Where must recalled, damaged or expired cannabis be kept until it is returned or destroyed?
CannSell: Records, inventory and destruction
Three-year records, monthly inventory counts, certified point-of-sale systems, destroying unsellable cannabis on camera, recalls, inter-store transfers and preventing diversion.
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- Every answer explained
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- 13 questions
- Topic drill
Study reference: Ontario cannabis retail law and AGCO guidance (Oct 2026), Ch. 11 Records and security — Registrar's Standards 1.10, 3.1 to 4.4, 8.1 to 8.7; Cannabis Licence Act s. 7 (4)
All 13 questions in this test
Every question and its answer choices. The correct answers and explanations appear when you take the test above.
Where must recalled, damaged or expired cannabis be kept until it is returned or destroyed?
- In the sensory display containers
- Separate from other cannabis
- On the sales floor at a discount
- In a staff member's locker
What standard must a store's point-of-sale and e-commerce systems meet?
- Built by the store's own staff to save on costs
- Approved in writing by the store's landlord
- Certified (for example PCI or ISO) and logging access
- Any system that prints paper receipts for customers
How often must unsellable cannabis (other than vape products) be destroyed, at minimum?
- Monthly
- Only at closing
- Yearly
- Weekly
A product is recalled. What must the store do?
- Stop selling it and return it securely through the OCS
- Give the recalled product away to staff members
- Keep selling it until the next monthly inventory count
- Sell the remaining stock quickly at a lower price
What must a store do to reduce the risk of cannabis diversion?
- Keep all cannabis displayed on open shelves for staff
- Sell only to customers who live in the neighbourhood
- Take adequate measures to prevent diversion
- Limit sales to one product per customer per day
How often must a store do a full physical count of all cannabis inventory, at minimum?
- Every five years, at recertification
- Once a year, at the licence renewal
- Only after a theft has been reported
- Monthly, or whenever the AGCO asks
An operator moves cannabis between two of its stores. What must happen?
- Any employee may carry it in a personal car without records
- The transfer must first be approved by the municipal council
- The OCS must collect it from one store and redeliver it
- Licensed supervision at each store and POS records at both
Before a store's authorization is cancelled, what must happen to unsold cannabis?
- It must be sold, transferred or destroyed
- It may be sold privately to former customers
- It may be kept by the owner for personal use
- It may be stored in the empty store indefinitely
How must each sale transaction be recorded?
- Recorded only if paid in cash
- Traceable only to the till number
- Recorded only for sales over 10 grams
- Traceable to the employee who made it
If a store destroys unsellable cannabis itself, what is required?
- It is filmed and overseen by a licensed manager or operator
- Any employee may do it alone after closing time each night
- It must be done off-site at the customer's or staff's home
- It needs no record or oversight if the amount is small
What is the minimum time a cannabis store must keep required records?
- Three years
- One year
- Seven years
- Six months
Which method of destroying cannabis is not acceptable?
- Using a third party with a destruction certificate
- Burning it where staff breathe the smoke
- Rendering it unusable under environmental law
- Following municipal and federal disposal rules
Which of these counts as a cannabis transaction that must be documented in the POS system?
- A staff member's lunch break
- A customer browsing without buying
- A loss or theft of cannabis
- A phone call asking about hours
Records, inventory and destruction: 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 ↗
Records
- Required records must be kept at least 3 years (longer if other laws require) and given to the AGCO on request.
- Employee records: names, addresses, main duties, shift schedules, training records, CPIC check results and dates of employment.
- Cannabis records: every sale (in store, online or by phone) traceable to the employee level; cannabis destroyed (with reason, method and a certificate if a third party destroyed it); records to support recalls.
- Records showing compliance with the under-19 and intoxication rules.
- Delivery records: purchaser's name and address and the residential delivery address.
- Records of which stores each licensed manager is accountable for.
Inventory and systems
- Full physical inventory counts of all cannabis at least monthly, or whenever the AGCO asks; adjustments are documented in the point-of-sale system.
