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Colombia Now Has Mandatory Medical Cannabis as a Part of Healthcare

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Government funded healthcare doesn’t usually come with medical weed, but Colombia is changing that. Colombia recently announced that medical cannabis is now a mandatory part of the healthcare program going forward, for all residents. Read on for details.

Colombia and mandatory medical cannabis healthcare

Colombia ended 2022 with a pretty cool announcement. According to the Ministry of Health, as of the beginning of 2023, Colombia will involve medical cannabis products, as a mandatory part of healthcare coverage. The products must be plant-based; and all insurance providers in the country are mandated to provide them, at their own cost.

On December 30th, 2022, The Ministry of Health signed off on Resolution 2808 of 2022. These revisions get around issues that came out of the previous year’s Resolution 2292, which added 654 medical procedures, and increased the active pharmaceutical ingredients covered, to 1059 from 459. Included are medical marijuana derivatives, which made their first appearance in the 2022 resolution. Though psychoactive THC medications remain illegal, the law according to that resolution, mandates the coverage of CBD and THC derivatives.

One of the ambiguities that arose from Resolution 2292, was whether insurance also covered plant-based medical cannabis magistral preparations (preparations made directly by the pharmacist/chemist, which are not ‘standardized’ medications). The new revisions confirm that such preparations are okay.


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Along with this clarification, Resolution 2808 also added more medical conditions that can be treated with medical cannabis, like: chronic and neuropathic pain, cancer pain, sleep disorders, epilepsy, and fibromyalgia.

Khiron – the big winner

Perhaps the organization to benefit from this new legal update the most (and who has been benefiting since Resolution 2292 went into effect) is Khiron Life Sciences, Corp. (KHRN) This Bogotá, Colombia based pharmaceutical company saw business grow exponentially after Resolution 2292 went into effect. By midway through 2022, the company reported that more than 90% of its cannabis sales in Colombia, were for cannabis prescription medications.

This is already a lot of business, but Khiron played yet another hand. Khiron has a medical cannabis clinic network (100% owned by the company), called Zerenia™ Colombia. Zerenia signed a contract to provide medical cannabis medications, with the biggest of the government-owned insurance companies in the city of Bogotá. That company reportedly has over a million covered residents.

According to a PRNewswire report, this union marks the first time a Latin American insurance company has signed a contract for medical cannabis services and products. And it gives Khiron a leg up in the growing medical cannabis industry of the country.

Said Khiron CEO Alvaro Torres, “Today is a great day for patients in Colombia and Khiron. We welcome the decision from the new Colombian government to categorically mandate insurance coverage for our medical cannabis products. With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products to our patients.”

He continued, “In parallel, we have also secured a first-of-its-kind contractual relationship with one of Colombia´s largest government-owned insurance companies for medical cannabis specific healthcare services and dispensation. These two achievements, will allow us to revert to predictable recurring revenues, shorter collection periods and improved cashflow.”

What about recreational cannabis in Colombia?

Recreational cannabis isn’t legal in Colombia, though it was decriminalized in 1994. The decriminalization covers the personal use and possession of all drugs, not just weed. In 2012, this was further flushed out with the specific amount of 20 grams as the line for prosecution. In 2015, a Constitutional Court ruling allowed the cultivation of up to 20 plants.

Then there was a downturn with former president Ivan Duque in 2018. That year he instituted a decree saying law enforcement could indeed confiscate small amounts of cannabis, along with giving a fine of over 200,000 pesos. In 2019, parts of the decree were shot down by the Constitutional Court as unconstitutional, but not the searching and confiscating of drugs; though it did remove the consequences so long as the amount is under 20 grams.

Sale, supply, and trafficking crimes are all predictably illegal. The maximum prison sentence for sale and supply is up to 20 years, which incidentally, is higher than the top amount given for rape. For those caught trafficking, the maximum is up to 30 years.

Colombia and cannabis laws
Colombia and cannabis laws

There have been several initiatives over the last couple years to legalize the recreational use of cannabis, but none succeeded. The country also tried a couple years ago to legalize cocaine, with a policy where the government would buy all the crop, creating a savings of 2.6 trillion pesos ($680 million USD). This did not happen, but it did shine quite a light on the high cost of drug eradication. Four trillion ($1 billion) is spent getting rid of the plants every year.

