finding ways to grow while staying compliant.
Final Thoughts on The Cannabis Act
If you’re in the cannabis business, understanding The Cannabis Act isn’t optional—it’s essential. The regulations are strict, enforcement is real, and getting it wrong can cost you big time. But with smart strategies and a focus on compliance, businesses can still thrive in this rapidly evolving industry.
Author: Mark Ellis
Mark Ellis is a legal affairs writer with a background in regulatory law, specializing in cannabis legislation and compliance in Canada.
