Business
Ontario cannabis execs sound alarm over alleged pay-to-play retail scheme
Canadian cannabis producers and brands increasingly are, in effect, paying Ontario retailers for shelf space and other special treatment for their products, according to industry executives.
These executives allege the effective use of so-called slotting fees threatens the survival of hundreds of independently owned retailers and craft cultivators, who lack the money and resources to finance such pay-to-play schemes.
The monthly fee can amount to tens of thousands of dollars or more, according to one industry source who declined to be identified for competitive reasons.
Slotting fees, common for decades in traditional retail, are a relatively new phenomenon in cannabis in both the United States and Canada.
In Ontario, regulators prohibit producers and brands from paying retailers for favorable “material” treatment.
In June, the province’s retail regulatory agency noted that cannabis “licensees are not allowed to ask for or accept material inducements.”
Industry officials allege that, to get around such restrictions, some producers and brands are instead paying cannabis retailers for their sales data to ensure their products get special treatment in Ontario’s hotly competitive retail market.
Industry officials told MJBizDaily the workaround falls into a quasi-legal gray area, given that brands and manufacturers aren’t paying directly for prime shelf or display space or an exclusive sales deal involving their product.
It’s quasi-legal because data sales are allowed so long as the price is “fair market value.”
“It’s rampant in the industry,” Owen Allerton, owner of Highland Cannabis, an independently owned store in Kitchener, told MJBizDaily.
“Everyone knows data agreements are a smokescreen for pay-to-play, or listing fees. Multiple licensed producers have pitched us on it.”
Executives such as Allerton say the agreements involve the sale of store data detailing consumer product purchases, accessories and sometimes gift cards.
Brands and producers theoretically could use such business intelligence to gauge which products are popular – or which are duds – among cannabis consumers.
The allegations have not been proven, so MJBizDaily is not identifying specific manufacturers or brands.
Undercut competitors
Industry executives say the scheme works like this: Cannabis producers, or agencies representing them, pay stores for their consumer data.
In return, those stores hand over their data, in addition to providing preferential treatment, which might cover anything from prime shelf space, or any shelf space, to exclusivity in rare instances.
Critics say the scheme gives large producers and retail chains, which have the financial might to outmuscle smaller competitors, an advantage.
Allerton said chain stores are able to undercut smaller competitors with the help of data fee revenue.
Independent stores “can’t pay their bills if they price-match. It’s creating this crazy unfair advantage,” he said.
He suggested that 1,000-1,200 “independent” stores among Ontario’s 1,600-plus regulated marijuana retailers are at risk from the practice.
The Alcohol and Gaming Commission of Ontario (AGCO), which regulates cannabis retail in the province, “responds to information or complaints it receives, including ones related to the sale of data that is an alleged inducement,” a spokesperson for the agency told MJBizDaily via email.
“The AGCO holds all licensees to high standards of compliance.
“We will always work with licensees to help them understand and meet their regulatory obligations and will also take regulatory action as appropriate, including education, warnings, monetary penalties, and in serious cases, suspension or revocation of a license.”
What’s allowed
Earlier this year, the AGCO clarified its rules involving the sale of store data.
“Licensed retailers may enter into agreements with (licensed producers) for the sale of data for business intelligence purposes,” the AGCO stated in a June notice.
The agency added that it “expects that the fee charged by the licensee and paid for by the LP should be at fair market value.”
Some experts say the agency, in its attempt to clarify those rules, opened up a legal gray area.
“The AGCO said if you’re going to do a data program, it has to be a market ‘fair’ rate. They didn’t say what fair means, so there’s this giant gray area of interpretation for what ‘fairness’ might be for what you pay for this kind of arrangement,” Rachel Colic, a cannabis branding specialist based in Toronto, told MJBizDaily.
Colic, who co-chairs the National Cannabis Business Coalition, a national working group spearheaded by the Canadian Chamber of Commerce, also said data programs can be incredibly useful when they’re done well.
“But I think cannabis is struggling to do them well at this time,” she said.
“I think they’re being abused right now for sure, and that’s to the detriment of the entire industry. It means only the biggest, most-capitalized companies are getting a seat at the important tables.”
What’s not allowed
The AGCO’s June clarification also spelled out what would be viewed as out of bounds.
The agency said it enforces a general prohibition “on agreements for items, benefits, or services” between retailers and licensed producers.
“In other words, licensees are not allowed to ask for or accept material inducements,” according to the AGCO rules.
The ban also covers retailers, or their employees, receiving “any benefits” from a licensed producer “tied to the sales performance of any given product or brand.”
Another example of a prohibited activity includes “retailers receiving cash or cash rebates, product or product rebates, or price discounts from LPs in exchange for listing particular products at below-market prices.”
According to the AGCO, if a store or its employees are likely to change their behavior toward a cannabis producer or its product “after receiving an item, benefit or service,” then the arrangement could be considered offside.
How it works
A senior official at a medium-sized cannabis producer, who requested anonymity, explained how the data sale scheme generally works.
The official said cannabis producers will pay retailers “for the right to be in the stores” through a monthly fee for their data, based on the number of products, or SKUs, that are involved, and the number of stores where the products are sold.
From an LP standpoint, the official said, some producers have paid up to 100,000 Canadian dollars ($75,000) per month.
“The big LPs pay too much money and the small LPs can’t afford it. It’s unsustainable, because as the (large) LPs consolidate or go bankrupt, (this revenue) is going to disappear,” the person said.
“Because we don’t pay $100,000 a month, like larger LPs, (our products) get put on the sidelines,” the official said.
Small producer raises alarm
Gord Nichol, owner and master grower at North 40 Cannabis, a small cannabis producer in northeastern Saskatchewan, said he doesn’t believe most data sales are really about data.
“They’re buying up shelf space by sending money to these retailers, which has a double effect,” he said.
“It’s no longer an even playing field for the retailers or producers who don’t want to get involved in these data deals.”
Nichol said some stores have their budtenders promote products from certain companies, steering customers toward certain products.
Nichol said he has no intention of paying anyone to give his products special treatment.
“I’ve had a retail chain tell me that when my products are on their shelves, it slows down the sales of companies that are paying for shelf space, and they have to maintain those levels of sales to maintain their data sale revenue,” he said.
“I could sell twice as much product as I do if these imposed restrictions (data deals) weren’t there.”
Nichol said he doesn’t see a need for new regulations.
He said regulators should enforce the rules that already exist.
“It restricts our ability to get in front of the customers, and let the customers make the choices,” Nichol said.
“It’s the consumers that are losing out also, when these inferior products that basically don’t deserve to be on shelves, and they’re only there because of the financial intertwining of the data deals and shelf placement.
“It’s completely unfair to small producers and consumers.”
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
Agriculture & Life Sciences
Canada’s Cannabis Industry Urges Government to Support Growing Export Market
BuzzBuzz Cannabis Business News — 24 November 2025
Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.
Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.
Industry Calls for Streamlined Export System
Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.
“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”
He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.
“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”
Competitors Are Moving Faster
McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.
“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”
Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.
High Tide CEO: Canada Needs a National Export Strategy
Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.
“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”
He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.
Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”
Germany: A Key Market for Canadian Firms
High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.
“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”
Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.
Government Response Remains Limited
In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”
However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.
A Closing Window of Opportunity
With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.
As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.
And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
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