New government and cannabis reform in Colombia

That Colombia now mandated medical cannabis coverage as a part of healthcare, is likely related to the new governance of the country. In May and June of 2022, Colombia held elections in which standing president Ivan Duque, a member of the center-right Democratic Centre Party, (who brought us the backward moving decree in 2018), was barred from running due to term limitations.

Gustavo Petro of the Colombia Humana party won the runoff election, and became the first left-wing candidate to enter the presidency. Running mate Francia Márquez, is the first afro-Colombian vice-president, and the second woman to have the job.

This changeover came about a year after huge protests over Duque’ governance, particularly tax increases and general government corruption. The protests were a breeding ground for police brutality, sexual violence, and may have caused the disappearance of over 200 people. The months-long protests did make Duque withdraw a tax plan, but ran out of control for quite some time causing all kinds of damage. As tends to be, when things get shaken up like this, the population heads to the other side of the spectrum, to try something different.

Petro is all about ending the war on drugs. In August at a summit for mayors, he said, “Of course, peace is possible if you change, for example, the politics against drugs, for example, seen as a war, for a policy of strong prevention of consumption in developed societies… It is time for a new international convention that accepts that the drug war has failed, which has left a million murdered Latin Americans during these 40 years and that leaves 70,000 Americans dead from drug overdoses each year. The war on drugs strengthened the mafias and weakened the states.”

He went on, “The war on drugs has led states to commit crimes and has evaporated the horizon of democracy. Are we going to expect that another million Latin Americans will be murdered and that the number of deaths from overdoses in the United States will rise to 200,000 every year? Or rather, will we exchange failure for a success that allows Colombia and Latin America to live in peace?”

In a clear reference to the mistreatment of Colombia by America, Petro continued that such a new policy is “necessary because of the extraordinary threat posed by illicit drug trafficking to the national security of that country.” And that “Colombia has appropriate procedures in place to protect against innocent loss of life in the air and on the ground in connection with such interdiction, which includes effective means to identify and warn an aircraft before the use of force is directed against the aircraft.”

Colombia and global cannabis

Colombia joined in on the international cannabis trade in 2020. In fact, it was Khiron that made the first export of high THC products out of the country. These were all medical cannabis products that went to Farmacia Universal S.A.C. in Peru. Since that time, Colombian companies have exported cannabis finished products, seeds, and oils to several different nations.

Colombia is in the international cannabis market
Colombia is in the international cannabis market

The company Clever Leaves (US based multinational cannabis company) earned EU GMP certification for its facilities in Colombia a few years ago, making it the first country of Latin America to do so. The company was also granted a provisional license for operations in Portugal, from Infarmed. It opened a cultivation center in that country. And at the time, it looked like this was definitely the way to go.

Unfortunately, not many people predicted the cannabis industry well, and what seemed like it would work well in 2020, turned into the opposite by the end of 2022. On January 23rd of this year, Clever Leaves announced a staff cut of 25% in its Portugal facility, with the addendum that it wants to stop all operations in Portugal, and bring them back to Colombia to save money.

Clever Leaves CEO Andres Fajardo put it this way: “By exclusively cultivating and producing our cannabinoid products in Colombia, we aim to leverage our existing cost efficiencies in the country as we ramp our dry flower offering, believe this transition will allow us to optimize our production infrastructure and drive increased cost savings, positioning us to compete more effectively in the global medicinal cannabis market.”

Conclusion

It’s up and down for Colombia (and Colombian companies) in terms of weed. The Clever Leaves debacle fits in with tons of other layoffs in the industry; but it does seem that Colombia has found a way to increase its own market with mandatory medical cannabis as a part of healthcare. We’ll have to wait and see how the whole thing works out. And for Colombia’s next move in the international world of weed.

This is not the first story involving an insurance company partnering with a company to provide alternate medications. Last year I reported that the insurance company Enthea was partnering with the company Dr. Bronners, to provide psychedelic healthcare for applicable workers in America.

Thanks for stopping by! Welcome to Cannadelics.com; a drugs news site geared toward reporting on the most-interesting stories in the cannabis and psychedelics spaces. Be a part of it by stopping over daily, and sign up to the Cannadelics Weekly Newsletter, so you’re always on top of what’s going on.



