Cannabis retail regulation guide
A guide to the laws, regulations, eligibility requirements and licensing and application process for recreational cannabis retail stores in Ontario.
This guide is provided as a courtesy to potential applicants and holders of retail cannabis licences and authorizations. Every effort has been made to ensure its accuracy, however, applicants should always consult the relevant legislation, regulations, and standards before proceeding.
How to Use This Guide
The Alcohol and Gaming Commission of Ontario's (AGCO)Cannabis Retail Regulation Guide (the 'Guide) is a guide to the laws, regulations, eligibility requirements, and licensing and application process for recreational cannabis retail stores in Ontario. This guide is provided as a courtesy to potential applicants and holders of retail cannabis licences and authorizations. Every effort has been made to ensure its accuracy. However, applicants should always consult the relevant legislation, regulations and standards before proceeding.
- Use the search box (on the left side of your screen) by entering key words like "training" or "fees"
- Click on the headings under the Table of Contents (on the left hand side of your screen) to browse what’s in each section
- Use the links at the bottom of each page to move to the next/previous page in this section or to produce a printer-friendly version of this page
- Look for links on each page to legislation, websites and other helpful resources that provide more information
If you find that this guide is not what you’re looking for, please use the top menu or search box to find other sections of the AGCO website.
Getting Started with iAGCO
iAGCO is the AGCO’s web-based portal through which users can access online services.
This section is intended to provide support for applicants as you use iAGCO online services.
Before getting started in iAGCO
- When using iAGCO online services, it is important to understand that the process of completing your transaction takes time. This includes both the steps you must take and the review and approval process by AGCO staff.
- Please be sure that you have prepared everything you need to complete your submission.
- Do you have the required forms or documents to complete your transaction once you’re logged into the iAGCO portal?
- Some transactions require forms to be signed and uploaded, which you can do before you create your account.
- Once you’ve prepared the required documents, you can begin by creating your iAGCO account.
To create your account:
- You will need a valid email address
- You can use any device or browser
- You must provide payment for applicable fees to complete the transaction
- Completing the transaction is not the end of the process. AGCO staff will review your submission and either accept it or get back to you requesting more information.
For more information on iAGCO online services, visit the iAGCO Information page.
Cannabis Retail Regulation in Ontario
Overview of Cannabis Legislation in Ontario
This chapter provides a summary of your cannabis retail requirements under the relevant provincial legislation, including the Cannabis Control Act, 2017 and the Cannabis Licence Act 2018 and its regulation. This is meant to be a guide. It is not a complete list of all rules and is not legal advice. In addition, you may be subject to federal requirements pursuant to the Cannabis Act.
General
To open a retail store and sell recreational cannabis, there may be two licences and an authorization that are required from the AGCO. These are:
- Cannabis Retail Operator Licence (CROL)
- Cannabis Retail Store Authorization (CRSA)
- Cannabis Retail Manager Licence (CRML)
All applicants must meet all of the eligibility criteria set out in the Cannabis Licence Act, 2018 and its regulation.
Sole proprietorships or partnerships between individuals may not require a CRML. You should consider the duties performed by individuals to determine if they require a CRML. Please note that the educational requirements must be met.
A cannabis retail store may not sell cannabis unless licensed and authorized by the AGCO, and the retailer must have a supply purchase contract with the Ontario Cannabis Store (OCS). The retailer may only sell cannabis obtained through the OCS..
Retail Operator Licence
To be eligible to open a retail store and sell recreational cannabis, you must have a CROL.
You are not eligible for a CROL if:
- you are under 19 years of age. This includes directors, officers and shareholders of corporations.
- you have been convicted or charged with certain offences:
- any offence under the Cannabis Licence Act, 2018 or its regulation
- certain offences under the Cannabis Control Act , 2017 and Cannabis Act or their regulations
- you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada):
- you are, or have been, a member of the criminal organization
- you are, or have been, involved in the criminal organization
- you contribute to, or have contributed to, the activities of the organization.
- you are carrying on activities that are not in compliance with certain laws.
- certain offences under the Cannabis Control Act, 2017 and Cannabis Act
- you have made a false statement or provided false information in your application.
