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Researchers Look into Possibility of Treating Borderline Personality Disorder Using Psychedelics
Researchers are considering the possibility of using psychedelic drugs such as MDMA to treat Borderline Personality Disorder (BPD). BPD is a debilitating mental disorder that hinders an individual’s ability to manage emotions and leads to high impulsivity; it also generally negatively affects relationships.
People with BPD often have long-term feelings of emptiness and find it difficult to form a stable sense of identity. This can result in impulsive behaviors and self-destructive tendencies, including suicidal thoughts or self-harm. Intense fear of abandonment also leads to stormy and volatile relationships characterized by devaluation and idealization of partners.
Current treatment protocols for borderline personality disorder involve psychotherapy and, in some cases, medication. Sufficient treatment can help affected individuals overcome symptoms such as unstable personal image, intense mood swings and tumultuous personal relationships.
Although scientists don’t know the exact cause of BPD, data shows that the condition often overlaps with post-traumatic stress disorder (PTSD). Prior studies have found that around 25%–60% of PTSD patients meet the criteria for BPD as well. Research has also shown that MDMA or 3,4-methylenedioxy-methamphetamine can reduce PTSD symptoms.
However, some researchers note that there is little research into borderline personality disorder treatment and especially scant research on the effectiveness of MDMA against the condition. Brown University Clinical Psychology Fellow Ann M. Inouye and her colleagues ran a study exploring the possibility of treating borderline personality disorder with MDMA.
The research team interviewed two psychologists who specialize in treating BPD with traditional approaches and two psychologists with MDMA-assisted therapy experience. After meeting with the clinicians several times and discussing their experience with MDMA-assisted psychotherapy, the researchers found that MDMA-assisted therapy is similar to dialectical behavioral therapy (DBT).
DBT is a talk therapy for people who experience intense emotions such as BPD patients. This therapy is more focused on helping patients enhance their sense of self, develop emotional regulation in social situations and foster a fulfilling life. MDMA-assisted therapy also focuses on helping patients achieve peace and fulfillment, and find purpose in their lives.
According to the study authors, both treatments have therapeutic goals that are aligned. Although both BPD and PTSD patients cope with immense trauma, the trauma in borderline disorder patients often comes from emotional attachment or emotional invalidation issues.
Even, so the similarities between the two therapeutic approaches were enough that researchers say it could be worth exploring MDMA as a potential treatment for borderline personality disorder. They concluded that their study showed there is a need for more research into the potential benefits of MDMA-assisted therapy in borderline personality disorder treatment.
The rate at which various startups such as Seelos Therapeutics Inc. (NASDAQ: SEEL) are kickstarting R&D projects geared at commercializing psychedelics treatments suggests that these substances could be applied in the treatment of many more mental-health conditions beyond depression, PTSD and addiction.
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Watching it All Burn Down
Watching it All Burn Down
And Even the Classics Must Fall
Those of us who fondly remember the time before men wore women’s swimsuits often find ourselves dazed and speechless in the dystopian landscape of 2024. Our government has abandoned all pretense of both decency and Constitutional principles, preferring to prosecute political enemies while embracing radical loons and clownish causes. The crazy doesn’t stay in Washington, either; everywhere you go, you’re greeted with the stench of weed and the hideous fashions of idled protesters. Shameless displays of bad taste, foul language, and low-I.Q. behaviors are the norm, and to notice them only betrays your privileged bigotry and intolerance.
As the world thus heats up, we are sorted along both eternal and temporal lines; spiritual forces slice through every facet of our lives, demanding that we choose sides. We are wheat and tares, sheep and wolves, right and left—and ultimately, alive or dead. In the process, those of us who refuse the new normal have retreated to the few remaining pockets of biblical truth, traditional values, or relative sanity. For many, this refuge is faith; for others, it’s sports, school communities, or resort towns. There we draw strength to engage in the cosmic battle, soften the world’s edges, or—as an escape—find small beauties still unscathed by all this mess.
