Private cannabis dealers fight back through unlicensed businesses

British Columbia cannabis retailers, Okanagan in particular, are frustrated with competition. Worst of all, they are unlicensed and shouldn’t hurt private retailers’ profits. The unlicensed shops create an unfair advantage in an already oversaturated market.

Licensed cannabis stores are also annoyed by the government’s interest in undercutting private legal cannabis retail stores through taxpayer-subsidized stores rather than achieving that goal through actual enforcement actions.

The Okanagan Cannabis Collective, which represents about 20 cannabis stores in the Okanagan, has released an open letter calling on BC Secretary of Public Safety and Attorney General Mike Farnworth, who is responsible for enforcing the provincial cannabis laws, to resign.

Illegal operations

The collective posted a google map document highlighting 35 well-known cannabis stores that operate in BC without a provincial license. Many of the shops are on indigenous land. No efforts have been made to collaborate with indigenous nations.

Legal shops believe that they have the right to do business as they see fit. The government should assist these individuals in obtaining licenses or provide them with the resources to work at the same level of quality for the product.

“Our cannabis law (OKIB Cannabis Control Law) replaces the provincial law. We’re federal and sovereign, so our approach is different from any other, ”says Cory Brewer, owner of Tupa’s Joint, an indigenous-owned cannabis dispensary.

In October 2018, the federal government legalized non-medicinal cannabis and moved enforcement to the province.

The Community Safety Unit (CSU), a branch of the British Columbia government charged with enforcing provincial cannabis laws and enforcing the Federal Cannabis Act, has completely removed the First Nations from law. The First Nations state that they were not consulted in developing the law, allowing many communities to develop their own laws.

Same playing field

To improve the playing field for these licensed cannabis businesses, the government would need to:

• Eliminate PST
• Eliminate the 15% surcharge on products
• Remove license fees

According to the CSU, officials continue to actively pursue unlicensed retailers in communities across BC and have stepped up enforcement efforts.

The ministry said 173 unlicensed retailers have either closed or stopped selling cannabis as a direct result of CSU actions. As of October 4, the province had collected more than $ 1.2 million in fines from illegal retailers who chose to continue operations.

“The CSU also informs owners or operators of real estate about the possible consequences if their premises are used for the sale of cannabis. To date, CSU officials have conducted more than 70 inspections related to the seizure of cannabis with an estimated total sales value of approximately $ 20 million. “

BC’s Secretary of State for Public Safety and Attorney General Mike Farnworth

The Department also wants legal retailers to know that they are continuing to work to support the growth of diverse, legal and strong cannabis sectors, to keep a constant review of cannabis regulations and to ensure that the sector is supported as effectively as possible.