Legal dried cannabis products often inflate how much THC and CBD are actually contained in the dried flower, with some products containing 20% less THC than the label claims, according to surveys by two Canadian labs.
The Globe and Mail reported that Health Canada is reviewing complaints about inaccurate labelling of cannabis products and in July commenced a data collection program that compares products to their claimed potency, being the total percentage of THC by dry weight.
“If the program identifies deficiencies with legal products they analyze, appropriate compliance and enforcement actions will be taken to mitigate health and safety risks, as necessary,” Health Canada spokesperson Tammy Jarbeau told The Globe and Mail newspaper.
The review comes as two Canadian testing laboratories carried out testing on off-the-shelf cannabis flower products which found inconsistencies between the product's actual and labelled potency, according to a report by the newspaper.
Kelowna, British-Columbia-based Supra Research and Development tested 46 dried flower products and found none met the THC label point, with the majority coming in more than 20% below it.
A Vaughan, Ontario-based lab High North Labs surveyed 35 dried flower products and also found none met the stated potency. The lab said the majority of the dried flower products were at least 5% lower than the stated potency, with one product labelled 38% testing at 19%.
Earlier this year, a study that compared products sold in dispensaries in Colorado in the United States found that the THC potency was lower than stated, on average 23.1% lower but ranging as higher as 35.6% lower than the values reported on the product label.
Senior vice president of innovation and research and development at Moncton-based cannabis producer OrganiGram Holdings (TSX-V:OGI, NASDAQ:OGI) Borna Zlamalik told The Globe and Mail that there are Top 10 cannabis companies that are “absolutely” inflating their flower values.
According to Zlamalik, the issue of “potency spiking” has worsened in the past year as cannabis producers have sought to win over customers in the oversupplied market.
“I think there are some companies that have maliciously narrowed down their sample procedures to get the best flower,” he told the publication.
Multiple research reports have shown that THC potency is a significant factor in determining pricing for dried cannabis flowers, providing a financial incentive for cannabis producers to market high-potency THC products.
Other factors contributing to inaccurate product labelling include a lack of standardized testing protocols and limited regulatory oversight.
Canadian cannabis regulations do not set out variability limits for the amount of THC or CBD in dried cannabis when compared to the product’s label, however, Health Canada told The Globe and Mail it has taken initial steps to research what an “appropriate” THC variability limit for dried cannabis could be.
“The department is currently working with licence holders to address inspection observations and to ensure that the THC content value displayed on the label is representative of the cannabis product,” Jarbeau said.
Contact the author at emily.jarvie@proactiveinvestors.com
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