The AGCO has observed advertising and marketing practices by some cannabis retailers that may associate recreational cannabis with medicine, health, pharmaceuticals or related wellness concepts. Retailers are reminded that these forms of advertising are prohibited under Standard 6.2.4 of the Registrar's Standards for Cannabis Retail Stores.
Ontario's recreational cannabis retail framework operates separately from Canada's federally regulated medical cannabis framework. Advertising that blurs this distinction by presenting recreational cannabis retailers as sources of medical advice, healthcare, pharmaceutical or wellness services may undermine consumer understanding and does not comply with the Registrar's Standards.
Regulatory Requirements
Licensed cannabis retailers must comply with the Cannabis Licence Act, 2018, its regulations, and the Registrar's Standards for Cannabis Retail Stores, including Standard 6.2, which governs advertising and promotion.
Advertising includes, but is not limited to, branding, signage, promotional materials, websites, social media content, digital advertising, and any other marketing or promotional activities, whether conducted within the authorized cannabis retail store or through other media.
Standard 6.2.4 prohibits advertising that is associated with medicine, health or pharmaceuticals. This prohibition applies broadly to any advertising that expressly or implicitly associates recreational cannabis sold by authorized retail stores with medical, healthcare, pharmaceutical, therapeutic or wellness concepts.
Examples of advertising that may contravene Standard 6.2.4 include, but are not limited to:
- Advertising that presents or implies that a cannabis retail store, or the goods or services it offers, is associated with medicine, healthcare, pharmacies, pharmaceutical services, therapeutic care or clinical care
- Advertising that promotes or implies that the retailer provides, facilitates, endorses or is affiliated with medical, healthcare, wellness or pharmaceutical advice or services, including through referral arrangements, partnerships, endorsements or co-branded promotional activities
- Advertising that uses terminology, imagery or messaging that, in its overall context, may reasonably imply an association with medicine, healthcare or pharmaceuticals. Depending on the context, this may include references to concepts such as "wellness," "well-being," "care," or claims that suggest healthcare or pharmaceutical expertise or endorsement
- Advertising that represents or implies that cannabis has clinical, medical, therapeutic or pharmacological benefits, or otherwise promotes cannabis through medical, healthcare or pharmaceutical claims.
When assessing compliance, the AGCO will consider the overall impression conveyed to consumers, including whether the advertising may reasonably blur the distinction between Ontario's recreational cannabis retail market and Canada's federally regulated medical cannabis framework.
What do I need to do?
Retailers should review advertising and promotional activities to ensure they comply with Standard 6.2.4 of the Registrar's Standards for Cannabis Retail Stores.
This includes reviewing marketing and advertising materials on an ongoing basis, including, but not limited to:
- In-store signage, posters, displays and printed materials
- Websites, mobile applications and other digital platforms
- Social media content, including influencer or third-party promotional content
- Email marketing and customer communications
- Co-branded materials, sponsorships, partnerships, and collaborative marketing initiatives
- Referral programs or any arrangement that directs customers to third-party services or content.
When reviewing advertising, retailers should consider the overall impression created by the material, including whether the advertising could reasonably be perceived as associating the retail cannabis business, or the products or services it offers, with medicine, healthcare, pharmaceuticals, therapeutic services, clinical services, wellness services or health advice services.
Retailers are also reminded that compliance obligations apply regardless of whether advertising is created or disseminated directly by the licence holder or indirectly through third parties acting on the retailer's behalf or in collaboration with the retailer.
Helpful Links
For More Information
- AGCO Inspectors are available to provide guidance and support. Contact your local Inspector directly or email: Compliance@agco.ca
- You may also contact AGCO's Customer Service online anytime through the iAGCO online portal or by phone at 1-800-522-2876, Monday to Friday from 8:30 am to 5:00 pm. Learn more about contacting the AGCO.