- you are in default of filing a tax return under a tax statute administered and enforced by the Government of Ontario, or have any outstanding amounts owing and past due of tax, penalty or interest under those laws and have not made payment arrangements;
- you have a business number with the Canada Revenue Agency and have not filed a tax return under certain federal or provincial legislation.
- the application will be made by a corporation and more than 25 percent of the corporation is owned or controlled, either directly or indirectly, by one or more licensed producers (LPs)or their affiliates.
- you will not be financially responsible in operating your cannabis business.
- you will not operate your cannabis retail business in compliance with the law, or with integrity, honesty or in the public interest.
- you will not have sufficient control over the cannabis retail business
- you had a CRSA in the past but the authorization was revoked
Generally, you must wait two years to apply again for a CROL if you:
- applied for a new licence or renewal licence in the past but were refused, or
- you had a CROL in the past but the licence was revoked.
You may have conditions put on your CROL to address any specific risks or concerns. There are also conditions in the Cannabis Licence Act, 2018 that apply to all CROLS.
You cannot transfer your CROL to another person or business.
Retail Store Authorization
To open a retail store and sell recreational cannabis, you must have a CRSA.
There are some places where you cannot open a cannabis retail store. More information about that is in the section of this Guide called 'Retail Store Location'.
Generally, you must wait two years to apply again for a CRSA if you:
- applied for a new CRSA or renewal of a CRSA in the past but were refused, or
- you had a CRSA in the past but the authorization was revoked.
You are not eligible for a CRSA for a store if:
- you do not have a CROL now, or would not have a CROL at the time when the CRSA would be issued.
- you have a CROL that has conditions that do not allow you to apply for or receive a CRSA for that store.
- you have been convicted of or charged with certain offences:
- any offence under the Cannabis Licence Act, 2018 or its regulation
- certain offences under the Cannabis Control Act, 2017 and Cannabis Act (Canada) or their regulations
- you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada):
- you are, or have been a member of the criminal organization
- you are, or have been involved in the criminal organization
- you contribute, or have contributed to, the activities of the organization.
- you are carrying on activities that are not in compliance with certain with certain laws.
- Certain offences under the Cannabis Control Act, 2017 and Cannabis Act
- you hire or plan to hire someone who does not have a CRML, but should have that Licence because of the work they do.
- it is not in the public interest, based on the needs and wishes of the people who live in the municipality where the proposed store would be located.After you apply for a CRSA, the Registrar will inform local residents and the municipality about the application by having a notice posted at the proposed store and on the AGCO’s website.
- The municipality or local residents have an opportunity to submit written submissions to the Registrar about whether the proposed store is in the public interest. The submissions must be sent within 15 calendar days after the notice is posted.
- Relevant submissions are limited to the following matters of public interest:
- protecting public health and safety;
- protecting youth and restricting their access to cannabis; and
- preventing illicit activities in relation to cannabis.
- the store, equipment and facilities do not comply with the Cannabis Licence Act, 2018 and its regulation, the Registrar’s Standards for Cannabis Retail Stores or requirements.
- you do not have sufficient control over the store, equipment and facilities
- you have made a false statement or provided false information in your application
- you already hold, or you and your affiliates between you already hold, 150 cannabis retail store authorizations
- the proposed cannabis retail store would be located less than 150 metres from a school or private school, as defined by the Education Act, 1990.
- the proposed cannabis store would not be enclosed by walls separating it from any other commercial establishment or activity
- the proposed cannabis retail store would include an outdoor area
- the proposed cannabis retail store could be entered from or passed through in order to access any other commercial establishment or activity, other than a common area of an enclosed shopping mall (note: this does not apply to spaces shared with other commercial establishments that are only accessible to employees of either business or other non-customers permitted by either business, as long as the entryway to the cannabis store is secured to prevent unauthorized access).
A licensed producer and its affiliates are eligible to apply for a single CRSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.
You may have conditions put on your CRSA to address any specific risks or concerns. There are also conditions in the Cannabis Licence Act, 2018 and its regulation that apply to CRSAs.
You cannot transfer your CRSA to another person or business.
