National cannabis organization suspends operations, citing active illegal market

A national cannabis lobby group representing licenced producers and processors is suspending operations, citing challenges tied to the unregulated cannabis market.

The Cannabis Council of Canada says the decision reflects the headwinds facing the industry, as companies are challenged by financial pressures, complex regulations and the “highly active” illicit market.

The organization says these pressures have put a strain on the producers and processors it represents. 

The council’s president, Paul McCarthy, says the organization has been calling on Ottawa to establish a national strategy for eradicating the unregulated cannabis market.

McCarthy says the businesses the council represents generate billions of dollars in revenue, but the majority of them remain unprofitable.

He says the main reason most legal businesses in the sector are not profitable is that illicit producers are eating up market share while driving down prices.

This report by The Canadian Press was first published June 22, 2026.

By Lyndsay Armstrong | Copyright 2026, The Canadian Press. All rights reserved.