Ontario Moves to Bolster Enforcement Against Illegal Cannabis Sales Amid Calls for Modernization

Ontario’s government is preparing new legislation aimed at intensifying the crackdown on illegal cannabis sales, but legal retailers are urging officials to go beyond enforcement and modernize the province’s cannabis retail framework. The announcement comes eight years after legalization, prompting industry leaders to question the delay in strengthening regulatory tools. Mike Dunn, owner of Toronto’s 1922 Cannabis, emphasized that ease of access is the primary driver for customers turning to illicit sellers, stating, “People don’t buy illegally because they want to break the law. They buy because it’s easy.”

The proposed legislation, announced by the Ministry of the Attorney General, would empower the Alcohol and Gaming Commission of Ontario to inspect, seize illegal cannabis products and equipment, and issue administrative penalties directly to unauthorized sellers. While legal sales have grown, illegal vendors still account for about 30% of Ontario’s cannabis market, according to ministry figures. The legal market only surpassed illicit sales for the first time at the end of 2021, highlighting the persistent challenge of curbing unlawful trade

Retailers argue that simply closing illegal shops is not enough to shift consumer behavior. Many illicit sellers offer late-night delivery and frictionless ordering, services that legal shops are restricted from matching due to provincial regulations. Dunn noted, “Enforcement can close doors. It can’t make the legal option easier.” Retailers are calling for expanded delivery hours, consumption lounges, and the ability to sell related products like snacks to make legal cannabis more appealing

Omar Khan of High Tide, which operates the Canna Cabana chain, expressed cautious optimism about the enforcement measures but stressed the need for adequate resources and a more flexible retail environment. “We’re encouraged by this move,” Khan said, adding that Ontario should look to other provinces, like Alberta, which allows temporary store licenses for events. Ontario NDP Leader Marit Stiles also called for more transparency, saying, “We need to see the details of what they’re proposing.”

With the legislature on break until late October, the cannabis industry is watching closely to see if Ontario’s next steps will focus solely on enforcement or embrace broader reforms. OG Lab notes that the province’s willingness to revisit cannabis retail rules could set a precedent for more consumer-friendly and competitive legal markets across Canada