Ontario’s government has announced plans to significantly expand enforcement against illegal marijuana retailers, revealing that approximately 30% of all cannabis sales in the province continue to occur through unauthorized businesses despite the availability of nearly 1,800 licensed stores.
The proposed changes, announced Monday by Attorney General Doug Downey, would give the Alcohol and Gaming Commission of Ontario new authority to inspect unlicensed storefronts, seize illegally sold marijuana products and equipment, and impose administrative financial penalties. The expanded powers would also apply to unlawful online marijuana retailers.
The measures are expected to be included in an upcoming package of legislative changes, although the government has not announced when the legislation will be introduced or specified the financial penalties that could be imposed.
“Illegal cannabis retailers that operate outside the rules undermine the businesses that play by them and contribute to Ontario’s strong economy,” Downey said. He added that the changes are intended to strengthen enforcement, protect consumers and ensure fair competition for businesses operating within the regulated market.
The government’s estimate that illegal sellers account for approximately 30% of provincial marijuana sales highlights the continuing presence of an unregulated market more than eight years after Canada legalized recreational marijuana nationwide in October 2018.
Ontario officials say unauthorized retailers create unfair competition for licensed businesses that comply with provincial regulations, while marijuana products sold outside the regulated system may not undergo the same testing and quality controls required of legally distributed products.
Finance Minister Peter Bethlenfalvy said the proposed enforcement measures would help protect legitimate businesses while supporting consumer confidence. Dr. Karin Schnarr, registrar and chief executive officer of the Alcohol and Gaming Commission of Ontario, said the agency looks forward to working with law enforcement partners to increase action against illegal retailers.
The commission currently oversees licensing and regulation of Ontario’s private marijuana retailers, along with alcohol, gaming and horse racing. The proposed legislation would expand its responsibilities to directly address unauthorized marijuana storefronts and online operations.
