As the country moves closer to legalization, Health Canada is warning cannabis companies currently sponsoring music festivals and other events that they need to comply with advertising regulations or they could risk serious consequences.

Promoting cannabis brands is being viewed similarly to the way tobacco is promoted, which is essentially not at all. Cannabis companies are therefore rushing to promote their brand ahead of legalization.

The law will not take effect until October 17, the official date set for nationwide legalization.

Companies who do not comply with the law risk having their licensed suspended, fines as high as $5 million and possible jail time, said Health Canada in a public notice.

“Health Canada expects that all parties who are authorized to conduct activities with cannabis adhere to the highest standards of professional and ethical conduct, and at all times comply with the law,” said Health Canada. “The department is reviewing the actions of existing licensed producers and will be taking every possible step to bring them into compliance or prevent non-compliance with existing laws.”

The law prohibits any companies from linking cannabis to “glamour, recreation, excitement, vitality, risk or daring”.

Sponsoring music festivals and other similar activities such as fashion shows or art exhibiitions are “contrary to the government’s goal to protect public health and public safety, including the goal of protecting young persons and others from inducements to use cannabis…” the public notice said.

Aurora Cannabis Inc., one of the largest cannabis companies is currently holding a contest for tickets to 18 free concerts across Canada. Acts include City and Colour, the Sheepdogs, Sam Roberts and Kings of Leon. The company hopes that with some changes to the wording used to promote the contest that it will be allowed to continue.

“What we are hoping to do is certainly get out company name recognized as a participant in this sector while at the same time—and I can’t emphasize this enough—remaining in full compliance with those regulatory requirements,” said Cam Battley, CEO of Aurora Cannabis Inc.

Health Canada asked two other companies earlier this spring to remove promotional material on their websites for recreational products.