A Revelstoke cannabis store has been fined $1,000 for selling cannabis at discounted rates during a 50% off sale, a violation of minimum pricing standards
In her Oct. 23 decision, Liquor and Cannabis Regulation Branch delegate Dianne Flood said Fresh Cannabis Co. Inc., which was doing business as Cost Cannabis, was the subject of an April 22, 2024 complaint that it was advertising all products and accessories for sale at 50% off.
An inspector went to the business on April 25 and asked about certain cannabis products to determine if cannabis products were being sold below the minimum pricing set out by the government’sregulations.
The inspector asked about four specific products and the staff person confirmed their sale prices were lower than their list prices, Flood said.
“At that time, (the inspector) was unable to confirm how much the licensee had paid for each of these products as the licensee’s purchase documentation was not available,” Flood wrote.
After an exchange of documents and investigations, the inspector concluded that products inspected on April 25 were being sold below the price the business paid to the government for the cannabis products and the wholesale price of the cannabis products.
Flood said the notice of enforcement action said control of cannabis prices is directed at the public safety issues of preventing over-service, over-consumption, and loss of control by the consuming public.
"In this case, the licensee ought to have known that offering a promotion for everything in the store at 50% off the original price would be a cause for concern,” Flood said.
When it came to the issue of due diligence in business operations, Flood said the business didn’t provide evidence of steps taken to prevent the sale of cannabis products at below minimum pricing requirements.
“Nor did the licensee provide any evidence of any procedures or systems in place to prevent such sales,” the ruling said.
It its submissions, the business said the illegal cannabis market continues to be significant and can be cheaper than government-regulated operations.
“This (the underground market) is much more likely to be a source of over-service and over-consumption than sales by licensees for less than the minimum pricing,” the decision said. “This is especially concerning as the grey market products may be tainted and are not as safe as the government-supplied products.”
However, while admitting the contravention, the business said government enforcement goals aren’t being achieved by pricing restrictions and disagreed that such restrictions are effective in preventing over-service and/or over-consumption.
“Based on the unchallenged evidence submitted to me as set out above, I find the contravention of failing to comply with the minimum pricing requirements for the sale of cannabis products, as alleged, has been proven,” Flood said.
She said first such contraventions can result in a one- to three-day licence suspension and/or a $1,000-$3,000 monetary penalty.
“In these circumstances, I find a $1,000 monetary penalty to be appropriate,” she said.
