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CannSell study guide: key rules on all 13 topics

Free CannSell study guide: 287 key points from the Cannabis Licence Act, 2018, O. Reg. 468/18 and AGCO guidance in plain words, organised by topic, each topic linked to its practice questions.

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  • 13 topics
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This study guide collects our notes on every topic of the CannSell Ontario Cannabis Retail Certification Test on one page: 287 short points in our own words, grouped by topic and by handbook section. Read it from top to bottom before your first practice test, or jump to a topic from the list below.

Each topic ends with a link to its practice questions, so you can check what you just read straight away, and a link to the official chapter for the full wording. The notes summarise the Cannabis Licence Act, 2018, O. Reg. 468/18 and AGCO guidance from the Alcohol and Gaming Commission of Ontario (AGCO); they do not replace it, and where our notes and the official source differ, the official source wins.

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Training and certification

Who 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.

Practise Training and certification questionsFlashcardsOfficial chapter

Training requirements

  • The AGCO Board may approve training courses on responsible sale and distribution of cannabis, record keeping under the Act and measures to reduce diversion to the illicit market.
  • Must personally complete Board-approved training: holders of a retail store authorization (CRSA) and holders of a cannabis retail manager licence (CRML).
  • The CRSA holder must make sure these people complete approved training: every licensed manager employed at the store, every other person employed to work in the store or to deliver cannabis sold through it, and every person providing security services for the store.
  • Delivery staff are covered by the training rule, the same as in-store staff.

Educational requirements (Cannabis retail regulation guide)

  • Training must be completed before the person's first day of work in the store, not within a grace period after starting.
  • It is the CRSA holder's responsibility to ensure every employee has met the educational requirement.
  • The AGCO Board has approved two cannabis retail employee programs: CannSell and CTC 1 (Cannabis Retail Certification Program).
  • Approved programs take about four hours, are delivered online, and are available in English and French.
  • Learners must score at least 80% on the program's final exam.

General standards

  • Licensees must ensure all employees act lawfully and with honesty and integrity.
  • Licensees must obtain criminal background checks from employees as part of hiring.
  • Licensees must make sure employees understand their obligations under laws, regulations, standards and store policies.
  • Required training (including Board-approved training) must be completed before an employee's first scheduled shift.
  • When new required training is approved and available, all current employees must complete it within 60 days.

Record keeping (training)

  • Employee records kept by the store include training records and CPIC (criminal record) check results, kept at least 3 years.

Schedule of Monetary Penalties (O. Reg. 468/18 s. 21)

  • Failing to complete or ensure required training can bring a monetary penalty of up to $8,000 for the store authorization holder and up to $8,000 for a retail manager.

For cannabis retail staff; FAQ Retail store operation

  • Anyone working in an Ontario cannabis retail store needs an AGCO Board-approved cannabis retail employee training certificate before the first day of work.
  • Training is a provincial (AGCO) requirement for retail staff; it is not a licence to open a store or to produce cannabis.

Licences, managers and store locations

Retail 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.

Practise Licences, managers and store locations questionsFlashcardsOfficial chapter

Cannabis retail regulation guide, Overview of cannabis legislation

  • Three AGCO approvals in cannabis retail: Cannabis Retail Operator Licence (CROL), Cannabis Retail Store Authorization (CRSA), Cannabis Retail Manager Licence (CRML).
  • The CROL lets a person or business operate retail stores; each store location needs its own CRSA.
  • Each authorized store must have at least one licensed retail manager.
  • A sole proprietor or a partnership of individuals who personally do the manager duties may not need a separate CRML.
  • A retailer may only sell cannabis bought through the Ontario Cannabis Store (OCS), under a supply contract with the OCS.
  • The Ontario Cannabis Store (Ontario Cannabis Retail Corporation) is a Crown agency and the only legal wholesaler of cannabis to private stores; it also runs the provincial online store; the AGCO does not regulate the OCS.
  • Health Canada licenses producers ("licensed producers"), the only legal growers and processors of cannabis.

Cannabis retail manager licence

  • Manager functions that require a CRML: supervising or managing store employees; overseeing or co-ordinating the sale or distribution of cannabis; managing compliance issues about cannabis sales; having signing authority to buy cannabis, sign contracts or make job offers.
  • An applicant for a CRML must be at least 19.
  • After a refusal or revocation, a person generally must wait until after the second anniversary before applying again, unless circumstances have changed significantly.
  • A CRML cannot be transferred to another person (AGCO retail manager licence page).

