2.6 Competitive and Prohibitive Relationships

Cannabis Representative Handbook

Policies

  1. The relationship between a cannabis supplier or cannabis representative and a cannabis licensee must be competitive in nature. This does not apply where the cannabis licensee is a subsidiary of the cannabis supplier under a separate company. Each company must be operated as a separate business in accordance with Schedule 2, Part 2 of the GLCR.
  2. A cannabis licensee or employee or agent of the licensee is not permitted to own, operate, or manage a cannabis supplier or representative. Where the cannabis licensee is a subsidiary of a cannabis supplier, the cannabis supplier may be a cannabis representative.
  3. An employee of a cannabis licensee is not permitted to be employed by a cannabis supplier or representative unless prior approval is obtained from AGLC. The employee cannot be an owner, supervisor or manager of the cannabis licensee.
  4. A cannabis licensee or employee of the licensee is not permitted to act as an advisor or provide financial support to a cannabis supplier or representative.
  5. A cannabis supplier or its representative cannot exclusively supply a cannabis licensee or group of cannabis licensees.
  6. AGLC may audit the business records of cannabis suppliers, cannabis representatives and cannabis licensees.

Guidelines

  1. Where the shareholders, directors, and staff of a cannabis supplier or their representative are related by blood or marriage to a cannabis licensee, AGLC will ensure that the nature of the relationship between them is competitive.
  2. If AGLC believes the relationship between a cannabis supplier or its representative and a cannabis licensee who are related by blood or marriage is not competitive, AGLC may request that the cannabis supplier, representative or cannabis licensee demonstrate that the relationship is competitive (for example, such belief may arise that if a cannabis supplier or representatives dealings with a cannabis licensee in question is notably greater than with other cannabis licensees).
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