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Netherlands To Open Legal Cannabis Sales

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If you’ve ever been to the Netherlands, that title is a bit confusing; but the reality of the Netherlands is that it doesn’t operate how most think. In a recent turn of events; the Netherlands announced it would open legal and limited cannabis sales, to investigate a legal market.

Netherlands to open legal cannabis sales

Before we get into why this is a weird title, let’s first dive right into the current news story. The story started back in February of this year, when Netherlands Health Minister Ernst Kuipers announced what sounds like a cannabis pilot program; which would provide limited legal cannabis sales to specific areas of the country. He announced that Tilburg and Breda would be the first places to enjoy this new market; but that a total of about 10 municipalities could be involved.

For those unfamiliar with what a cannabis pilot program is, its essentially an experiment into how to run a cannabis sales market. We see the same thing in Switzerland, which approved a program for Zurich; and it’s expected that Germany will begin a similar setup within the next year. Germany had originally planned for a full sales market, but did a quick and extreme about-face when it became clear the EU would not allow it.

This idea of needing to accommodate the EU is important here, because it applies to the Netherlands as well. If Germany is not legally capable of pushing a policy the EU doesn’t agree with, the Netherlands can’t either. Meaning Germany now shows us the utmost of what can be expected for an EU country on the legal weed front. In terms of Switzerland, though the country chose to wade in with limited legal sales as a part of a pilot program; it has no need to care about EU policy, as its not a part of the EU.

Netherlands pilot program for legal cannabis sales
Netherlands pilot program for legal cannabis sales

The Netherlands has been planning this for a little while now, but met a few delays along the way; mainly in having enough licensed cultivators in the necessary regions of study. For example, the Tilburg and Breda locations only have a couple licensed cultivators to provide coffee shops with product.

Prior to the most recent announcement, the country didn’t want to start a pilot program without at least three cultivators ready to go. The Netherlands changed stance, and is now ready to allow the Tilburg and Breda locations to open; with two more cultivators expected to join in, in early 2024. The eight additional pilot programs will not open unless these two locations work out. Feelings are generally optimistic.

When it was first announced in February, Breda’s Mayor, Dr. Paul Depla stated, “With this start-up phase in Brabant we can gain first experiences, detect teething problems and gather the knowledge to perfect the experiment. In this way, we can make a flying start with the large-scale experiment.”

Apart from the designated areas like Tilburg and Breda, the country will also open at least one part of Amsterdam to legal sales as well. If you know anything about the Netherlands and weed, this move is necessary, but we’ll get to that in a minute. Overall, should authorities decide they are unhappy with this new program, it can be shut down.

Why a pilot program for legal cannabis sales is funny

Let’s be honest for a second, the Netherlands has enjoyed cannabis sales to the public for decades of time. In this changing world of cannabis reform, the Netherlands is no longer the sole focal point of the weed world, but it was for a really long time. Long enough that this policy is a bit laughable. Of all countries, there is none other that has as much accumulated knowledge of how to run a cannabis sales market. And yet here it is, acting like these first legal sales, are some kind of entrance into a new world.

To be clear, cannabis is not legal in the Netherlands; and it hasn’t been in the entire time the country has built up its industry. Cannabis has been illegal in the country since 1928’s passage of the Opium Act; although since 1972, a Policy of Tolerance has allowed the use of cannabis in coffee shops, without punishment to either vendors or buyers. Law enforcement can choose whether to make a big deal over a specific occurrence; but usually its all ignored unless children are involved.

Netherlands allows home cultivation
Netherlands allows home cultivation

Cannabis is decriminalized up to five grams for personal use, which includes the ability to cultivate up to five plants. Greater amounts than this can incur a fine up to €75, or prison time; depending on amount and purpose. When it comes to cultivation, law enforcement generally looks for those illegally growing for commercial purposes.

In terms of basic cannabis laws, the Netherlands isn’t that far off from other European countries; and a look at policy on the surface doesn’t indicate that this country functions differently than others. However, the Policy of Tolerance has spawned a huge market of coffee shops which provide cannabis sales, particularly in the capital of Amsterdam.