Running for refuge in our sacred spaces has become a dicey business, though. Like the human heart, none of our comforts are immune to the insidious creep of evil. Take faith, for example; more often than not, the local “relevant” or “inclusive” worship service is led by one of the many smiling wolves born in liberal seminary dens. Your buttoned-up childhood church—with its many old social connections and Handel concerts—must therefore be examined under the light of biblical discernment, or you risk unwelcome surprises.
Education has long been the playground for progressive ruin; but the wildfires now threaten even the once-inviolable classics. Many of us found in classical education a beautiful outpost, a hidden holdout amid civilization’s prevailing decline. Great minds, beautiful words, timeless wisdom—all gathered to rescue our dumbed-down generation of touch-screen brains. Yet, in a dismaying discovery, cultural Marxists are quietly building fires there, too.
I saw some small but growing embers at our own classical school—intermittent and familiar flickers. As the school courted the favor of city leaders, disciplinary issues and questionable partnerships emerged. I shared my concerns, which is all a parent can do. For that kind of vigilance, one earns flowery and reassuring speeches; there are always excuses—the demographics, the pressure, or the few success stories. Trouble seems unlikely to those who warm themselves in the innocent glow of small beginnings; it will be different this time!
To suspect such cozy little coals would ever cross their fire-proof boundaries seems unduly suspicious—and not very generous or inclusive. The new rhetoric makes a convincing Trojan horse: Isn’t there some beauty to be found in other voices? Isn’t it good to move beyond yesterday’s old, white men? Aren’t we truly responsible for elevating other people? What is good, true and beautiful can empower a new liberation; and as always, the left will reimagine and dismantle yet another formerly successful tradition.
In fact, a number of classical educators think that, under the spell of Latin and good literature, a bit of thinly-veiled progressivism won’t hurt. For these educators, the canon must be leveraged for a better kind of activism; the objective of classical learning has changed. Under their new model, impoverished backstories—and there are plenty— lend a bit of innocence to even the most incorrigible students; for their sake, the classics must be a little more accessible—and discipline a bit less punitive. Will this movie end like the others, or will I be surprised? How long will it take to destroy goodness and beauty—five years? Maybe ten?
Have you ever tried to warn someone that their shoelace is untied? Smart people will stop and tie it rather than endure an embarrassing face plant. It’s the same with all other wise warnings; to ignore them requires some level of pride or temerity. Our churches and schools embrace both vices, continuing a path already littered with damning evidence of its perils. For humanity’s great dilemmas, they have discovered a a nuanced approach, and a gentler justice—yesterday’s genius alloyed with modern insight. They think they’re making inroads into the culture, when in fact, the culture is making inroads into them.
Over the years, we’ve seen this same script played out in different settings, and often with greater consequence. We’ve seen the harbingers of evil—often looking very compassionate—develop into full-blown destruction. A once-vibrant community falls victim to subsidized neglect and abandoned properties. A once-thriving church calcifies into a progressive haunt. A once-admired school is dismantled by mediocre education majors. Some of our own relatives and friends grow colder and weirder by the year, hardly recognizable for their progressive transformations. In my neighborhood, a smart girl who wore frilly, smocked dresses through her entire childhood entered college as a he/him. We are surrounded by the walking dead.
So many old paths are refused, and so many warnings still go unheeded, but we are still here to mourn the losses. Familiar landmarks tug at our heartstrings: the old high school, the old church, our city hall—none are recognizable under their progressive makeovers. Once-trusted, conservative outposts have widened their perimeter with new voices, and now, even their rafters are smoking. Worse, you see your own friends and your own family playing in the black smoke at the edges, believing themselves comfortably distant from both the mostly peaceful and surely exaggerated destruction. Yet soon enough, they, too are claimed by the rising flames.
Every now and then, though, we must step back, take a breath, and watch the unfolding inferno from a distance. When, despite our many efforts and supplications, beloved settings finally go up in smoke, we must look around and see a faithful remnant—however unimpressive its numbers— that stands apart from the prophesied destruction. Civilization burns, but we will not. The world’s goodness and beauty may melt in the flames, but the truth that framed it will not. We take comfort in an eternal promise but still grieve the smoldering scene, watching in horror as it slowly burns down, together.
