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Legal cannabis retailers in Ontario are welcoming new government enforcement measures against illegal pot shops, but many say stronger enforcement alone will not be enough. Industry leaders are calling on the Ford government to also modernize the legal cannabis market, making it easier and more appealing for customers to buy from licensed stores.
Ford Government Plans New Enforcement Tools
Ontario’s Ministry of the Attorney General announced this week that the Ford government plans to introduce new legislation targeting illegal cannabis sales. The proposed changes would give the Alcohol and Gaming Commission of Ontario new powers to conduct inspections, seize illegal cannabis products and equipment, and issue administrative monetary penalties.
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Omar Khan, a representative with High Tide — the parent company of retail chain Canna Cabana — said the new approach is significant. Under the proposed rules, the Alcohol and Gaming Commission could issue fines and seize products without the higher burden of proof required for criminal prosecutions. “They will, if this law passes, give additional powers via administrative law to the [Alcohol and Gaming Commission], where they can now go and issue fines and seize an illegal product,” Khan said.
However, Khan stressed that the new tools will only be effective if the commission receives adequate resources to enforce them. He also noted that any new illegal seller appearing near a licensed store poses a direct threat to legal businesses. Ontario currently has around 1,800 licensed cannabis retailers across the province.
Industry Calls for Modernization, Not Just Enforcement
Many legal retailers argue that cracking down on illegal sellers addresses only part of the problem. Mike Dunn, owner and founder of 1922 Cannabis in Toronto, said the real challenge is making the legal market more convenient and accessible. “People don’t buy illegally because they want to break the law. They buy because it’s easy,” Dunn said.
Some illegal vendors already offer late-night delivery, with products available by text message at any hour. In contrast, legal cannabis delivery in Ontario is restricted to between 9 a.m. and 11 p.m. Dunn’s store does offer bike courier delivery to compete on convenience, but he believes the regulatory framework needs to go further. “Enforcement can close doors. It can’t make the legal option easier,” he said.
Khan echoed that view. He pointed to other provinces as examples Ontario could follow. Alberta, for instance, allows temporary cannabis store licences at adults-only music festivals. Meanwhile, several other provinces permit cannabis retailers to sell snacks and other complementary products to boost revenue. Khan also raised the possibility of cannabis consumption lounges for drinks and edibles. “We hope and encourage the Ontario government to take a look,” he said.
A Long Road Since Legalization
Legal sellers also questioned why it took eight years after cannabis legalization for the government to bolster enforcement tools. When Canada legalized cannabis in October 2018, the legal market accounted for just 5.4 per cent of total purchases, according to the Canadian Press. Legal sales did not surpass illegal sales until the end of 2021.
Today, illegal cannabis retailers still account for roughly 30 per cent of cannabis sales in Ontario, according to the Ministry of the Attorney General. Earlier this year, Toronto’s executive director of municipal licensing and standards, Carleton Grant, said the city had not received adequate municipal funding to enforce rules against illegal stores.
Ontario NDP Leader Marit Stiles said she wants to review the full details before judging whether the new legislation will be effective. “They talk a lot before they come back to the legislature, but we need to see the details of what they’re proposing,” she said.
The proposed legislation has not yet been formally released. Ontario’s legislature is currently on a 21-week summer recess that began in June. MPPs are scheduled to return on October 27.
