Illegal Pot Shops Capitalize on Supply Shortage: Retailer

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A lack of options when it comes to legal marijuana may be promoting business on the black market.

"You're seeing ads on the internet, you're seeing stores open, you're seeing people on the corner, and yet nothing is being done." said Dr. Lyle Oberg. "All of that is money that should be taxed."

Oberg represents the Flowr Corporation - a Kelowna based seller of both medical and recreational pot. He is also the former Finance Minister of Alberta.

He believes a shortage of legal cannabis products is funneling millions of dollars into black market trade, untaxed by the federal government. Doubly concerning to Oberg is the unknown quality of the unregulated products sold by unlicensed retailers.

"You don't know what you're getting in the pot. You don't know what herbicides are being used. You don't know what pesticides are being used, and you're inhaling it." said Oberg "That's pretty ridiculous from my point of view."

Legal sellers across Canada have continued to struggle with a lack of supply since marijuana was legalized in October. Oberg is calling on the government to crack down on black market operations and, in turn, secure tax revenue that can be reinvested into the legal market.