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CannSell: Advertising, promotion and inducements

What store advertising may not do, federal promotion limits, no free product or contests to drive sales, and the rules on inducements from licensed producers.

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Advertising, promotion and inducements · Question 1Score 0/0

A permitted franchise agreement with a producer requires the store to devote half its shelves to that producer. Is that allowed?

Study reference: Ontario cannabis retail law and AGCO guidance (Oct 2026), Ch. 10 Advertising and inducements — Registrar's Standards 6.1 to 6.6; Cannabis Act (Canada) ss. 17, 24; Cannabis Licence Act s. 36; AGCO Guidance on inducements

All 13 questions in this test

Every question and its answer choices. The correct answers and explanations appear when you take the test above.

  1. A permitted franchise agreement with a producer requires the store to devote half its shelves to that producer. Is that allowed?

    1. Yes, franchise agreements have no limits at all
    2. Yes, if the producer owns part of the store chain
    3. No, required display space is not allowed
    4. Yes, if those shelves are clearly labelled for customers
  2. Which advertising message breaks the Registrar's Standards?

    1. A notice that the store accepts debit and credit cards
    2. A sign listing the store's opening hours each day
    3. A post saying cannabis helps you succeed at work
    4. A post stating the store's address and phone
  3. A producer invites staff to a training session at its facility. Which benefit is allowed?

    1. Hotel rooms paid by the producer
    2. Cash paid for attending the session
    3. A modest meal during the training
    4. A bonus for each unit of its product sold
  4. Which item from a licensed producer may be acceptable as nominal value?

    1. Paid travel to a trade show
    2. A branded t-shirt or hat
    3. A point-of-sale terminal
    4. A new display refrigerator
  5. Can store staff ask a licensed producer's rep for concert tickets in return for pushing the producer's brand?

    1. No, staff may not request or accept them
    2. Yes, if the rep offers them first without being asked
    3. Yes, if the tickets are worth less than $500 in total
    4. Yes, if the manager also receives the same tickets
  6. Which kind of store advertising is prohibited?

    1. Ads that show the store's hours of operation
    2. Ads that list the store's street address
    3. Ads that state the store is AGCO-authorized
    4. Ads linking cannabis use with driving a vehicle
  7. If a store accepts an item under the inducement exemptions, which detail must it record?

    1. The names of customers who bought the brand
    2. The item's fair market value and the producer's name
    3. The resale value of the item on the internet
    4. The personal phone number of the producer's CEO
  8. Which arrangement with a licensed producer is prohibited?

    1. Accepting a lanyard at a training event
    2. Selling business data at fair market value
    3. Signing a store-brand product agreement
    4. Selling the producer preferred shelf placement
  9. Can store advertising associate cannabis with medicine or health benefits?

    1. No, health or medical associations are banned
    2. Yes, if the product is high in CBD and low in THC
    3. Yes, but only on the store's own website or app
    4. Yes, if a licensed pharmacist reviews the ad first
  10. A store offers a free pre-roll to anyone who spends $50. Is this allowed?

    1. Yes, if the free pre-roll weighs less than one gram
    2. No, free cannabis as a purchase inducement is banned
    3. Yes, if every customer getting it is over 25
    4. Yes, if the offer runs only on statutory holidays
  11. At the point of sale, what may a store's promotion of cannabis show?

    1. Only the product's availability and price
    2. Claims that the product improves health
    3. Pictures of people enjoying the product
    4. A celebrity endorsement of the product
  12. A person posts ads for an illegal online dispensary. What does Ontario law say?

    1. It is legal if the dispensary ships from another province
    2. It is legal if the ads appear only on social media
    3. Knowingly promoting unauthorized cannabis sales is an offence
    4. It is legal as long as the ads mention the legal age
  13. A store plans a prize draw open only to customers who buy cannabis. What does federal law say?

    1. Draws offered as a reward for buying are prohibited
    2. Draws are allowed if entry is limited to adults 19+
    3. Draws are allowed if the prize is not cannabis itself
    4. Draws are allowed if the AGCO is notified in advance

Advertising, promotion and inducements: key rules to remember

Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗

Advertising

  • Store advertising may not appeal to or target people under 19.
  • It may not be false, misleading or deceptive.
  • It may not suggest cannabis brings success, enjoyment of an activity, achievement of a goal or the solution to a problem, including through endorsements or testimonials.
  • It may not be associated with medicine, health or pharmaceuticals.
  • It may not depict or suggest illegal sales, or link cannabis use with driving or any activity needing care and skill or involving danger.
  • A store may not give away cannabis or accessories free, or give any other thing or benefit, as an inducement to buy cannabis or an accessory (no "free pre-roll with purchase", no prize draws for buyers).

Promotion and inducements

  • Federal law bars promoting cannabis through price or distribution information, in ways appealing to young persons, through testimonials or endorsements, using real or fictional people, characters or animals, or by linking it to a lifestyle of glamour, recreation, excitement, vitality, risk or daring.
  • At the point of sale, a retailer may promote cannabis only by indicating its availability and/or price.
  • Informational or brand-preference promotion is allowed in places young persons are not permitted by law, or in communications addressed by name to adults.
  • Sellers may not give cannabis or accessories free or in exchange for buying something, or offer contests, games, draws or lotteries as an inducement to buy.

Illegal sellers

  • It is an offence to knowingly advertise or promote cannabis sales by a person who is not authorized to sell it (e.g. an illegal online dispensary).

Inducements from producers

  • No one may give a material inducement to a licence holder or its employees to increase sales of a particular type of cannabis.
  • Stores and staff may not request or accept material inducements from licensed producers, their representatives or accessory suppliers.
  • Exemptions: items of nominal value; items, benefits or services only for cannabis training or education; selling business data for business intelligence; financing and leases where the producer owns part of the store; franchise agreements; store-brand (white-label) products.
  • Permitted agreements may not set how much of a producer's product the store must carry, reserve display space for it, provide merchandising or promotion for the producer, or limit sales of other producers' products.
  • Nominal value is contextual: it would not change your behaviour toward the producer, would not offset operating costs, and is received infrequently. Examples: t-shirts, hats, lanyards, inexpensive accessories.
  • Allowed for training: training sessions or materials, modest meals during training, small infrequent product samples tied to education.
  • Prohibited examples: selling ad space or shelf placement to producers, co-branded ads, sensory-display cannabis from producers, fixtures or equipment (fridges, TVs, monitors, POS, security equipment, uniforms), sales-performance rewards (concert tickets, game consoles), cash or rebates, travel or accommodation for training, payment for attending training.
  • Agreements and items accepted under Standard 6.5 must be recorded: copy of agreement, description, date received, producer and representative names, fair market value.
  • AGCO monetary penalty for offering a material inducement: up to $10,000.

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