Retail Manager Licence
Every cannabis retail store must have a licensed retail manager who performs certain duties within the cannabis retail store and holds a CRML. This includes people who:
- supervise, manage or hire employees of the store
- manage the sale of cannabis
- manage compliance issues relating to the sale of cannabis
- buy cannabis for the store
- enter into contracts for the store
The only people that can perform the duties listed above are people with a CRML or a CROL. If the holder of the CROL is a corporation, an individual must hold a CRML.
You are not eligible for a CRML if:
- you are under 19 years of age
- as a licensed retail manager, you will not act in compliance with the law, or with integrity, honesty or in the public interest
- you have been convicted or charged with certain offences:
- any offence under the Cannabis Licence Act, 2018 or its regulation
- certain offences under the Cannabis Control Act, 2017 and Cannabis Act or their regulations
- you have, or previously had, certain roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada):
- you are, or have been a member of the criminal organization
- you are, or have been involved in the criminal organization
- you contribute, or have contributed to, the activities of the organization
- you are carrying on activities that are not in compliance with certain laws.
- certain offences under the Cannabis Control Act, 2017 and Cannabis Act
- you have made a false statement or provided false information in your application
Generally, you must wait 2 years to apply again for a CRML if you:
- applied for a new CRML or renewal of a CRML in the past but were refused, or
- you had a CRML in the past but the licence was revoked.
You may have conditions put on your CRML to address any specific risks or concerns. There are also conditions in the Cannabis Licence Act, 2018 that apply to CRMLs.
You cannot transfer your CRML to another individual.
Retail Store Location
Municipalities:
Ontario municipalities had a one-time option to opt out of having cannabis retail stores in their communities. They had until January 22, 2019 to notify the AGCO that their council had passed a resolution to opt out of having cannabis retail stores. Municipalities that choose to opt out can opt in at any time—however once they have opted in, they may not reverse their decision.
- The AGCO's website has a list of municipalities that have decided not to allow cannabis retail stores.
- Municipalities that have opted-in may not create a licensing system respecting the sale of cannabis nor pass a bylaw that distinguishes land or building use for cannabis from any other kinds of use.
Proximity to Schools:
Things to Know Before You Begin:
As an applicant, it is your responsibility to ensure your proposed retail store location meets school proximity requirements at all times throughout the entire application process.
The use of iAGCO to check the eligibility of a potential retail location is not advice and does not function as a substitute for an applicant’s continued due diligence.
The submission of your application does not guarantee approval and does not guarantee or confirm that the proposed location is compliant with the school proximity location. The determination that an CRSA application satisfies all retail location requirements is made based on information available at the time of issuance of the CRSA and not at the time of submission of the application through iAGCO.
Please note that changes to an applicant's proposed location requires submission of a new application. Application fees are non-refundable.
The Registrar cannot issue an CRSA to a proposed cannabis retail store located less than 150 metres from a school or private school, as defined in the Education Act, 1990. This will be determined as follows:
- When the school or private school is the primary or only occupant of a building, 150 metres shall be measured from the property line of the property on which the school or private school is located.
- When the school or private school is not the primary or only occupant of a building, 150 meters shall be measured from the boundary of any space occupied by the school or private school within the building.
The distance between a proposed retail store and a school or private school is measured by a straight line from the closest point of the school property or boundary as described above to the closest point of the proposed retail store.
If either the store and/or the school is located on a floor other than the ground floor or main level in its respective building, the measure of the 150 metre distance may take into account vertical distance in assessing compliance with this requirement.
The above rules do not apply if the private school is located on a reserve or if the private school only offers classes through the internet.
Retail Store Requirements
There must be separation between your cannabis store and other businesses. If an existing retail space is renovated to create two or more spaces, the space that is intended to be a cannabis retail store must adhere to the listed criteria below and all the eligibility requirements set out in the Cannabis Licence Act, 2018 and its regulation.
The retail space where you will sell cannabis:
- must be enclosed by walls separating it from any other commercial establishment or activity
- does not include an outdoor area
- cannot be entered from or passed through in order to access any other commercial establishment or activity, other than a common area of an enclosed shopping mall (note: this does not apply to spaces shared with other commercial establishments that are only accessible to employees of either business or other non-customers permitted by either business, as long as the entryway to the cannabis store is secured to prevent unauthorized access).
