In a draft guidance issued for the consultation, Health Canada highlighted recent police raids and arrests at production sites where people were using licenses to “cover and support large-scale illegal production and sale”.
The move comes as Canada tries to fix its ailing pot market, where illegal producers sell more annually than hundreds of licensed cultivators, even over two years after the country became the first major nation to legalize weed in 2018.
Households spent more than C$3.1 billion ($2.45 billion) buying non-medical pot from illicit channels last year versus C$2.9 billion of legal purchases, according to Statistics Canada data.
“Abuse of the medical purposes framework undermines the integrity of the system that many patients and health care practitioners rely on to access cannabis to address their medical needs,” Health Canada said in the draft document.
Reuters first reported the news earlier on Monday.
The draft guidance for the first time sets out factors that the regulator may consider in refusing or revoking a registration for "personal production". Factors include authorization of unjustified amounts and "criminal activity and/or diversion of cannabis". (Graphic: Black markets plague Canadian cannabis, )
In January, Ontario Provincial Police seized over 180,000 cannabis plants and numerous vehicles and firearms by raiding illegal cultivation facilities, many of which exploit Health Canada’s personal medical weed cultivation licenses.