BC cannabis store's half off sale violated LCRB rules, ended with a $1K fine

A cannabis store in the BC Interior has been handed a $1,000 fine for holding a 50% off sale on all its products this spring.

A recent decision published by the Liquor and Cannabis Regulation Branch (LCRB), says an inspector received a complaint about Fresh Cannabis in Revelstoke on April 22, 2024.

According to the decision, the half off sale violated the government’s rules around minimum cannabis prices.

Three days after the complaint was received, an inspector attended the store to determine if the price slash was in place.

“Inspector A asked about four specific products and the staff person confirmed their sale prices were lower than their list prices,” the decision said.

“At that time, Inspector A was unable to confirm how much the Licensee had paid for each of these products as the Licensee’s purchase documentation was not available.”

On April 29, the inspector requested for documentation on inventory, sales records, Health Canada Compliance reports and cannabis purchase records.

After investigating, the inspector found that certain products at the store were being sold below the price that the licensee paid to the government for the cannabis products and the wholesale price of the cannabis products.

Prices for provincially licensed products are set by the LCRB and are meant to prevent over-service, over-consumption and “loss of control by the consuming public,” the decision said.

“In general, the price of cannabis must not be so low that it is likely to lead to over-consumption or resale for profit,” it added.

The licensee admitted to the contravention but claimed due diligence in an effort to avoid a $1,000 fine or a one day license suspension.

However, the decision noted that the licensee did not provide evidence in taking steps to prevent this contravention from happening.

“Based on the submissions made to me, and the lack of any evidence of due diligence, I find the defence of due diligence does not apply and is not available to the Licensee,” said Dianne Flood, who wrote the decision.

The licence was ordered to pay the $1,000 by Nov. 23, 2204, however, a quick google search shows that the business is now permanently closed.