Operator licence; managers

  • An individual applying for a retail operator licence must be at least 19; for a corporation, every director, officer and shareholder must be at least 19.
  • No one may perform manager functions unless they hold a CRML or a retail operator licence.
  • A CRSA holder must not employ anyone to perform manager functions unless that person holds a CRML.
  • A licensed manager must carry out duties in a way consistent with the Act's sale rules (sections 18 to 24).

Conditions, renewals

  • Every licence and authorization is conditional on complying with the Cannabis Licence Act, the Cannabis Control Act, 2017, the federal Cannabis Act and their regulations.
  • The Registrar can attach conditions to a licence based on risk (risk-based licensing); conditions can also be imposed by the Licence Appeal Tribunal.
  • A renewal application must be made before the licence expires; if filed with the fee on time, the licence continues until the renewal decision.
  • If an operator licence is revoked or not renewed, the store authorizations held by that operator are revoked too.

General standards

  • A licensed retail manager (or an operator acting as manager) may be accountable for up to 5 authorized stores.
  • A copy of the Retail Manager Licence must be kept at the store and shown to AGCO inspectors or investigators on request.
  • The store's operating name must match the name on the retail store authorization.

Location and maximum authorizations

  • A store may not be located less than 150 metres from a school or private school (measured from the property line, or from the space the school occupies if it shares a building).
  • The 150 m rule does not apply to a private school on a reserve or one that only offers classes online.
  • One operator and its affiliates may hold at most 150 store authorizations.

Public notice; Cannabis Licence Act s. 41

  • Each proposed store location goes through a 15-calendar-day public notice; a placard must be posted at the location within 24 hours of the AGCO's notice.
  • Residents and the municipality may make written submissions; the only public-interest matters the Registrar may consider are public health and safety, protecting youth and restricting their access, and preventing illicit activity (O. Reg. 468/18 s. 10).
  • Municipalities had a one-time chance to opt out of stores by January 22, 2019; a municipality that opted out can later opt in, but an opt-in cannot be reversed.
  • A First Nations band council can ask the Registrar not to issue store authorizations on its reserve.

Products, sources and purchase limits

Buying 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.

Practise Products, sources and purchase limits questionsFlashcardsOfficial chapter

What a store may sell and buy

  • A store may only sell cannabis bought directly from the Ontario Cannabis Retail Corporation (OCS), in the packaging it was bought in.
  • A store may only buy cannabis for sale from the OCS (limited exception: buying another store's inventory when that store is closing, with notice to the Registrar, O. Reg. 468/18 s. 17.1).
  • Cannabis must have been produced by a producer licensed under the federal Cannabis Act (s. 7 (4) (a)).

Other products and services

  • Besides cannabis, a store may sell: cannabis accessories; shopping bags; items directly related to cannabis or its use (for example cannabis-themed items); and delivery services.
  • A store may not sell food or drink that is not cannabis (no snacks, soft drinks or coffee).
  • AGCO FAQ: authorized stores sell recreational cannabis only, not medical cannabis products sold to patients; edibles, extracts and topicals are allowed if bought from the OCS.
  • AGCO: a cannabis store must be the only business at the location; it cannot also be a restaurant, coffee shop, pharmacy or convenience store.

Purchase limit

  • Maximum permissible amount: 30 grams of dried cannabis or the equivalent in another class.
  • Limit applies per individual per single visit in the store, whether bought in one transaction or several.
  • Online or telephone sales: no more than 30 g equivalent per single transaction.
  • Distribution (handing over in store, curbside or by delivery) is also capped at 30 g equivalent per visit or delivery.
  • AGCO monetary penalty for exceeding the limit: up to $8,000.

Equivalency to 1 g dried

  • 1 g dried cannabis = 5 g fresh cannabis = 15 g of solids containing cannabis (edibles) = 70 g of non-solids (liquid products other than beverages) = 0.25 g of concentrates = 570 g of cannabis beverages = 1 cannabis plant seed.
  • So 30 g dried equals 150 g fresh, 450 g of edible solids, 2,100 g of non-solid liquids, 7.5 g of concentrates or 30 seeds.
  • Adults may possess up to 30 g dried (or equivalent) in public.

