Is the Canadian medical marijuana industry becoming corrupted?
After months of unsuccessful attempts to obtain consensus from the Canadian Medical Cannabis Industry Association (CMCIA) to govern the medical cannabis industry, Tilray (one of Canada’s leading licensed producers of medical marijuana) has ended its relationships with CMCIA and will instead spearhead the establishment of the Canadian Medical Cannabis Council (CMCC).
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“We are tremendously disappointed to end our relationship with CMCIA but we have lost confidence in the association's ability to effectively define and enforce standards of behavior for our industry,” said Tilray CEO Greg Engel in an issued release.
As our sister brand Business Review Canada recently reported, the medical marijuana industry in Canada seems to have a touch of corruption.
The CEO of Nanaimo medical marijuana producer Tilray believes that due to a lack of regulation in the industry, doctors are being prompted to accept kickbacks from other producers when they refer patients or issue medical documents.
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“The practice of providing physicians with financial incentives for these activities not only represents a violation of the professional standards by which physicians must abide, but also brings the entire Marijuana for Medical Purposes Regulations (MMPR) regime its patients into disrepute,” the company stated.
It’s not surprising that if kickbacks prove to be happening and continue to take place that the entire industry goes up in smoke. Already believed by many to be an unnecessary and illegal practice, the last thing the medical marijuana industry needs is a scandal. And if one happens, many stand to suffer.
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From a financial point of view, executives could stand to suffer if laws aren’t being followed. Due to the nature of the business, it would appear that everyone in connection with the industry should start following the code of ethics before it’s too late.
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