Netherlands Policy of Tolerance vs pilot program

A cannabis pilot program is meant to gain information on how to run a legal sales market. Logically, though, these markets are already open in different countries, which makes the idea of it as an experiment, a little late in the game. Perhaps simply looking at the positives and detractions of other markets is now more functionally useful. Or, in the case of the Netherlands, it really only has to gather data on its already existent coffee shop market.

While the pilot program step is a little unnecessary in places like Switzerland and Germany, its gravely unnecessary in the Netherlands. Like every other place, the Netherlands wants a taxable market; as the government currently has no control of the coffee shop system, or the illegal cultivation that supplies the shops. But in terms of how to do it, literally no country has more answers than the Netherlands. Even if you want to argue that it doesn’t have experience in legal production; it actually does! The Netherlands legalized medical cannabis, and a medical sales market, in 2003.

The current coffee shops have been running since the mid-1970’s. We’re literally in the 5th decade of information collection. And it’s not like the shops run completely lawlessly. IDs are checked. Maximum sales amounts are instituted. Alcohol and hard drugs are separated. Weapons are prohibited. Taxes are collected. This is a market operating in daylight, and it’s been going on for over half a century. There are sales statistics involved. The Netherlands ‘trying out cannabis sales’ is like Mexico ‘trying out taco sales.’

Regardless of the lack of logic, this is what the Netherlands is now planning. And realistically, its not all about logic; its also about finding a way to make a taxable market, within EU guidelines. Its quite possible that without the EU overseeing everything; that the Netherlands might have taken this step a long time ago. There is an incredibly silly aspect to it, sure, but there is also a reality that makes this silly concept, the only thing the Netherlands can do.

Netherlands looking to have legal cannabis market
Netherlands looking to have legal cannabis market

What to expect

In past years, the government spoke more about trying to end the weed tourism market in the country, but always to no avail. This new policy is more in line with the understanding of the inability to prohibit cannabis use; for both residents and tourists. In light of understanding a lack of control over the markets, many governments have changed tack and legalized the plant, in order to make it a taxable market they can benefit from.

But is there any way the government is going to change such a long-standing system in the Netherlands? Will it ruin what is already there, or make it less preferable for consumers? There are plenty of options in the world of weed tourism these days. Can the Netherlands market withstand tampering by the government?

I don’t know. It’s hard to imagine anything fundamentally changing the system now; but this doesn’t mean it can’t be done. If Amsterdam still stood as the main weed tourism location, government involvement might be less meaningful. But, governments tend to institute high taxes and regulatory fees, which raise prices. With more options available in the world, the Netherlands government might have stumbled on the one way to get rid of its gray cannabis sales market: make it legal!

Conclusion

Amsterdam reined supreme as the world’s weed capital for a long time; but things are changing. The new question now is how well the Netherlands can tolerate an actually legal sales market; complete with all standard government interference.

Welcome weed supporters! We’re glad you made it to Cannadelics.com; where we work hard to bring you the most interesting news and commentary in the growing worlds of cannabis and hallucinogens. Come by frequently to stay in-the-loop; and get subscribed to the Cannadelics Weekly Newsletter; to ensure you’re never late to get the news.



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Ketamine Healthcare via Enthea; Now Nationwide

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Ketamine is one of the up-and-comers in the new hallucinogen craze that’s taking over; and it just got pushed to a whole new level. According to recent reports, ketamine is now offered by healthcare provider Enthea, throughout the entire US.

A bit about ketamine and hallucinogens

First off, ketamine isn’t a psychedelic. It’s often classified that way today, as a means of simplifying for the public, what is actually a complicated categorization system of drugs. There are different kinds of hallucinogens, and psychedelics are one grouping. However this grouping only consists of LSD, DMT, psilocybin, and mescaline. Though MDMA is often included in this group, its technically classified as a psychostimulant. These drugs (psychedelics and MDMA) are specifically known to cause an agonist response at serotonin receptors; which means they raise the amount of serotonin in the system.

Ketamine is classified as a dissociative hallucinogen, along with drugs like PCP and DXM. These drugs have a primary action as antagonists at NMDA receptors, among other actions. The other official grouping of hallucinogens, is deliriants; a classing which involves plants like datura, and compounds like scopolamine, or even the allergy medicine Benadryl. These are all anticholinergics, which means they have an antagonistic effect at acetylcholine receptors, and decrease acetylcholine in the system.

