The Ontario government says it intends to introduce changes to strengthen enforcement against illegal cannabis sales, including new tools for the Alcohol and Gaming Commission of Ontario.
The proposed changes, to be part of an upcoming package of legislative changes, would give the AGCO authority to conduct inspections, seize illegal cannabis products and equipment, and issue administrative monetary penalties. They are aimed at unauthorized storefronts and unlawful online retail operations.
The province says the changes would protect consumers and young people and promote a fair and competitive marketplace for the roughly 1,800 authorized cannabis retailers in Ontario. It says illegal retailers account for about 30 per cent of cannabis sales in the province.
The government says products sold outside the regulated system may not be subject to the same quality controls and testing requirements, and that illegal operations can generate proceeds that support criminal activity.
“Illegal cannabis retailers that operate outside the rules undermine the businesses that play by them and contribute to Ontario’s strong economy,” said Attorney General Doug Downey. “To help build the strongest economy in the G7 and protect Ontario from threats to our communities, we are proposing measures to strengthen enforcement, protect consumers and support a fair and competitive marketplace.”
“Ontario is taking action to increase enforcement against illegal cannabis stores and online retail operations that undermine the regulated markets. These proposed measures would help to ensure legitimate retailers can compete fairly while supporting consumer confidence and the local economy,” said Finance Minister Peter Bethlenfalvy.
“Ontario’s regulated cannabis market works best when licensed businesses are not forced to compete with illegal retailers next door and consumers are protected in a well-regulated marketplace. This new responsibility builds on the AGCO’s longstanding role to support a safe and responsible market, and we look forward to working alongside law enforcement partners to bring sustained action against illegal cannabis retail in the province,” said Dr. Karin Schnarr, registrar and chief executive officer of the AGCO.