Cannabis edibles, extracts and topicals

  • Edibles and extracts and topicals became legal on October 17, 2019; recreational cannabis was legalized October 17, 2018.
  • An edible may contain at most 10 mg of THC per package and up to 30 mg of caffeine only if naturally occurring (e.g. chocolate, coffee, tea); no nicotine and no added alcohol.
  • Extracts (concentrates) and topicals may contain up to 1,000 mg of THC per package.
  • Products may not appeal to youth, make health, dietary or cosmetic claims, or link the product with alcohol, tobacco or vaping products.

Packaging and classes

  • Classes an authorized retailer may sell: dried, fresh, plants, seeds, edible cannabis, extracts and topicals.
  • It is prohibited to sell cannabis not packaged and labelled per federal rules, or with packaging that could appeal to young persons, shows testimonials or people, characters or animals, or links it to glamour, excitement or risk.
  • It is prohibited to sell cannabis or an accessory whose shape, appearance or function could appeal to young persons.

Consumer information

  • THC (delta-9-tetrahydrocannabinol) causes the "high" and has addictive potential; CBD (cannabidiol) is not intoxicating but still has effects.
  • Product forms: dried flower, pre-rolls, edibles (food and drink), oils and capsules (swallowed or under the tongue), vapes, concentrates (e.g. hashish, shatter, resin), topicals (on skin).
  • Concentrates are stronger extracts that can produce more intense effects.
  • CBD products can still contain some THC; read the label.

Cannabis and its effects

THC 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.

Practise Cannabis and its effects questionsFlashcardsOfficial chapter

Consumer information: Cannabis (2025)

  • THC causes the intoxicating and impairing effects and can be addictive; CBD is not intoxicating or addictive but still has effects.
  • Ingesting (eating, drinking, under the tongue): effects may begin in 30 minutes to 2 hours and last about 4 to 8 hours.
  • Inhaling (smoking, vaping): effects may begin within seconds to minutes and last about 2 to 4 hours.
  • Some lingering effects of either method can last 12 to 24 hours.
  • Delayed onset of ingested cannabis can lead people to take more, causing overconsumption and cannabis poisoning (panic or anxiety, paranoia, hallucinations).
  • Smoke contains toxic chemicals that raise the risk of heart and lung disease; vapour may also carry risks.
  • Topicals applied to the skin could cause skin irritation.
  • Immediate effects can include euphoria, dizziness or feeling faint, faster heart rate, changes in thinking, anxiety, panic, paranoia, increased appetite, impaired memory and attention, dry mouth, red eyes and drowsiness.
  • Serious effects: psychotic symptoms with extreme confusion, severe anxiety, paranoia and hallucinations.
  • If someone overconsumes and feels unwell: call 1-844-POISON-X, call 9-1-1 or go to the nearest hospital.
  • Edibles can poison children; store all cannabis out of sight and reach of children and pets, in its original child-resistant packaging.
  • Cannabis can interact with other drugs; avoid combining it with alcohol or other intoxicating substances.

Health effects of cannabis

  • Short-term effects on the brain: confusion, sleepiness, impaired ability to remember, concentrate, pay attention and react quickly; anxiety, fear or panic.
  • Short-term effects on the body: lower blood pressure (can cause fainting) and faster heart rate (risk for people with heart conditions).
  • Long-term daily or near-daily use can harm memory, concentration, IQ and decision-making, and raises the risk of addiction; effects are worse when use starts in adolescence.
  • Long-term smoking risks are similar to tobacco: bronchitis, lung infections, chronic cough, mucus.
  • During pregnancy, THC passes to the fetus through the blood and into breast milk after birth; use in pregnancy is linked to lower birth weight.

Cannabis (Do You Know…)

  • The cannabis plant contains over 540 chemicals; the two main cannabinoids are THC and CBD.
  • Effects depend on THC potency, amount, frequency and length of use, method of use, mood and setting, age, health conditions and whether alcohol or other drugs are also used.
  • First-time users should start with a small amount because they do not know how they will react.
  • Edibles can take up to two hours to show effects; it is safer to wait about four hours before deciding on another dose.
  • THC is stored in fat cells and can be detected in drug tests for a month or more; a person can still be affected after they no longer feel high.
  • Cannabis and alcohol together intensify each other's effects (poor memory, judgment and coordination, nausea, vomiting).
  • Illegal cannabis does not have to meet health and safety standards and may be contaminated with other drugs, pesticides or toxic fungi.
  • Cannabis use disorder: inability to stop despite problems; risk much higher if use begins before age 18.
  • Withdrawal after heavy long-term use: irritability, anxiety, upset stomach, loss of appetite, mood swings, sweating, poor sleep; peaks in the first days and lasts 1 to 2 weeks.
  • Cannabinoid hyperemesis syndrome: rare; repeated severe nausea and vomiting in long-term users; cured only by stopping.
  • Large THC doses, especially from edibles, can cause toxic psychosis (hallucinations, paranoia, confusion, memory loss).

