News

Ghost Drops fights advertising laws

Published on May 16, 2025 by Pat Bulmer

Photo: Contributed

Laws restricting how the cannabis industry can promote itself are being challenged.

Ghost Drops claims Health Canada’s restrictions on advertising and promotion violate the Charter of Rights and Freedoms — “specifically the right to freedom of expression and the ability to engage in meaningful, competitive commerce,” the company said in a news release.

Ghost Drops says it was fined $500,000 by Health Canada after the agency received complaints about the Toronto company’s marketing practices.

“The brand maintains that these accusations are not only exaggerated but highlight the disproportionate enforcement facing innovative industry leaders,” the company said in a news release. “The brand maintains it is a victim of arbitrary enforcement.”

Lawyer and grower Kirk Tousaw has taken up Ghost Drops’ case. He has argued various cannabis cases over the years and was the lawyer for TobaGrown’s Jesse Lavoie, who fought Manitoba’s ban on home-grown cannabis.

“I think it is clear that the marketing restrictions violate the commercial free speech rights protected by section 2 of the Charter,” said Tousaw, in the release.

Ghost Drops plays up its pre-legalization origins, which might make it an easy target, the company says.

“Ghost Drops is the first cannabis business to receive a regulatory fine of this magnitude,” the company said.

“We were a legacy cannabis brand which transitioned to a legal cannabis business. We employed dozens of people, generated millions in tax revenue for our government while helping convert thousands of legacy consumers to legal taxpaying consumers,” said company president John Dean Durante.

The company says it’s just doing what businesses in other industries do.

“The brand maintains there is nothing unconventional or unprecedented in their marketing tactics and insists it has adopted proven strategies utilized by major CPG (Consumer Packaged Goods) companies.

“Common marketing campaigns focused on customer experience, data analysis, and optimization, while leveraging digital marketing channels like SEO, social media, email marketing, including influencer marketing and affiliate programs. These are all common practices afforded to 99% of businesses and are essential strategies required to succeed in commerce.”

Health Canada has a list of do’s and don’t’s for the cannabis industry on its website, but the don’t list is far longer.

“Unless otherwise authorized under the Act, it is generally prohibited to promote cannabis, a cannabis accessory or any service related to cannabis,” the agency sums up.