What is considered "illegal diversion" of cannabis products?

Answer: C — Selling or transferring cannabis outside of the regulated market

The concept of "illegal diversion" of cannabis products refers specifically to the unlawful transfer or sale of cannabis outside the regulated market. This means any transactions that occur without the oversight or permission of the appropriate regulatory bodies, such as the Oregon Liquor and Cannabis Commission, would be seen as illegal diversion. This includes selling cannabis to individuals who do not possess the proper licenses or transferring products to locations where it is not permissible. When cannabis is diverted outside the legal framework, it undermines the regulations designed to ensure safety, track product origins, and provide oversight regarding the responsible use of cannabis. Legal markets are intended to protect consumers and maintain public safety, and any actions that circumvent these regulations fall into the category of illegal diversion. On the other hand, storing excess inventory, transferring products for personal use, and discounting products within a licensed store do not necessarily constitute illegal activities under the same definition. For instance, maintaining inventory levels is typically a permitted practice as long as it adheres to regulatory requirements, and discounts can be part of promotional strategies allowed in the legal framework. Likewise, transferring products for personal use can occur under specific circumstances, depending on the regulations in place. Thus, those points are not categorized as illegal diversion.