The Alcohol and Gaming Commission of Ontario (AGCO) has issued a Notice of Proposal to suspend the Cannabis Retail Store Authorization for 12473291 Canada Inc., operating as Montrose Cannabis in Pickering, Ontario.
The seven-day suspension has been proposed following AGCO inspections that revealed significant breaches of the Cannabis Licence Act, 2018 (CLA) and its regulations.
In May, AGCO inspectors attended the retail store located at 1755 Pickering Parkway and determined that the store had been unlawfully using a third-party delivery service – a violation of regulations under the CLA, which require that cannabis be delivered only by the licence-holder or an employee who has successfully completed the required education and training.
During that inspection, evidence was also discovered that the store had been unlawfully selling its product to customers in Alberta, Manitoba, Northwest Territories, Quebec, and Yukon. Under the CLA, licensees are not permitted to sell cannabis outside of Ontario, which may also constitute a violation of the Cannabis Act (Canada).
Finally, Montrose Cannabis was also determined to have been selling cannabis in quantities exceeding the legal maximum of 30 grams of dried cannabis or its equivalent in a single transaction.
The AGCO says it worked with the licensee to educate them on their obligations and to bring them into compliance. Inspectors conducted a follow-up inspection last month, where it was determined that despite a commitment to coming into compliance, the licensee had continued to operate in violation of the CLA.
An establishment served with a Notice of Proposal has the right to appeal to the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
The AGCO says it will continue to take all appropriate actions to ensure compliance and that the safety of Ontarians is not jeopardized.
“Cannabis retail laws and regulations are in place to protect the public and ensure the legal cannabis market operates responsibly,” said Dr. Karin Schnarr, registrar and CEO of AGCO. “When licensees fail to meet their obligations, the AGCO will take decisive action to uphold the integrity of Ontario’s cannabis retail system.”
Nick Baksh, the founder of Montrose Cannabis, tells StratCann that retailers need more delivery options.
“Alberta and British Columbia allow cannabis retailers to offer parcel delivery, but Ontario lags behind in making cannabis accessible—particularly in rural areas. This gap is pushing consumers back to the illicit market. If the Ontario Cannabis Store (OCS) can ship products directly, why can’t licensed retailers?
“I’ve raised this issue with the Minister of Finance, the Attorney General, local policymakers, and even the mayor, but no progress has been made,” he adds. “Allowing licensed retailers to ship directly to customers would not only curb the illicit market but also enhance public health and safety while fostering healthy competition in the industry.”
If a cannabis retail licence is suspended, the store must post a sign about the suspension in a place where people can easily see it from outside the store.
The AGCO also recently issued a $100,000 fine to a retail chain for disallowed “data deals” that amounted to paying for shelf space.
This article has been updated to include comments from Montrose Cannabis.
Featured image via Google Maps.
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7-day suspension notice for Ontario retailer for third-party delivery service, selling cannabis outside province, more – StratCann