Ketamine is a synthetic, lab-made drug, which was formulated in 1962 by the pharmaceutical company Parke-Davis. The idea was to find a powerful anesthetic, which didn’t cause damage, or lower vital body processes; like blood pressure, or breathing rates. Ketamine works as a sedative, but not as a hypnotic; meaning it makes a person drowsy, without putting them to sleep. It causes what’s described as “electrophysiological and functional dissociation between thalamocortical and limbic systems.” In my personal experience it quite literally feels like the parts of the brain are moving away from each other.

Enthea healthcare provides clinic and at-home ketamine therapy
Enthea healthcare provides clinic and at-home ketamine therapy

Unlike a lot of the drugs we speak about here, ketamine is not a Schedule I compound. In fact, it’s a Schedule III compounds, legal for medical use as an anesthetic in humans and animals. However, as per FDA rules for off-label prescribing; wherein a drug can be prescribed by a physician for uses other than what its officially cleared for; ketamine has been at the center of a growing gray medical market. Legal by off-label prescribing, but with no governmental regulation for what its being used for.

This loophole spawned an entire industry of clinics that offer treatments for pain and different psychological disorders. And patients don’t need to worry about their primary care physician (or specialist) giving them a prescription; they can get it directly from the clinic. This is a major benefit, as individual doctor opinions do not update at the same speeds.

Ketamine now offered as healthcare throughout US

Gray markets present an issue for government bodies. Unlike defined black markets, they aren’t necessarily illegal; in fact, by definition, they’re not. But they’re also not legal markets, which means they’re hard to go after legally, but they also provide no additional tax benefit to regulating bodies. As such, regulating bodies either want to get rid of them (think vapes and cannabinoids), or formally regulate them. Currently with ketamine, there’s a standstill; and this is being taken advantage of by Enthea Healthcare.

I’ve covered Enthea before, and its pioneering efforts to provide ketamine as a basic healthcare benefit. The company is the first licensed workplace healthcare provider for psychedelic therapies, and plans to utilize other hallucinogens for treatment upon their approval. Due to recently closed deals, Enthea expanded out to the point of now offering this coverage nationwide.

I reported last year that Enthea partnered with Dr. Bronner’s, making for the first offering of ketamine therapy as a part of worker healthcare. In late summer, Enthea released a progress report indicating that so far these ketamine treatments have been used by a small percentage of the staff, and provided positive benefits.

As per its report: 7% of Dr. Bronner’s staff utilized ketamine services since their initiation into the healthcare program. Initial reporting indicates that workers experiencing PTSD, general anxiety issues, or major depressive disorder, reported improvements of 86%, 65%, and 67% respectively. While no one said ketamine treatments will help everyone; imagine the possible improvement if these percents are relevant across an entire population’s use.

Employment healthcare options to treat stress and depression
Employment healthcare options to treat stress and depression

Now, Enthea is expanding its coverage further with new deals. According to Live5News, Enthea’s new deals are with the clinic chains Skylight Psychedelics and Innerwell. Both provide ketamine therapy throughout the US, which expands Enthea’s reach. The first, offers treatments in its Skylight Journey Centers, as well as at-home treatments, for those who prefer not to be in a clinic.

The second, Innerwell, provides therapy as a combination approach; involving a team of holistic therapists, along with standard medical approaches, and coaching. The company seeks to use data and patient outcomes, to drive the direction of treatment. This company also provides in-house and at-home services.

What does a company need to do to offer these services to their workers? Simply add it on to the plan, as they would for dental or vision coverage. All the employer must do, is sign up. Enthea handles everything else, including: a providers network, established policy which includes standards of care, treatment authorization and reimbursement for companies, educational services, and specifically tailored plans for a company’s precise needs.

Sherry Rais, Enthea’s co-founder and CEO stated, “Nationwide availability represents a pivotal moment in accomplishing Enthea’s mission of helping employers with workplace mental health challenges. Our services at Enthea make it easy on businesses to embrace this safe and effective treatment offering for their employees and we’re proud to have the potential to impact the millions of people in the US living with mental health conditions.”

The problem of workplace depression

How necessary is it to find better treatments and services for employees? I suppose that’s a matter of opinion. Some people love getting up every day to navigate their work environment. Others cringe at the sound of each alarm; sickened by another day of office politics, possible bulling by bosses or peers, long work days away from family, and feelings of being overworked and underpaid. Let’s take a closer look at the issue of workplace depression.