Image Mark Agopov
1984 vs Brave New World – How Freedom Dies
1984 vs Brave New World
– How Freedom Dies
The following is a transcript of this video.
“If you want a picture of the future, imagine a boot stamping on a human face – forever.”
George Orwell, 1984
George Orwell’s writings have experienced a spike in popularity over the past several decades and for a good reason – modern societies are becoming ever more like the dystopia Orwell depicted in his novel 1984. Whether it be mass surveillance, the incessant use of propaganda, perpetual war, the manipulation of language, or the cult of personality surrounding political leaders, many consider Orwell’s novel to be prescient. While the West remains freer than the dystopian society of 1984, the trend of more and more power being concentrated in the hands of politicians and bureaucrats does not bode well for those who favour a free society. Orwell believed that the totalitarianism he portrayed in his novel was a distinct possibility for the West and at times he went as far as to suggest that it may in fact be inevitable. Or as he wrote:
“Almost certainly we are moving into an age of totalitarian dictatorships.”
George Orwell, Complete Works – Volume XII
In this video we will look at the cause of Orwell’s pessimism, focusing on two trends that increase the risk of a totalitarian future – the movement toward collectivism and the rise of hedonism. We then contrast Orwell’s views with those of another author of dystopian fiction – Aldous Huxley.
Collectivism is a doctrine, central to several ideologies, in which the goals of a certain collective, such as a state, a nation, a socio-economic class, an ethnic group, or a society, are given precedence over the goals of individuals. Socialism, communism, nationalism, and fascism are all collectivist ideologies. Orwell believed that a pre-condition for the rise of totalitarianism was the widespread adoption of a collectivist mentality, and all the totalitarian nations of the 20th century were organized based on some form of collectivist ideology – in the Soviet Union and China it was communism, in Germany and in Italy, fascism.
Orwell’s view of the connection between totalitarianism and collectivism has proved puzzling as Orwell was a staunch leftist, a critic of capitalism, and a socialist. How could someone who favoured socialism, a collectivist ideology, at the same time write a dystopian novel which portrays a collectivist society in such a horrific manner? To understand his position, it must first be realized that Orwell did not consider capitalism to be a viable system, or as he explains:
“It is not certain that Socialism is in all ways superior to capitalism but it is certain that, unlike capitalism, it can solve the problems of production and consumption.”
George Orwell, Complete Works – Volume XII
Capitalism was such an inadequate system in Orwell’s mind, that like many other leftists of his day, he believed it was on its deathbed and would soon be replaced by some form of collectivism. He saw this as inevitable. The issue for Orwell was what type of collectivism would take its place.
“The real question…is whether capitalism, now obviously doomed, is to give way to oligarchy [totalitarianism] or to true democracy [democratic socialism]”.
George Orwell, Complete Works – Volume XVIII
Following the death of capitalism Orwell hoped that democratic socialism would rise in the West. Democratic socialists, like Orwell, advocated for a centrally planned economy, nationalization of all major industry, and a radical decrease in wealth inequality. They were also strong supporters of civil liberties such as freedom of speech and freedom of assembly, which they hoped could be maintained in a society which would largely deprive people of their economic freedoms.
The problem, however, which Orwell and other socialists had to grapple with, were the lack of examples, past or present, of any country successfully adopting democratic socialism. Furthermore, when a government rids a populace of its economic freedom, the destruction of civil liberties tends to follow. For a centrally planned economy is rife with corruption, waste, and mismanagement and so for a government to maintain power as it parasitically saps wealth and resources from a populace it must limit their ability to speak out and protest. To make matters worse, all the states that had turned to collectivism in the first half of the 20th century, such as Nazi Germany and Soviet Russia, adopted what Orwell called oligarchical collectivism, not democratic socialism.
Oligarchical collectivism is a totalitarian system in which an elite few, under the guise of a collectivist ideology, centralize power using force and deception. Once in power these oligarchs take away not only the economic freedoms of their citizens, a move which socialists like Orwell favoured, but also their civil liberties. Orwell was concerned that following the death of capitalism the possibility existed that the entire Western world would succumb to oligarchical collectivism. One of the main reasons for this fear was his recognition that hedonism was on the rise in the West, and a hedonistic populace, according to Orwell, is a populace ripe for the taking by totalitarians.