Lower-risk use guidelines

Canada'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.

Practise Lower-risk use guidelines questionsFlashcardsOfficial chapter

Canada's Lower-Risk Cannabis Use Guidelines (LRCUG, PHAC/CAMH 2019)

  • The LRCUG give 10 science-based recommendations to help people who choose to use cannabis reduce health risks; they mainly apply to non-medical use.
  • The most effective way to avoid the risks of cannabis is not to use it.
  • Delay use at least until after adolescence; starting before about age 16 raises the risk of mental health, education, injury and other substance problems; the brain keeps developing until the mid-20s.
  • Choose products with low THC and a high CBD-to-THC ratio; higher THC potency is linked to more acute and long-term problems.
  • Avoid synthetic cannabinoids (e.g. K2, Spice), which have more severe effects and have caused deaths.
  • Smoking burnt cannabis, especially mixed with tobacco, is likely the most harmful method; vaporizers and edibles avoid smoke but are not risk-free.
  • Edibles avoid lung risks but delay onset and can lead to higher doses.
  • If smoking, avoid deep inhalation, breath-holding and forceful exhalation, which increase intake of toxins.
  • Avoid frequent or intensive use; limit use to occasional use, such as one day a week, weekends only, or less.
  • Do not drive or operate machinery for at least 6 hours after using cannabis; the collision risk is 2 to 3 times higher when cannabis-impaired, and higher still when combined with alcohol.
  • People with a personal or family history of psychosis or substance use disorders, and pregnant women, should not use cannabis at all.
  • Avoid combining risk factors (e.g. early start plus frequent use of high-potency products), which multiplies harm.
  • About 10 to 30 per cent of people who use cannabis are estimated to develop cannabis use disorder.

Responsible use information

  • Licensees must make information on responsible cannabis use available to patrons.
  • At minimum, the store must make Health Canada's "Consumer Information – Cannabis" document available to customers.

Are there safer ways to use cannabis?

  • Try not to use cannabis alone, in case of a bad reaction.
  • Know how much THC a product contains before using it, and store it safely.
  • Vaping is less harmful to the lungs than smoking, and edibles do not harm the lungs, but all products carry other risks.
  • Avoid cannabis while pregnant or breastfeeding.

Intoxication and refusing a sale

The ban on selling to anyone who is or appears intoxicated, signs of cannabis impairment, overconsumption, proxy buying, compliance records and police powers on premises.

Practise Intoxication and refusing a sale questionsFlashcardsOfficial chapter

Intoxicated persons

  • A store must not sell or distribute cannabis to a person who is or appears to be intoxicated.
  • Under the Cannabis Control Act no person may knowingly sell or distribute cannabis to anyone who is or appears to be intoxicated.
  • "Appears to be" matters: staff must act on visible signs; they do not need proof of a substance.
  • Intoxication can come from cannabis, alcohol or other drugs; the rule covers any cause.
  • AGCO monetary penalty for selling to an intoxicated person: up to $15,000.
  • The same refusal rules apply at curbside pick-up and at the door during a delivery (distribution includes handing over).

Records of compliance

  • Stores must keep records showing they comply with sections 7 and 8 of the Cannabis Control Act (no sales to under-19s, no sales to people who are or appear intoxicated), for at least 3 years.

signs of impairment

  • Signs that may show cannabis impairment: confusion; drowsiness or sleepiness; slowed reactions; trouble remembering, concentrating or paying attention; poor balance and coordination; dizziness or feeling faint; red eyes; dry mouth.
  • Behavioural signs can include anxiety, fear, panic, paranoia, or seeing or hearing things that are not there.
  • Signs of overconsumption (cannabis poisoning): panic or anxiety, paranoia, hallucinations, extreme confusion; seek help through 1-844-POISON-X, 9-1-1 or a hospital.
  • Effects of combined alcohol and cannabis are stronger than either alone.
  • A person can remain impaired after the "high" fades.

Staff duties

  • All employees must act within the law with honesty and integrity, so a refusal required by law cannot be overridden by a sales target or a manager's request.
  • Staff must take reasonable measures to stop a purchase made for someone under 19 (for example an adult buying for a youth waiting outside).

