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Canada’s cannabis industry players are not happy with an amendment to Bill C45 that will prevent them from advertising through “brand elements”.

The amendment, which was voted on Friday, removed the section of Canada’s recreational cannabis bill that would allow companies to promote products and services using brand elements, such as t-shirts and hats. 

The move is aimed at closing what senators are calling a loophole, that is used by alcohol and tobacco companies that allows these products and brands to be “marketed to our kids by stealth” said Conservative senator Judith Seidman. 

Cannabis companies however, claim that the move will reduce their ability to compete with the black market. According to Chief Executive of Organigram Holdings Inc., Greg Engel, “ We’re trying to compete with a market that has extensive branding both in terms of packaging, and in term of their swag and their online digital presence”. As a result, they believe that the black market will have an advantage in branding to cannabis consumers. 

Source: http://business.financialpost.com/cannabis/senate-ban-on-marijuana-swag-creates-unintended-problems-says-industry

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