Hedonism is an ethical position which maintains that life’s ultimate goal should be the maximization of pleasure and the minimization of pain and discomfort. In an increasingly urban and consumerist West, Orwell believed that many people were structuring their lives in a hedonistic manner. A hedonistic lifestyle, according to Orwell, weakens people, it makes them feeble and incapable of mounting any resistance against those who desire to rule over a society with force. Or as David Ramsay Steele writes:
“Orwell thinks that any group which gives itself over to hedonism must ultimately become easy meat for fanatical ideological enemies, which are more self-sacrificing, more dedicated, and more remorseless. The real enemy is not the lover of pleasure but the fanatic who is against pleasure, and the former is conceived as defenceless in face of the latter.”
David Ramsay Steele, Orwell Your Orwell
The West, since Orwell’s death in 1950, has become more hedonistic, and most people have been indoctrinated to accept collectivism in one form or another, but this has not led the permanent entrenchment of oligarchical collectivism. Rather, Aldous Huxley, the author of another famous 20th century dystopian novel, Brave New World, may have had a better grasp of the way Western societies would become enslaved in the late-20th and early-21st centuries.
Huxley, like Orwell, was an anti-hedonist, but his aversion to hedonism differed from Orwell’s. Huxley’s main concern was that hedonism could be used as an effective tool to oppress a society because people will willingly forgo freedom so long as their appetite for pleasure and consumption is fulfilled. If a society is structured so that people can devote much of their time to pursuing pleasures, gratifying material wants, and even drugging themselves to escape from reality, then persuasion and conditioning, rather than coercive force, will be sufficient to exert extreme control over a society. Under such conditions most people won’t even notice the chains of servitude that slowly tighten around them, or as Huxley wrote:
“In Brave New World non-stop distractions of the most fascinating nature…are deliberately used…for the purpose of preventing people from paying too much attention to the realities of the social and political situation.”
Aldous Huxley, Brave New World Revisited
Neil Postman in his book Amusing Ourselves to Death, contrasts the differing fears of Orwell and Huxley:
“What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who wanted to read one…Orwell feared that the truth would be concealed from us. Huxley feared the truth would be drowned in a sea of irrelevance. Orwell feared we would become a captive culture. Huxley feared we would become a trivial culture…In 1984 people are controlled by inflicting pain. In Brave New World, they are controlled by inflicting pleasure. In short, Orwell feared that what we fear will ruin us. Huxley feared that what we desire will ruin us.” (Neil Postman)
Neil Postman, Amusing Ourselves to Death
The West, it seems, finds itself in a situation analogous to what Huxley feared. We live in a society that is drowning in distractions. Most people spend more time staring at screens than interacting with people in the flesh and blood, and popping prescriptions pills, or self-medicating with alcohol or illicit drugs, has become the normal mode for coping with any form of distress. Most people still believe the West is free and the overt physical coercion that Orwell thought would be required to enslave a society has so far proven unnecessary. Through endless distractions, diversions, and the easy availability of pleasurable and distracting experiences, many embrace their lack of freedom and worship the society which has made their hedonistic lifestyle possible.
“The world’s stable now,’ says the Controller in Huxley’s Brave New World. ‘People are happy; they get what they want, and they never want what they can’t get.”
Aldous Huxley, Brave New World
Before dismissing Orwell’s fears completely, however, it must be noted that Orwell was familiar with Huxley’s position, and he did not deny that the hedonistic society Huxley feared was a possibility. But he saw it as a temporary stage creating the ideal conditions for a more brutal regime to seize control and impose its will on a society composed of weak and apathetic men and women. Whether Orwell will be proven correct remains to be seen, but as was revealed in the first few years of this decade, if a societal crisis emerges, most people will accept the more brutal form of totalitarianism that Orwell feared. So perhaps all that is missing to throw us permanently into the dystopian world depicted in 1984 is one more major social crisis.
Further Readings
© 2024 Academy of Ideas
IRS 280E: Cannabis Taxes and Case Law
As small businesses across the United States prepare for tax season, cannabis businesses grapple with staying compliant with the confusing state of cannabis tax law.