According to an American Psychological Association 2021 Work and Well-being Survey, 59% of respondents said that just within the past month, their work was impacted by work-place stress. A huge 87% said they believe that better handling by employers could reduce mental health issues in workplace environments.

Employers can institute a benefits policy they think is best for workers
Employers can institute a benefits policy they think is best for workers

Further to this, a CDC informational page on workplace depression, states that depression causes a loss of 200 million working days a year, combined. This overall costs employers approximately $17 – $44 billion yearly. Depression issues lead to missed work days, and simply not being present or productive while at work.

According to NORC in conjunction with University of Chicago’s National Safety Council; “employers that support mental health see a return of $4 for every dollar invested in mental health treatment.” This indicates that if employers are more thoughtful of their employee’s issues and mindsets; they can improve their own spending, and essentially, waste less.

What jobs cause the most stress? According to the CDC, 10.8% of personal care and service workers report workplace stress, making for the highest stress jobs. Food industry workers clock in at 10.3% who experience stress. Lower stress jobs such as engineering, architecture, and surveying, report that only about 4.3% of employees are stressed.

Life, physical, and social science workers also experience lower stress, at a rate of 4.4%; the same as installation, maintenance, and repairmen. Of course, not everyone understands the concept of their own depression, or wants to admit to it in any context, given the massive stigma attached. I expect these numbers are actually incredibly low for these reasons of possible skewed reporting.

The National Safety Council, for its part, contributes that mental health issues among workers accounts for an extra $3,000 yearly per worker in healthcare services; and that the cost for days lost to stress-related issues is $4,783 per employee, every year. It’s a bad cycle. Stress issues lower worker ability, which means employers lose out as well. Perhaps this makes them then put more stress on employees.

Conclusion

So far, the broad use of ketamine therapy for workplace employees is still a new and growing concept. With the help of Enthea, however, it can now be utilized by any employer in the US who wants to offer ketamine, and other psychedelic treatments, as they become available. If you are an employer, and you want to offer your employees these services, go here. And if you’re an employee who wants coverage of these services; you’ll soon have a growing number of workplaces offering it. Just hold tight.

Hey there drug aficionados! Thanks for making your way to Cannadelics.com. We’re an independent publication in the drug space, here to bring you cutting-edge reporting every day. Don’t be a stranger; join us regularly for updates; and sign up to the Cannadelics Weekly Newsletter, so you’re never late to get the news.



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B.C. Court Dismisses Cannabis Retail Lawsuit – Cannabis | Weed | Marijuana

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A British Columbia (B.C.) court dismissed a lawsuit from owners of licensed cannabis retail shops. Last year, this group of cannabis retailers sued the province for not enforcing cannabis regulations.

While licensed cannabis retailers jump through bureaucratic hoops and pay excessive taxes on the faulty premise that this contributes to “public health and safety,” the B.C. Bud market of “illicit” retailers doesn’t face these same hurdles.

Particularly on Indigenous Reserves, where the plaintiffs claim damages of at least $40 million in lost revenue.

Justice Basran considered whether the province owed the plaintiffs a private law duty of care in this context. The plaintiffs claimed the province committed torts of negligence and negligent misrepresentation.

But what does this mean? And was Justice Basran’s dismissal of the lawsuit justified? 

Details of the Plaintiff’s (Cannabis Retail) Argument

B.C. Court Dismisses Cannabis Retail Lawsuit

While the cannabis retailers suing the province wished to remain anonymous, CLN uncovered who they were. Their position is understandable. The government sold them a bill of goods.

When Canada legalized cannabis, the province of B.C. effectively said, “play by the rules and you’ll profit.” The reality has been anything but.

Obviously, licensed cannabis retailers are at a competitive disadvantage vis-a-vis the unlicensed cannabis shops

So why did Justice Basran dismiss the lawsuit? 

First, let’s look at what the plaintiffs claimed in their suit. What do “torts of negligence” and “negligent misrepresentation” refer to in this context?

Tort Law

Negligence is a fundamental concept in tort law. It means a failure to exercise a degree of care reasonable people would exercise in similar circumstances.

