Ontario Cannabis Operator Fined $200K for Alleged Illegal Agreements
A cannabis operator in Ontario has been hit with a hefty fine of $200,000 for allegedly entering into illegal agreements with unlicensed retailers.
The Alcohol and Gaming Commission of Ontario (AGCO) issued the fine to CannAssist Canada Corp. after an investigation revealed that the company had entered into agreements with unlicensed retailers to supply them with cannabis products.
According to the AGCO, these agreements were in violation of the Cannabis License Act and the Cannabis Control Act, which prohibit licensed cannabis operators from engaging in any activities with unlicensed retailers.
In a statement, the AGCO said that these illegal agreements not only undermine the regulated cannabis market, but also pose a risk to public health and safety.
The investigation was launched after the AGCO received a complaint about CannAssist Canada Corp. The company was found to have entered into agreements with unlicensed retailers in the Greater Toronto Area, Ottawa, and Hamilton.
As part of the investigation, the AGCO conducted inspections at the company’s premises and reviewed its records. The evidence gathered during the investigation led to the conclusion that CannAssist Canada Corp. had indeed entered into illegal agreements with unlicensed retailers.
In addition to the $200,000 fine, the AGCO has also imposed a number of conditions on CannAssist Canada Corp.’s license, including a requirement to submit a compliance report within 30 days and to undergo compliance training.
The AGCO has also reminded all licensed cannabis operators to adhere to the laws and regulations governing the industry, and to conduct their business in a responsible and ethical manner.
This fine serves as a warning to all cannabis operators that the AGCO will not hesitate to take action against those who engage in illegal activities that undermine the regulated market.
The AGCO is committed to ensuring the integrity of the cannabis industry in Ontario and will continue to monitor and investigate any potential violations.