Like any business, a licensed cannabis enterprise is subject to taxation and must pay all applicable state and local sales taxes, state and local business/franchise taxes, payroll taxes, state corporate income taxes, and even federal income taxes.
Unlike other businesses, cannabis companies can’t reap benefits in the federal tax code. Most businesses “write off” a wide variety of expenses. These expense deductions lower a business’s income and taxes due. Cannabis businesses cannot deduct these expenses and end up paying substantially more taxes than standard businesses.
This discrepancy is just one of many that cut into the profits of cannabis businesses, and highlights the problems that arise due to cannabis being legal in many states, but illegal at the federal level.
What is a Write-Off?
A tax “write-off,” is any necessary and ordinary business expense. Expenses are deducted from a business’s income and therefore lower the taxable income due on their tax return. In the U.S., businesses can write off a wide range of expenses, including salaries, benefits, contractor payments, travel, meals, rent, insurance, and utilities.
Yet, due to the federal illegality of cannabis in the U.S., cannabis businesses cannot deduct standard business expenses, according to Internal Revenue Service Section 280E. This leads to an unusually high effective tax liability that can significantly impact profitability.
IRS Section 280E
Section 280E of the Internal Revenue Code forbids businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of a Schedule I substance, including cannabis. Section 280E prevents cannabis business owners from taking deductions for business expenses that nearly every other type of business can benefit from, except for expenses directly related to cost of goods sold (COGS).
Without the ability to write off general business expenses outside of COGS, cannabis companies are saddled with enormous tax liabilities that shrink profit margins. COGS refers to costs that are directly related to producing goods, including the cost of the materials and labor required to create the goods. It does not include indirect costs related to distribution, sales, marketing, and other overhead that businesses face.
The History of 280E
According to Attorney Lauren Vázquez, Legal Department Chair for Oaksterdam University, the history of IRS Section 280E dates back to the early 1980s, directly tied to a landmark case and subsequent Tax Court opinions.
Edmondson v. Commissioner (1981)
Section 280E was enacted by Congress in 1982 as a response to the case of Jeffrey Edmondson, a drug dealer who claimed deductions related to his illegal drug trafficking business. In the case of Edmondson v. Commissioner, 42 T.C.M. (CCH) 1533 (1981), the Tax Court allowed certain deductions for business expenses claimed by Edmondson, who was engaged in the sale of amphetamines, cocaine, and cannabis. This decision highlighted the possibility that drug dealers could use the tax code to deduct expenses related to illegal activities, which Congress found undesirable.
Internal Revenue Code Section 280E was meant to counteract the implications of the Edmondson case. This section specifically disallows deductions and credits for amounts paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of Schedules I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any state in which such trade or business is conducted.
IRS Opinions and Guidance
The IRS has issued guidance to clarify the application of Section 280E in light of state laws legalizing cannabis for medical or recreational purposes. Here, Vazquez outlines case law that contributes to interpretation of 280E:
CHAMP, Inc. v. Commissioner (2007)
Californians Helping to Alleviate Medical Problems, Inc. (CHAMP) v. Commissioner, 128 T.C. No. 14 is often cited in discussions of 280E.
CHAMP operated a facility that provided caregiving services, including medical cannabis, as part of its care packages for individuals with debilitating diseases like HIV/AIDS. In addition to distributing marijuana, CHAMP offered its members a range of other services, such as meals, yoga classes, and various forms of therapy. The Tax Court’s decision in the CHAMP case was particularly noteworthy for a couple of reasons.
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Separation of Business Activities. The court recognized that CHAMP provided two distinct services: (1) the sale of medical marijuana and (2) caregiving services. This differentiation was critical because it allowed CHAMP to argue that not all of its business expenses were subject to the limitations of Section 280E.
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Deductibility of Non-Marijuana-Related Expenses. The court allowed CHAMP to deduct expenses related to its caregiving services, which were not “trafficking in controlled substances” and thus not subject to the disallowance of deductions under Section 280E. This included expenses for the non-marijuana-related services provided to its members.