Police powers

  • Police who believe the Act is being broken on premises may order people to leave; it is an offence to stay or to re-enter the same day without police permission.
  • No one may obstruct a police officer or designated person acting under the Act.

Running the store

Hours 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.

Practise Running the store questionsFlashcardsOfficial chapter

Hours

  • A cannabis retail store may be open to the public between 7 a.m. and 11 p.m. on any day (O. Reg. 125/26 amendment).
  • Curbside distribution next to the store is also limited to 7 a.m. to 11 p.m.
  • AGCO monetary penalty for opening outside permitted hours: up to $15,000.

Seal and authorization display

  • Cannabis may not be sold unless the store displays the Ontario cannabis retail seal ("Ontario Authorized" / "Détaillant autorisé en Ontario", white trillium on black).
  • The seal must be visible from outside the public entrance and be at least 17 cm wide by 20 cm tall; English, French or both versions may be used.
  • The seal must also appear prominently on any store website or app, with the authorization number, holder's name, store operating name and address.
  • The retail store authorization must be posted in a conspicuous place inside the store.
  • If the authorization is revoked or not renewed, the seal must be removed as soon as practicable.
  • During a suspension, a sign in the Registrar's approved form must be displayed so it is visible from outside the entrance.
  • Only authorized retailers may use the seal or claim to be authorized (Cannabis Control Act s. 8.1).

Retail space

  • The retail space must be enclosed by walls separating it from any other business and from any outdoor area.
  • Customers cannot enter or pass through the store to reach another business (except a common area of an enclosed mall).
  • Receiving and storage areas cannot be accessible to other businesses or to the public.
  • An ATM may be located in the retail space.

Operating

  • Sales must start within one year of the authorization being issued and continue afterwards.
  • Cannabis may be distributed only in person in the store, in an area immediately adjacent to it, or by delivery.
  • All sales must be recorded sales.

Physical store

  • A secure, high-resolution surveillance system must run at all times with 24-hour coverage of entrances and exits (including where ID is checked), pick-up areas, point of sale, receiving, sales floor and storage, plus just outside the store.
  • Video must be kept at least 30 days and given to the AGCO on request.
  • All cannabis must be stored securely and accessible only to staff from receipt to sale, destruction or return.
  • Outdated, recalled, damaged or otherwise unsellable cannabis must be kept separate from other cannabis.
  • Sensory display containers (to see and smell product) are allowed only if locked, tamper-proof and not removable; patrons must not be able to touch the cannabis.
  • Cannabis in sensory display containers must be bought from store inventory through the point-of-sale system.
  • The store must have exterior signage clearly identifying the business (Standard 6.1).

Display

  • Cannabis and accessories must not be displayed where a young person could see them, including from outside the store.
  • Selling through a self-service display or a dispensing device such as a vending machine is prohibited.

Products and education

  • Stores choose how to display products, but cannabis must stay secure and accessible only to staff.
  • Store-run educational sessions for customers are up to the operator; responsible-use information must be available.

Delivery, curbside and online sales

Who 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.

Practise Delivery, curbside and online sales questionsFlashcardsOfficial chapter

Delivery

  • Only the CRSA holder or the holder's employees may deliver; third-party delivery services are not allowed (s. 14 also bars contracts for distribution services, except with the OCS).
  • Delivered cannabis must be in its original, unopened packaging.
  • Delivery only to a residence or private place (a hotel room counts as a private place), and only to the person at the address given in the order.
  • Delivery only between 9 a.m. and 11 p.m. while the store is open to the public.
  • If a landlord (who is not an interested person in the holder) requires the store premises to close during those hours, as in some malls, the store may still deliver between 9 a.m. and 11 p.m.
  • A store may not operate entirely or mainly as a delivery business.
  • Cannabis may not leave the store's inventory for delivery until an order has been placed, and the order must have been placed with that store.
  • Undelivered cannabis must return to the same store the same day and stay there until the next delivery attempt.
  • The recipient must be at least 19; if they appear under 25, the delivery employee must check ID and be satisfied they are 19 or older.
  • The 30 g equivalent limit applies to each delivery.
  • Records of the purchaser's name and address and the delivery address must be kept (Standard 8.1).
  • Transport of cannabis for delivery must be secure (Standard 4.3).
  • AGCO monetary penalty for breaking delivery rules: up to $15,000.

