Business
Canada cracking down on words ‘soda’ and ‘cola’ on cannabis labels
Health Canada is asking federally licensed cannabis producers to stop using certain words on labels and in promotions for infused beverages, warning they could appeal to young people.
The words – “soda,” “cola,” “root beer” or “ginger ale” – do not comply with Canada’s strict labeling and promotions requirements for cannabis, according to an email obtained by MJBizDaily that was sent by Health Canada to companies producing the affected products.
Health Canada is requesting businesses to “cease all non-compliant promotion and labelling of cannabis,” the email reads.
The apparent crackdown could have a big impact on the increasingly popular carbonated cannabis beverage category, which accounts for almost 60% of all cannabis beverage sales.
About half of the best-selling carbonated cannabis beverages could potentially be affected, according to an analysis by Seattle-based market analytics firm Headset.
George Smitherman, CEO of the industry group Cannabis Council of Canada, is perplexed by Health Canada’s latest actions.
“The array of beverages available to adults in a store where kids cannot go has improved significantly, but many companies will be put out of business by these prohibitions on nomenclature that are not rooted in science,” he said in a phone interview.
Another industry executive, who requested anonymity, voiced concerns about how Health Canada’s move could undermine the marketing of infused beverages.
“It’s unclear to me what alternative labeling would satisfy Health Canada, yet also properly inform potential consumers of what kind of product is on offer,” the executive said.
Replying to queries from MJBizDaily via email, Health Canada acknowledged it is communicating with the cannabis industry “regarding beverages containing ‘soda’ terms in their name.”
Citing a policy statement on the Cannabis Act, the spokesperson said Health Canada’s decisions about whether a product is appealing to young people are made “based on the facts of each case and after considering a range of factors.”
Those factors include a product’s: shape, color, smell, flavor, name and how it’s presented to consumers.
“The terms ‘soda,’ ‘cola,’ ‘root beer’ and ‘ginger ale’ are considered potentially appealing to youth because they commonly refer to a soft drink, which is one of the examples set out as being prohibited under the policy statement,” the spokesperson said.
The email sent by the federal regulator to licensed producers stated, “It is Health Canada’s position that the use of certain terms commonly referring to a sweetened soft drink, such as ‘soda’, ‘cola’, ‘root beer’ or ‘ginger ale’ may result in the sale of cannabis with packaging/labelling that is prohibited.”
“If required, Health Canada may take enforcement measures to address non-compliance or mitigate risks to public health or public safety,” the spokesperson wrote.
The letter states that the Cannabis Act prohibits:
- The promotion of cannabis, accessories or any service where there are reasonable grounds to believe it could be appealing to youth.
- The sale of cannabis or accessories if there are reasonable grounds the package or label could appeal to young persons.
MJBizDaily asked Health Canada if the ban on the word “soda” extends to other products, such as dried herb and gummies.
The agency has not yet responded.
Market impact
Carbonated cannabis beverage sales have grown substantially in recent years.
In 2021, carbonated cannabis beverage sales amounted to approximately 22.7 million Canadian dollars ($17 million) in provinces tracked by Headset.
That figure jumped 70% year-over-year to CA$38.6 million in 2022.
Through the first five months of 2023, the products reached CA$22 million in sales, putting the category on pace to approach CA$50 million this year.
Headset monitors sales in Alberta, British Columbia, Ontario and Saskatchewan, which together account for approximately three-quarters of all legal sales of recreational marijuana in Canada.
Approximately half of the top 20 carbonated cannabis beverages in terms of sales between June 2022 and May 2023 had at least one of the prohibited words in their brand name, the Headset data suggests.
The three top-selling carbonated cannabis beverages in that time were:
- “Cream Soda,” an XMG-brand produced by Truss Beverage Co.
- “Cherry Cola,” produced by Sweet Justice, a brand by Electric Brands Inc.
- “Mango Pineapple Sparkling Drink,” by Truss.
Industry pushback
Smitherman of the Cannabis Council of Canada said industry officials are in communication with Health Canada over the move.
“We haven’t conceded this one,” he said.
“We have a very active beverage caucus group. We’ve been in a letter-writing frenzy back and forth with Health Canada, and we’re not ceasing in our efforts to press them to demonstrate what science is behind their actions.”
Smitherman said Canada’s rules leave legal businesses with too little leeway to define and differentiate products.
“It’s really galling that Health Canada has got this attention to picayune matters related to cannabis, which has got all this protective wrap around it, built in a context of precaution, and alcohol is a complete free-for-all,” he said.
The executive who requested anonymity said cannabis consumers expect to be able to purchase legal, infused beverages with common beverage flavors and characteristics, “like soda and cola.”
“Obfuscating these legal products simply benefits the illicit market, which makes competitive products that have no restrictions on naming or design elements, etc.
“This restriction imposed by Health Canada harms the ability of legal, regulated products to compete with illicit ones.”
Source: https://mjbizdaily.com/canada-cracking-down-on-words-soda-and-cola-on-cannabis-labels/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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