The Ontario government recently announced proposed measures to crack down on illegal cannabis storefronts, a move being welcomed by many of the estimated 1,800 legal retailers in the province.
The changes, which were announced on Oct. 19, would give the Alcohol and Gaming Commission of Ontario the authority to conduct inspections at suspected illegal storefronts, seize contraband products and issue monetary penalties once approved.
The enhanced enforcement powers come amid data from the Ministry of the Attorney General which shows that an estimated 30 per cent of the cannabis retail landscape in the province is still made up of illegal retailers, eight years after legalization.
“I’m just happy that we’re moving from reactive to proactive,” said Paul Macchiusi, owner of Minerva Cannabis, an independent cannabis retailer located near Bathurst and Dupont streets in Toronto.
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Proposed changes would protect consumers and promote a fair and competitive marketplace
October 19, 2026
TORONTO — The Ontario government intends to introduce changes to strengthen enforcement against illegal cannabis sales, further protecting consumers and young people and promoting a fair and competitive marketplace for the approximately 1,800 authorized cannabis retailers operating across the province. The proposed changes, which will be part of an upcoming package of legislative changes, would give the Alcohol and Gaming Commission of Ontario (AGCO) new tools to address unauthorized cannabis storefronts and unlawful online retail operations, including the authority to conduct inspections, seize illegal cannabis products and equipment and issue administrative monetary penalties.
“Illegal cannabis retailers that operate outside the rules undermine the businesses that play by them and contribute to Ontario’s strong economy,” said Attorney General Doug Downey. “To help build the strongest economy in the G7 and protect Ontario from threats to our communities, we are proposing measures to strengthen enforcement, protect consumers and support a fair and competitive marketplace.”
Illegal cannabis retail activity undermines the integrity of Ontario’s regulated cannabis marketplace and creates unfair competition for authorized retailers who comply with provincial requirements. These proposed changes would help reduce illegal activity, promote compliance and support a more level playing field for businesses operating within the legal cannabis market.
Cannabis products sold outside the regulated system may not be subject to the same quality controls and testing requirements, posing potential risks to consumer health and safety. Illegal operations can also generate proceeds that support criminal activity. Strengthening the AGCO with new enforcement authority would help address these risks and support a safer cannabis marketplace for consumers and communities.
Quick Facts
- Illegal cannabis retailers account for approximately 30 per cent of cannabis sales in Ontario.
- The AGCO regulates alcohol, lottery and gaming, cannabis retail and horse racing in Ontario. This includes licensing and regulating private cannabis retail stores in Ontario.