The CHAMP case demonstrates that a business involved in both the sale of cannabis and the provision of other, legally permissible services might be able to segregate its expenses and deduct those not directly tied to the trafficking of controlled substances. However, the application of these principles is highly fact-specific, and businesses attempting to navigate this area must carefully document their activities and expenses.
Other Relevant Rulings
Olive v. Commissioner (2012)
Context: A California medical cannabis caregiver collective sought to deduct business expenses.
Issue: Could expenses related to the dispensary operation be deducted despite Section 280E?
Holding: No, Section 280E prohibits deductions for businesses “trafficking in controlled substances,” even if legal under state law. However, cost of goods sold remained deductible.
Canna Care Inc. v. Commissioner, T.C. Memo (2015)
Issue: The Tax Court addressed the issue of whether a medical cannabis dispensary could deduct business expenses, such as rent, salaries, and utilities, from its gross income.
Holding: Under IRC Section 280E, the IRS disallows such deductions for businesses engaged in trafficking controlled substances that are prohibited by federal law, even if such activities are permitted under state law.
Martin Olive v. Commissioner (2015)
Context: This was an appeal of the 2012 Olive case mentioned above.
Issue: Did the Ninth Circuit uphold the Tax Court’s decision regarding expense deductions?
Holding: Yes, the Ninth Circuit affirmed the earlier ruling, highlighting the applicability of Section 280E to the caregiver collective’s operations.
Patients Mutual Assistance Collective Corporation v. Commissioner (2018)
Context: Harborside Health Center, a California medical cannabis dispensary, challenged Section 280E.
Issue: Can businesses legally selling controlled substances deduct various business expenses?
Holding: No, Section 280E generally disallows such deductions even for legal operations. The case also addressed inventory valuation methods.
Alterman & Gibson v. Commissioner (2018)
Context: This case involved partnership income related to a marijuana business.
Issue: Does Section 280E apply to partners’ income from such businesses?
Holding: Yes, Section 280E limits deductions for partners involved in businesses trafficking in controlled substances.
Consult a Cannabis Tax Professional
Taxation is an area of compliance where business owners can benefit from the advice of experts and should find tax professionals experienced with IRS 280E. They can help set up the business’s accounting, bookkeeping, and chart of accounts to maximize the legal expenses and prepare to defend an IRS 280E audit.
Attorney Dale Schafer is one of these experts. Schafer, a faculty member of Oaksterdam University’s legal and compliance department, has a long history of helping cannabis businesses navigate the ever-evolving business landscape.
Based in the foothills of Northern California, Schafer works with a firm of accountants and Enrolled Agents who do cannabis-specific tax preparation and defense for cannabis businesses.
“I deal with it on the daily,” he says. “IRS Code 280E has a history that is now changing which makes it even more difficult to predict how tax returns need to be dealt with.”
Learn more about IRS 280E and the unique facets of operating a cannabis business in Oaksterdam University’s Business of Cannabis Certification Course.
Kelowna cannabis store fined $7,000 for failing to check ID
It was an expensive Valentine’s Day for one cannabis store in Kelowna when a judge ordered them to pay a $7,000 fine for an employee forgetting to check ID.
Kiaro Cannabis in Kelowna was subject to a targeted inspection in July 2023 in which an underage agent was sold a package of cannabis gummies. The employees on duty did not ask for the minor agent’s ID or their age.
In rendering their decision, the general manager of the BC Liquor and Cannabis Regulation Branch (LCRB) ruled that store management did not take proper actions to ensure staff were properly checking ID, leading to the decision to implement the penalty of a $7,000 fine.
For a first offence of this type, which was the case here, BC has a range of penalties, such as a licence suspension for seven to eleven days and/or a monetary penalty of $7,000-$11,000.
Kiaro operates four Cannabis retail stores in BC, including the Kelowna location, as well as Vancouver, Port Moody, and Victoria.
BC’s Minors as Agents Program (MAP) utilizes young people under the age of 19 to test if cannabis and liquor stores in BC are checking IDs. The program works with two adult agents and one minor. One adult agent first enters the store to assess if it’s safe for the minor to enter. If deemed safe, the minor then enters the store and selects a product to buy.
