Ontario looking to tackle unlicensed cannabis retailers

Posted October 29, 2026 9:49 am.

In what licensed cannabis retailers are calling a big win, the Ford government has announced a new plan to tackle unlicensed cannabis shops operating across Ontario.

The proposed changes, which will be part of an upcoming package of legislative overhauls, would give the Alcohol and Gaming Commission of Ontario (AGCO) new tools to address unauthorized cannabis storefronts.

“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.

It’s a move Adam Vassos, president of the Retail Cannabis Council of Ontario, says is long overdue. The council estimates there are hundreds of unlicensed stores that have gone unchecked for years.

“Especially in Toronto where there has been no enforcement,” Vassos said.

In 2025, Toronto’s Municipal Licensing department — once tasked with inspecting unlicensed storefronts — acknowledged its efforts were difficult to sustain. The head of the department blamed limited financial resources and growing safety concerns. That lack of enforcement, Vassos says, has left an “open playing field” for illicit stores to operate freely without consequences.

“And that’s dangerous,” he said. “As these stores are not held to the same standards as those that are licensed.”

Licensed stores must follow strict protocol and sell only products that have undergone testing and approval from Health Canada.

“These illicit stores aren’t doing that,” Vassos said. “There’s been several tests that have been done on the products and most of them have been done by our government and they’ve shown contaminants, pesticides, they’ve even shown rat poisoning in some of them.”

Another concern is the stores are selling to minors and according to Downey, also generate proceeds that support criminal activity.

If approved, the legislation will authorize AGCO officers to perform inspections, seize illegal products and issue fines.

While still a proposal, Vassos will continue his efforts to see it moves forward.

“We will be providing any assistance we can, both to the provincial government in drafting legislation and to the AGCO in going out and enforcing how that can be done most effectively and most efficiently.”

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