Consultation on Cannabis Tracking Rules

Summary#

Health Canada is asking for public feedback on possible changes to the Cannabis Tracking System Order (CTSO). The department wants to reduce duplicate or unnecessary reporting while keeping rules that stop legal cannabis from being diverted to the illegal market. Comments are open for 60-day until October 29, 2025.

What it does#

• Invites input on amending the Cannabis Tracking System Order (CTSO) to collect only the data needed to track cannabis through the legal supply chain.
• Seeks ways to reduce duplicate reporting and administrative burden, especially where federal reporting overlaps with other departments or with provincial/territorial reporting.
• Looks at simplifying or removing specific reporting items (Health Canada notes it already removed the monthly requirement to report the weight of plant trimmings).
• Asks for feedback on how inventory categories are used (for example, “other” product categories, and whether vegetative and whole plants should be separate).
• Will run a separate voluntary cost–benefit survey for reporting bodies to collect details on compliance costs. Any future regulatory proposal would be published again in the Canada Gazette, Part I.

Who's affected#

• Federally licensed cannabis producers and processors, including federally licensed cultivators, processors, and holders of medical sale licences who must currently report to the CTSO.
• Provincial and territorial regulators that report on distributors and retailers.
• Licensed distributors and retail stores that are tracked through provincial reporting to Health Canada.
• Small and medium-sized cannabis businesses are specifically mentioned as feeling the reporting burden.
• Consumers and the public indirectly, because changes affect how the legal supply chain is monitored.
  If a group’s role in reporting isn’t clear from this summary, the original notice lists reporting bodies and examples.

Why it matters#

• Less paperwork could lower costs and save time for licensed producers, distributors, and provincial regulators.
• Any change must still protect public health and safety by preventing legal cannabis from being diverted to the illicit market. That is the main goal Health Canada wants to preserve.
• Changes to how products and inventory are reported could affect business record systems and how provinces run retail frameworks.
• This is a consultation, not a new law. Feedback submitted by October 29, 2025 will help shape any formal regulatory proposal.