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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.”
A representative with Montrose Cannabis was not immediately available for comment.
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
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