Ontario moves to give cannabis regulator new powers against unlicensed shops

The Ford government has proposed new tools for the Alcohol and Gaming Commission of Ontario to crack down on unauthorized cannabis storefronts. As proposed, the AGCO would be able to carry out inspections, seize illegal products and issue fines. The plan is not yet law.

Attorney General Doug Downey said illegal retailers "undermine the businesses that play by the rules." He also said unlicensed stores generate proceeds that support criminal activity and sell to minors.

Adam Vassos, president of the Retail Cannabis Council of Ontario, called the move long overdue. His council estimates hundreds of unlicensed stores have operated unchecked for years, "especially in Toronto where there has been no enforcement." Vassos said tests on illicit products, mostly done by the provincial government, found contaminants, pesticides and rat poisoning in some.

Cannabis can only be sold by AGCO-licensed stores. Residents who think a store is operating without a licence can contact the Toronto Police Service.

The province has not said when the legislation would be tabled or when enforcement would begin, and no government figure for the number of unlicensed stores has been released.