To establish a claim of negligence, the plaintiff (in this case, a group of licensed cannabis retailers) needed to prove the following:

  • That the province of B.C. owed a duty of care to the licensed cannabis retailers. 
  • That the province breached that duty by failing to meet the standard of care expected under the circumstances (i.e. The province’s cannabis enforcement authority should have been raiding unlicensed shops more than they were)
  • That the province’s breach of duty directly caused harm or damages (i.e. Causation) to the licensed cannabis retailers
  • And that these actual harms (or losses) result from the province’s breach of duty.

The plaintiffs alleged that B.C. failed to enforce cannabis regulations (specifically, the Cannabis Control and Licensing Act) on Indigenous Reserves. They claimed this negligence resulted in damages of at least $40 million.

Negligent misrepresentation is a specific type of negligence claim that arises when one party provides false or misleading information to another party, and the party receiving the information relies on it (to their detriment).

To establish negligent misrepresentation, the licensed cannabis retailers had to prove the following:

  • That the province made a false statement, whether intentionally or not
  • That the plaintiffs relied on this false statement
  • The plaintiffs suffered financial (or other) losses from relying on this false statement.

In this case, the plaintiffs said that B.C. promised them a viable, legal, above-the-board retail cannabis industry. One way of ensuring this would be to take enforcement action against unlicensed retailers, whether on Indigenous Reserves or not.

Did the B.C. Government Owe a Duty of Care to the Cannabis Retailers?

B.C. Court Dismisses Cannabis Retail Lawsuit
Unlicensed cannabis shop in B.C.

Justice Basran considered whether the province owed the plaintiffs a private law duty of care. The B.C. government argued that it did not owe such a duty because the parties had no direct relationship.

But what does this mean?

In tort law, a “duty of care” is a legal obligation imposed on an individual (or group, entity, etc.) to exercise reasonable care and caution to prevent harm to others affected by their actions and omissions.

Of course, not all actions or omissions give rise to a duty of care. That’s where proximity comes in, which refers to the direct relationship between the parties. In this case, whether a direct connection between the province’s cannabis regulators and the cannabis retailers justifies imposing a legal duty.

Justice Basran had to determine whether the province of B.C. owed a “private law duty of care” to the cannabis retailers. Of course, B.C. argued that it did not. They argued that their duty was the “public interest,” not the economic interests of specific businesses.

Justice Basran agreed that no duty of care existed due to lack of proximity. 

How Did the Court Come to this Decision?

B.C. Court Dismisses Cannabis Retail Lawsuit

Justice Basran dismissed the B.C. cannabis retail lawsuit based on the “plain and obvious” legal standard used when deciding to strike pleadings. 

The court considered the Anns/Cooper test to determine whether a duty of care existed. This involves two stages. First, whether the harm alleged was reasonably foreseeable. And second, whether there is a close relationship between the parties (proximity).

Justice Basran found no prima facie duty of care between the province and the licensed cannabis retailers. The court argued that B.C.’s cannabis regulations do not establish a legislative intention to create such a duty.

The court also ruled that the claims made by the province (i.e. Get licensed and profit) did not create a sufficient relationship to impose a duty of care.

Suppose the court had recognized that such a duty exists. Justice Basran was concerned such a decision could result in more of these types of lawsuits where the province (and its regulators) are held liable for the economic losses of numerous businesses due to their incompetence.

Justice Basran weighed the potential negative consequences of such a decision and decided it wouldn’t be in the best interests of the legal system, taxpayers, or society as a whole to impose such a duty.

B.C. Court Dismisses Cannabis Retail Lawsuit

A B.C. court has dismissed the cannabis retail lawsuit. The decisions sound as if what’s convenient for the government overrules what’s just and fair.

Was Justice Basran’s dismissal of the lawsuit justified? Judges are, after all, only human. And there is an appeals court. So, there may be more to the case in the future.

In the meantime, to argue that judges in Canada have far too much power, that they are, in effect, legislating from the margins is considered a “far-right” viewpoint. 

But there is nothing “far-right” or even “far-left” about upholding the values that underpin our rule of law. 

Suppose governments can evade the consequences of their actions because of the potential cost to taxpayers or the legal system. In that case, there is no rule of law.

It’s rule by fiat masquerading as a rule of law.





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