Bill C-32 requires that cigarillos less than 1.4 grams cannot be flavoured or sold in packages of less than 20 units. Since the law doesn't affect cigars more than 1.4 grams, tobacco companies quickly took advantage of the loophole and put cigars weighing just over the required minimum weight on the market.
Oddly enough, with all the to-ing a fro-ing over C-32, nobody appears to have thought of this loophole.