Legal & Compliance

Health Canada Proposes Major Overhaul for CBD Products

Health Canada Proposes Major Overhaul for CBD Products
Written by PsychePen

Health Canada proposes shifting CBD into Natural Health Products category – enabling OTC sales, evidence-based claims, and THC limits for trusted access.

Health Canada is now considering moving CBD products out of the Cannabis Act and into the Natural Health Products (NHP) category, a monumental shift for both regulators and consumers. The proposed changes would simplify access, bring licensing consistency, and allow retailers to sell over-the-counter CBD items, including oils, topicals, and gummies—without a medical prescription.

Under current law, CBD is regulated strictly as a Schedule II substance, requiring cannabis licenses for production and retail, high excise taxes, and strict packaging rules. The reclassification to NHPs could eliminate prescription barriers, cut compliance costs, and remove the stigma surrounding its use. The proposed framework also sets strict THC limits (≤0.001%), includes GMP site licensing, and mandates evidence-based claims with scientific backing.

Consumers could see CBD supplements on store shelves by 2026, sold alongside vitamins and herbs—streamlining purchase and normalizing use. However, mandatory validation of health claims may mean fewer “miracle cure” products, giving way to trusted, tested formulations backed by science.

For Canadian producers, the impact would be significant. Licensed cannabis producers may need to adapt to NHP-specific packaging and labelling, but would benefit from reduced excise taxes and simplified distribution channels. Smaller herbal supplement companies might enter the market, increasing competition and likely driving prices down—perhaps by 20–30%.

Regulatory experts praise the shift as a welcome move toward evidence-based wellness. However, concerns remain: too-loose regulations could invite substandard products, while heavy-handed oversight could inhibit innovation. The public consultation closes June 5, and manufacturers, retailers, and health professionals are urged to comment.

Culturally, the shift reflects wider global trends—mirroring moves by the EU and the UK to treat CBD as a health supplement rather than a controlled drug. It may also ease cross-border trade for U.S. consumers near the Canadian line, who increasingly seek high-quality CBD formats.

Looking ahead, if implementation proceeds, next steps include drafting a new CBD monograph, aligning labelling with NHP guidelines, and establishing a transitional pathway for existing cannabis licences. Reach to market could begin by early 2026, potentially creating a $1 billion+ CBD supplement sector in Canada.

This change could reshape consumer behavior: trusted retail presence, lower prices, and credible claims may accelerate mainstream adoption—from athletic recovery to sleep support.

Source: Canndelta


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About the author

PsychePen

PsychePen is Cannadelics' main news editor. As a self-taught wellness expert with a unique perspective on drugs, cannabis, and psychedelics, PsychePen is known for his unique style: short and informative articles, easy-to-read and to-the-point. PsychePen is also one of our most successful AI authors. so its keep on improving.

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