- Point-of-sale and e-commerce systems must be certified by a recognized body (e.g. PCI, ISO) and log all system access and changes.
- The POS must capture all cannabis transactions and the data needed for the national cannabis tracking system, and be integrated with the AGCO's POS Data Reporting Platform.
- A cannabis transaction includes a sale, transfer, purchase, return, destruction, loss or theft, or inventory adjustment; all must be accurately documented.
- Reasonable safeguards must protect data security and integrity.
Destruction
- Cannabis that cannot be sold or returned to the OCS must be destroyed or made unusable lawfully, without exposing anyone to cannabis smoke or vapour.
- If the store destroys it, the whole process must be on camera and overseen by a licensed manager or the licensed operator.
- Unsellable cannabis must be destroyed at least monthly; cannabis in vapour products must be destroyed as soon as practicable.
Transport and recalls
- In a recall, the store works with the OCS to return all unsold recalled product securely and keeps records of what was returned.
- An operator with several stores may move cannabis between them securely; a licensed manager or operator supervises at each store and both POS systems record the inter-store transfer.
- Selling or distributing recalled cannabis is prohibited (Cannabis Act s. 35).
Diversion
- A store must keep appropriate records of the cannabis it possesses and take adequate measures to reduce the risk of diversion to the illicit market.
- AGCO monetary penalty for inadequate diversion measures: up to $100,000; for poor records: up to $10,000.
Closing
- Before an authorization is cancelled or not renewed, any unsold cannabis must be sold, transferred or destroyed.
Study the Records, inventory and destruction rules as flashcards →
Other topics
- Training and certificationWho must complete AGCO Board-approved cannabis retail training before the first shift, the two approved programs, the 80% final-exam standard, background checks and training records.
- Licences, managers and store locationsRetail operator licence, store authorization and retail manager licence, what managers do, age 19 for applicants, the five-store limit, the 150-metre school rule, public notice and municipal opt-outs.
- Legal age and checking IDAge 19 in Ontario, ID checks at the door for anyone who appears under 25, the good-faith ID defence, fake ID, proxy purchases, no staff under 19 and youth offences.
- Products, sources and purchase limitsBuying only from the OCS, what else a store may sell, the 30-gram limit per visit or order, federal equivalency amounts, THC limits for edibles and extracts and packaging rules.
- Cannabis and its effectsTHC and CBD, onset and duration for inhaled and ingested cannabis, short- and long-term effects, overconsumption and poisoning, pregnancy, mixing with alcohol and safe storage.
- Lower-risk use guidelinesCanada's Lower-Risk Cannabis Use Guidelines: delaying use, lower-THC products, avoiding synthetics and smoking, occasional use, six hours before driving and who should not use, plus the store's duty to share responsible-use information.
- Intoxication and refusing a saleThe ban on selling to anyone who is or appears intoxicated, signs of cannabis impairment, overconsumption, proxy buying, compliance records and police powers on premises.
- Running the storeHours of 7 a.m. to 11 p.m., the cannabis retail seal, posting the authorization, enclosed retail space, surveillance, secure storage, sensory displays and the ban on self-service and vending machines.
- Delivery, curbside and online salesWho may deliver, delivery hours of 9 a.m. to 11 p.m., residences and private places only, ID at the door, returning undelivered orders, curbside pick-up rules and First Nations delivery restrictions.
- Advertising, promotion and inducementsWhat store advertising may not do, federal promotion limits, no free product or contests to drive sales, and the rules on inducements from licensed producers.
- Inspections, offences and penaltiesAGCO inspections and inspectors' powers, whistle-blower protection, fines under the Cannabis Licence Act and Cannabis Control Act, monetary penalties and Licence Appeal Tribunal hearings.
- Where to use it, transport and drivingWhere adults may and may not smoke or vape cannabis in Ontario, possession and home-growing limits, carrying cannabis in vehicles and boats, and impaired-driving consequences.