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Canadian cannabis industry reckons with inflated THC label claims

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Potency testing on store-bought cannabis flower by a Canadian laboratory has found THC levels significantly lower than the labeled value, sparking an industrywide conversation about how to address inaccurate THC claims.

Rob O’Brien, CEO and chief science officer of Kelowna, British Columbia-based licensed cannabis testing laboratory Supra Research and Development, shared the findings from his Canadian potency tests online.

O’Brien tested 46 different cannabis flower products, grown by 21 producers, in a variety of package sizes purchased from several different stores in B.C.

THC values for all 46 samples were lower than the labels claimed, ranging from 9% to 48% less THC than the label stated.

O’Brien’s findings come as the issue of inflated THC values has also been raised in the U.S. regulated cannabis industry, shining a spotlight on laboratories amid allegations that some labs report inaccurate levels of THC on behalf of the marijuana producers who hire them to test products.

O’Brien, for his part, has not revealed the names of the products he tested or the companies that produced them.

“I’m trying to help the industry, not to shame it,” he told MJBizDaily.

“But the problem is that the emperor has no clothes in this situation.

“And if we (aren’t) honest about that, everybody gets hurt worse in the end.”

O’Brien said he shared his results with Health Canada as well as B.C.’s provincial cannabis wholesaler.

Health Canada confirmed to MJBizDaily that it has received the report and said that “all issues and complaints brought to the department’s attention are taken seriously.”

“As Health Canada is in the process of reviewing the report, the department is not in a position to comment at this time,” a Health Canada spokesperson said in a statement.

THC inflation rumors

Labeled THC values in Canada have come under heightened scrutiny in recent years.

The metric is thought to be one of the key drivers behind purchases by cannabis consumers.

O’Brien told MJBizDaily he was motivated to buy cannabis, test the THC levels and share his results after hearing “a lot of talk that the THC values were inflated.”

“And this is damaging, not only to just consumer confidence, but (it) also undermines the quality of the Canadian cannabis industry,” he said.

Exaggerated THC values have been observed in the U.S. cannabis industry as well, with some state regulators cracking down on laboratories that inflate THC levels.

THC inflation has become an issue in ArkansasFloridaMichigan and Nevada.

The practice has sparked allegations that some cannabis companies go “lab shopping,” seeking out testing facilities with “a reputation for being easy to work with.”

In Canada, cannabis regulations specify an acceptable THC deviation limit of up to 15% from labeled THC values for marijuana extracts and topicals.

For edibles, THC values can deviate from the label by 15%-25%, depending on the potency of the edible. (Less potent edibles can have a higher level of deviation.)

For dried cannabis flower, however, the regulations “do not set out variability limits with respect to the amount of THC or CBD,” Health Canada confirmed.

“There is no variability limit for dried cannabis because, unlike cannabis extracts or edible cannabis products, dried cannabis is heterogeneous, which means that the amount of THC and CBD varies between different parts of the plant as well as between different plants within a lot or batch,” a Health Canada spokesperson told MJBizDaily.

What explains THC discrepancies?

O’Brien stressed that his testing doesn’t explain exactly why the actual THC values in the cannabis he tested were so different from the labeled values.

Still, he has a few hypotheses.

O’Brien said he has heard secondhand talk that some cannabis processors – who package marijuana products on behalf of cultivators without their own processing license – insist that those cultivators use specific labs for potency testing.

Rumor has it that those laboratories agree to issue certificates of analysis (COAs) showing guaranteed THC levels.

“And if (the laboratories are) willing to do that, they get the business,” O’Brien said.

“And if they’re not, if you’re going to do it accurately, well, that could be a problem.”

Jodi McDonald, president of licensed cannabis testing laboratory Keystone Labs in Edmonton, Alberta, said the lab has lost business as some cannabis testing clients have sought results showing certain levels of THC.

“In the early days, I would say, it didn’t really come up,” McDonald said.

“But in the last few years, it’s been more the conversation that we have with clients than usual.

“Honestly, we lost a lot of market share, because while we had a validated method that we trusted and have faith in, the clients couldn’t move product based on data that came from our lab.”

Another possibility that could explain the inaccurate THC values on labels, said Supra’s O’Brien, is that cultivators are finding “ways to game the system” by sending the most potent cannabis samples from a given batch for testing.

“If you’re sending top buds, and maybe you’re de-stemming those top buds before you send it to the lab, yeah, you’re going to get a higher COA,” he said.

“And if you’re using that one COA on every one of your packaged products, the smaller (packages) don’t have the 2-gram buds that have the high THC content – they have 0.3-, 0.4-gram buds.

“Those things are not going to be at the same level as the premium buds.”

Canadian cannabis production regulations potentially allow a single sample of marijuana to represent a large batch in lab testing.

The rules require THC and CBD testing “on a representative sample of each lot or batch of cannabis,” but they don’t specify the size of a “lot or batch,” Health Canada confirmed to MJBizDaily.

“It can be a football field-sized batch,” Keystone Labs’ McDonald said.

“However, the producing company defines a ‘batch’ is up to them.”

How to rectify the issue of THC inflation

Solving Canada’s apparent THC inflation problem could require action by multiple industry players.

Clearly, cannabis growers, processors and testing laboratories play a role.

Supra’s O’Brien believes provincial cannabis wholesalers – which are government-owned, in most cases – also need to be accountable for the marijuana they distribute.

The wholesalers, he added, are “also partially responsible for why we have this problem, because they’re now not buying product unless it hits certain thresholds of THC.”

Those THC requirements could incentivize growers to present lab results showing high THC content.

O’Brien also called for “better guidance from Health Canada,” the federal agency that regulates cannabis production.

Keystone Labs’ McDonald doubts the cannabis industry will regulate itself.

“There’s too much pressure for searching for higher THC values,” she said.

“So my belief is that it needs to come from the regulatory authority.

“But that change won’t come unless there’s consumer pressure to make a change.”

Source: https://mjbizdaily.com/canadian-cannabis-industry-reckons-with-inflated-thc-label-claims/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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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.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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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.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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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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