CannSell overview

CannSell: Inspections, offences and penalties

AGCO inspections and inspectors' powers, whistle-blower protection, fines under the Cannabis Licence Act and Cannabis Control Act, monetary penalties and Licence Appeal Tribunal hearings.

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Inspections, offences and penalties · Question 1Score 0/0

What is the maximum penalty for an individual convicted under the Cannabis Licence Act?

Study reference: Ontario cannabis retail law and AGCO guidance (Oct 2026), Ch. 12 Enforcement — Cannabis Licence Act ss. 27 to 40; Cannabis Control Act ss. 6, 9, 18, 23; AGCO Schedule of Monetary Penalties

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. What is the maximum penalty for an individual convicted under the Cannabis Licence Act?

    1. $250,000 and up to five years in jail
    2. A warning letter for a first offence
    3. $5,000 and no possibility of jail
    4. $100,000, up to one year in jail, or both
  2. Which power does an AGCO inspector have during an inspection?

    1. Issuing a new store authorization on the spot
    2. Changing the store's permitted opening hours
    3. Taking photos and examining relevant records
    4. Arresting customers for any offence they see
  3. Within what time must a prosecution for an offence under the Cannabis Licence Act begin?

    1. Within two years of the offence
    2. Within 30 days of the offence
    3. Within six months of the offence
    4. At any time, there is no limit
  4. A manager fires an employee for reporting a violation to the AGCO. What does the Act say?

    1. The Act protects only reports made directly to police
    2. The firing is allowed if the report turns out wrong
    3. The firing is allowed during an employee's probation
    4. Retaliating against people who report is prohibited
  5. An individual sells cannabis without authorization for the first time. What is the minimum fine on conviction?

    1. $100,000
    2. $10,000
    3. $1,000
    4. $500
  6. How does an AGCO monetary penalty compare with other compliance tools?

    1. Always followed by revocation of the licence
    2. More than a warning, less than a suspension
    3. The same as a criminal conviction in court
    4. Less serious than a verbal warning from staff
  7. A store's authorization has expired. Can it keep selling while it sorts out paperwork?

    1. Yes, but only to regular customers it already knows
    2. No, it must stop operating; sales would be illegal
    3. Yes, if it has already applied to the OCS for supply
    4. Yes, for up to 90 days after the expiry date
  8. From whom may a person in Ontario legally buy recreational cannabis?

    1. From an online seller in any country
    2. Only from an authorized cannabis retailer
    3. From any adult who grew it at home
    4. From a medical patient with extra supply
  9. A corporation commits an offence under the Act. Who else can be found guilty?

    1. A director or officer who took part in it
    2. Every customer who bought from the store that day
    3. The OCS employee who shipped the product to the store
    4. Only the most junior employee working on that shift
  10. What is the maximum fine for a corporation convicted of an offence under the Cannabis Licence Act?

    1. $250,000
    2. $1,000,000
    3. $25,000
    4. $100,000
  11. Where can a licence holder ask for a hearing about a proposed suspension or revocation?

    1. Health Canada's licensing branch
    2. The Ontario Cannabis Store board
    3. The Licence Appeal Tribunal
    4. The local municipal council
  12. A clerk gives an inspector false information about stock levels. What is this?

    1. Acceptable if the clerk was not sure
    2. An offence of obstructing an inspection
    3. An issue for the OCS, not the AGCO
    4. Only a breach of store policy
  13. What must a licence holder do when an AGCO inspector arrives for an inspection?

    1. Refuse unless a lawyer is present
    2. Facilitate the inspection
    3. Ask the inspector to book a time next week
    4. Close the store until the inspector leaves

Inspections, offences and penalties: 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 ↗

Inspections

  • AGCO inspectors may enter any place used by the store (not a dwelling) at any reasonable time to check compliance.
  • Inspectors may examine records and packages, demand records in writing, remove records with a written receipt, take photos or recordings and ask about financial transactions.
  • Every licence or authorization holder must facilitate inspections; the custodian of a demanded record must produce it and help make it readable.
  • It is an offence to obstruct an inspector, refuse to answer relevant questions or give false information.
  • Police officers are deemed investigators under the Act.

Whistle-blowing

  • No one may retaliate (dismissal, discipline, penalty, intimidation) against a person for disclosing information to the Registrar, an inspector or an investigator.
  • Licence holders may not discourage anyone from making such disclosures.

Offences and fines

  • Breaking the core sale rules (ss. 18–23, 25), inducement, obstruction or whistle-blower rules is an offence.
  • Maximum fine on conviction: corporation $250,000; individual $100,000 and/or up to one year in jail.
  • Directors or officers who authorize or take part in a corporation's offence are also guilty.
  • Proceedings must start within two years of the offence.

Illegal sale and purchase

  • Only an authorized cannabis retailer (the OCS or a CRSA holder acting under its authorization, including its employees) may sell cannabis.
  • No one may buy cannabis except from an authorized retailer.
  • First conviction for illegal selling (individual): fine of $10,000 to $250,000 and/or up to two years less a day; corporation: $25,000 to $1,000,000.
  • General CCA maximum: corporation $250,000; individual $100,000 and/or one year.

Monetary penalties (Schedule effective Dec. 5, 2025)

  • Monetary penalties are stronger than a warning but less severe than suspension or revocation.
  • Examples of maximums: selling to under-19s, buying outside the OCS, selling non-licensed-producer cannabis, or diversion failures: up to $100,000; breaching Registrar's Standards: up to $100,000 for operators and store holders, up to $10,000 for managers; selling to an intoxicated person or entry of under-25s without ID check: up to $15,000; failing to display the seal or authorization: up to $2,000.

Suspension, revocation, hearings

  • A licence or authorization can be suspended or revoked for non-compliance or loss of eligibility; the holder can request a hearing before the Licence Appeal Tribunal (LAT).
  • Some suspensions or revocations can take effect immediately.
  • A store whose authorization is expired, suspended or revoked must stop operating; selling then is illegal under the Cannabis Control Act.

Closure of illegal premises

  • When charges are laid for illegal selling, police may close the premises immediately and bar entry until the charge is decided.

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