Federal Court upholds C$250,000 cannabis penalty against Ghost Drops
The Federal Court upheld C$250,000 in penalties against cannabis marketing company Ghost Drops for unlawful promotion and event sponsorship. Health Canada had reduced the penalty from C$500,000 after reviewing two notices tied to an all-ages event in Pickering.
🇨🇦 Pickering, Ontario · Ontario, Canada
Fine
CAD 250,000
The Federal Court upheld penalties totalling $250,000 imposed on a cannabis
marketing company for unlawful cannabis promotion and event sponsorship.[1]Health Canada issued Ghost Drops two notices of violation in March 2024 over
non-compliant promotion and sponsorship at an all-ages event where young people
were present.[2]The notices initially carried combined penalties of $500,000.[2]Ghost Drops requested a review, completed in March 2025, that found it had
committed the violations and reduced the total penalty to $250,000.[2]Health
Canada said the notices were the first administrative monetary penalties it had
imposed under the Cannabis Act.[2]
Ghost Drops argued that Canada’s cannabis marketing restrictions unfairly
limited its freedom of expression and ability to compete.[2]Ghost Drops said
the event was open to the public and included promotional displays from several
cannabis companies in an age-gated area.[2]Ghost Drops said it believed it
had not engaged in rule-violating activities.[2]
The Law360 capture gives 4 November 2026 as its publication date but no separate date for the Federal Court ruling, so that date is used as the incident date.
Only Law360's accessible opening paragraph covers the Federal Court ruling; StratCann's account concerns the earlier notices, penalty review and court challenge.
The cited pages provide no event-specific photograph or video of the hearing or Haunting of Hexwood. The original penalty of $500,000 was reduced to $250,000 on review; the final amount is recorded.
Left out, as its quotation was not found in StratCann: Ghost Drops filed a legal challenge on April 4, 2025, over Health Canada's penalties for alleged breaches of cannabis marketing rules.
Left out, as its quotation was not found in StratCann: Ghost Drops' notice of application identified Haunting of Hexwood, held on November 3, 2023, in Pickering, Ontario, as the event at issue.
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