First Nations delivery

  • Delivery to First Nations communities is allowed unless the band council has asked the AGCO to restrict it.
  • After the AGCO notifies stores of a band council resolution, the restriction takes effect 30 days later.

Curbside pick-up

  • Cannabis bought from the store may be handed over in an area immediately adjacent to the store, between 7 a.m. and 11 p.m.
  • Only the holder or an employee may hand it over.
  • The curbside area must be clearly captured by the store's surveillance system.

Online sales

  • Authorized stores may sell online through their own e-commerce platform; customers choose delivery, in-store pick-up or curbside pick-up.
  • Customers cannot buy more than 30 g dried (about one ounce) or equivalent at one time online.
  • For online orders picked up in store, the record of which employee handed over the cannabis satisfies traceability to the employee level.

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.

Practise Advertising, promotion and inducements questionsFlashcardsOfficial 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.

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.

Practise Records, inventory and destruction questionsFlashcardsOfficial 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.

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.

Practise Inspections, offences and penalties questionsFlashcardsOfficial 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.

Where to use it, transport and driving

Where 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.

Practise Where to use it, transport and driving questionsFlashcardsOfficial chapter

Cannabis laws (where you can smoke or vape)

  • Allowed: private residences (not those that are also workplaces, such as long-term care homes); many outdoor public places such as sidewalks and parks; designated smoking hotel rooms; parked or anchored residential vehicles and boats with permanent sleeping and cooking facilities.
  • Not allowed: indoor common areas of condos, apartments and residences; enclosed public places and enclosed workplaces; non-designated hotel rooms.
  • Not allowed at schools, on school grounds or within 20 m of them; on children's playgrounds or within 20 m; in child care centres or places where home child care is provided, even if children are absent.
  • Not allowed within 9 m of hospital entrances or exits, or on hospital outdoor grounds.
  • Not allowed on publicly owned sports fields (not golf courses) and within 20 m; in restaurants and bar patios and within 9 m of a patio; in sheltered outdoor areas with a roof and more than two walls such as bus shelters.
  • Municipal by-laws, leases and employer or landlord policies may add restrictions.
  • Consuming recreational cannabis in an enclosed workplace is illegal.

Cannabis laws (possession and growing)

  • Adults 19+ may have up to 30 g dried cannabis (or equivalent) in public.
  • Up to four plants per residence (not per person), for personal use, from seeds or plants bought from the OCS or an authorized store, unless a lease or condo rules forbid it.
  • Medical cannabis is regulated by the federal government and bought from federally licensed producers, not from retail stores.

Cannabis in vehicles and boats

  • No one may drive or have care or control of a vehicle or boat, moving or not, with cannabis in it, unless the cannabis is in its original unopened packaging or packed in closed baggage not readily available to anyone in the vehicle.
  • Police with reasonable grounds may search the vehicle or boat and its occupants without a warrant.
  • You cannot consume cannabis (smoking, vaping or eating) in a vehicle or boat that is being driven or will be driven.

Impaired driving

  • Driving impaired by cannabis carries the same penalties as alcohol-impaired driving.
  • Ontario's zero-tolerance rule for young, novice and commercial drivers also applies to cannabis.
  • Impaired-driving laws also cover boats, snowmobiles and off-road vehicles.
  • Failing or refusing a drug or alcohol test, or performing poorly on a Drug Recognition Expert evaluation: immediate 90-day licence suspension, 7-day vehicle impoundment and a $550 penalty.
  • Police use roadside drug screening equipment and sobriety tests.

Lower-Risk Cannabis Use Guidelines; CAMH

  • Do not drive for at least 6 hours after using cannabis; there is no known safe level of use for driving.
  • Cannabis impairs judging distance, focus, reaction time and control of movements.

Written in our own words from: Cannabis Licence Act, 2018, O. Reg. 468/18 and AGCO guidance

FAQ

CannSell study guide: common questions

What is the best way to use this CannSell study guide?

Read one topic, then answer that topic's practice questions while the rules are fresh. Note the questions you miss, re-read those notes, and finish with a full practice test across all 13 topics.

Is this the official CannSell handbook?

No. It is our own summary of the Cannabis Licence Act, 2018, O. Reg. 468/18 and AGCO guidance. Use it to review, and use the official handbook when you need the exact wording of a rule.

Can I print the study guide?

Yes, with your browser's print command. For practice questions on paper with an answer key, use our printable questions and answers page instead.

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