If the purchase is made successfully, the minor agent then returns to a car where the second adult agent awaits to collect the product. At the same time, the first adult agent communicates the action to the store employees on duty.
In this case, the Branch alleged that the minor agent purchased a five-pack of Strawberry Mango SOURZ by Spinach for about $7. The store clerk, later identified as the manager on duty, sold the product to the minor.
In their defence, representatives for Kiaro discussed the chain’s internal policies for staff training and practices for checking ID. In their ruling, the Branch determined that the store had provided evidence that it had an adequate training program and an effective ID policy for teaching all its employees when and how to request ID. However, it also ruled that there was little evidence about how the policies are being implemented in the Kelowna store where the infringement occurred.
The store noted that the manager on duty who sold the cannabis to the minor was suspended without pay for five days and had a written warning added to their file.
Ultimately, BC determined that the store had not demonstrated due diligence in ensuring its policies were being properly taught and executed in its stores. The Branch also recommended that the licensee consider introducing a pop-up question on its point of sale system where an employee must answer yes or no to “have you asked for ID?” before being able to complete a sale.
The retailer may now apply for a reconsideration of this compliance order in accordance with BC law, within 30 days.
BC is sometimes more lenient in its rulings. In a case heard in 2023, it was found that a cannabis retailer was not responsible when an employee failed to check the ID of a customer. This was because the store demonstrated that it had an extensive training program in place.
While the employee was fired for their oversight, the retailer, Eggs Canna, did not have to face a $7,000 monetary penalty or shut down for seven days.
Related Articles
Cannabis stores in Canada evenly distributed across different neighbourhood types
A new study from researchers at the University of Waterloo and the University of Toronto says retail cannabis stores in Canada are evenly distributed across different types of neighbourhoods.
The study, which looked at retail data up to and including September 2021, showed that in Canada’s first three years of legalization, retail cannabis stores were evenly distributed across “materially deprived neighbourhoods but were more common in socially deprived neighbourhoods.”
These “socially deprived neighbourhoods” are characterized by more people living alone, which the study notes is more common in high-density urban areas than rural ones. Unsurprisingly, there were higher concentrations of cannabis stores in urban areas than in rural ones.
About 60% of cannabis stores were located in these “socially deprived neighbourhoods.”
“Although there are no clear data available on how retailers have decided where to establish a store, it is not surprising that more stores would be found in areas with more people living alone, particularly as these areas tend to have younger adults with higher levels of educational attainment and employment, as well as more individuals living in high-density housing. Large urban areas, such as Toronto, tend to have a greater proportion of people living alone than the national average, as well as higher levels of retail density.”
Also unsurprisingly, there were more stores per capita in provinces with a private or hybrid retail model, such as Alberta, Ontario, and British Columbia, than a public model like Quebec or New Brunswick (Note: New Brunswick began accepting a handful of private retailers in 2023).
The quantity and the location of retail cannabis stores have the potential to influence patterns of use and purchasing behaviour, argue the researchers. Unlike in the US, where there is evidence that cannabis stores were more likely to be located in low-income neighbourhoods, cannabis stores were more evenly distributed in Canada.
“In Canada, zoning regulations in most provinces allow for brick-and-mortar stores to be located where any other retail outlet could be located, provided some jurisdictional guidelines are followed,” write the researchers in their synopsis. “These regulations may result in the more equitable distribution across neighbourhoods which is driven by factors such as market demand, visibility, and consumer convenience.”
The study shows that the number of cannabis stores in Canada more than doubled from October 2020 to September 2021, from 3.7 per 100,000 individuals age 15 and up to 8.0 per 100,000 individuals age 15 and up.
The researchers conclude that as the legal cannabis market in Canada continues to grow, “it will be important to continue to monitor the distribution of legal cannabis stores to determine if the patterns remain the same or change over time. This is particularly true in terms of the greater distribution of stores in more socially deprived neighbourhoods as increased exposure may have implications for cannabis use. Future research should also examine the impact of cannabis stores in terms of the balance between displacing the illicit market without promoting greater consumption.”








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