In addition, the area where cannabis will be received or stored cannot be accessible by any other business or by the public. This does not mean that an establishment is required to have a separate door for product receipt. For example, if a premises has only one door, product could be received through this door outside of business hours, or access to the door could be restricted by security personnel at the time of product delivery.
Background Checks
As part of its review of your application for a new licence or authorization, or renewal licence or authorization, the AGCO may do background checks and investigations on applicants, or interested parties. You may be required to pay some of the costs of the background checks or investigations.
Training
In Ontario, anyone who works in a cannabis retail store must successfully complete an AGCO Board approved cannabis retail employee training program before their first day of work to support the safe sale of cannabis including the following people:
- holders of a CRSA
- holders of a CRML
- employees of a cannabis retail store including those who complete deliveries
- individuals providing security services for a cannabis retail store
Operating a Store
There are rules you must follow when operating your store.
You must:
- begin selling cannabis at your authorized store within one year of getting your CRSA, and continue to sell cannabis
- open only during permissible hours: between 9:00 a.m. and 11:00 p.m. on any day
- display the official cannabis retail seal. You must post the seal in a place where people can easily see it from outside the entrance to the store. The seal must be at least 17 centimetres wide and 20 centimetres long. You can choose to post the French version of the seal, or the English version, or both.
- remove the seal as soon as possible if your CRSA is revoked or not renewed
- post your CRSA in the store in a place where people can easily see it
- only sell cannabis that has been made by a producer licensed under the Cannabis Act (Canada) to make cannabis for commercial purposes and which is sold through the OCS
- keep records of specified information and activities
- record all sales
- make information about the responsible use of cannabis available to patrons
- ensure that all licensed managers and other employees working in your store successfully complete an AGCO Board approved cannabis retail employee training program prior to their first day of work.
- request identification of anyone who looks under 25 years old and be satisfied the person is at least 19 years of age prior to allowing them to enter the store.
You must not:
- sell cannabis or cannabis accessories to anyone who is under 19 years old
- allow anyone who looks under 25 years old to enter the store, unless you first request identification and are satisfied the person is at least 19 years of age
- sell cannabis to anyone who is intoxicated or appears to be intoxicated
- sell more than 30 grams of dried cannabis (or equivalent amount of another kind) to a person in a single visit
- hire anyone who is under 19 years of age.
You cannot sell cannabis or cannabis accessories from a display that allows self-service, or from a vending machine.
You must display your cannabis and cannabis accessories in a way that they cannot be seen by a young person, even from outside the store.
Delivery and Curbside Pick-up
Authorized cannabis retail stores are permitted to offer delivery and curbside pick-up services.
Note: Cannabis retail stores are not permitted to operate entirely or predominantly as delivery businesses.
Requirements for Delivery
- Delivery can only be done by the CRSA holder or their employees. Third-party delivery is not permitted.
- Deliveries can only be made to a residence or private place in Ontario (for instance, a hotel room would be considered a private place).
- Deliveries can only be made to a person who is at least 19 years old. If the person appears to be under 25 years of age, the authorization holder or employee completing the delivery must require the person to provide identification and must be satisfied that the person is at least 19 years old.
- Delivery must be at the address specified in the order.
- Records of deliveries must be maintained.
- Delivery orders must be placed with a specific store location.
- Delivery orders must originate and be fulfilled from that same store with products that are stored on-premises.
- Cannabis cannot be removed from the store for delivery unless an order has been received.
- If cannabis is removed from the store for delivery but the delivery is not completed, the cannabis must be returned to the same store from which the delivery originated on the same day, and it must remain there until the next day on which delivery is attempted.
- Cannabis may only be delivered at a time when the physical cannabis retail store is open to the public.
- If the store is in a premises whose owner or landlord requires it to be closed to the public during the permitted hours of operation, the store may still complete deliveries between 9:00 a.m. and 11:00 p.m. Examples of such a scenario include retail stores located within malls. However, a store cannot deliver if the landlord or owner requires it to be closed and is an interested person in the holder of the CRSA.
Requirements for Curbside Pick-Up
- Curbside pick-up transactions can only be completed by a CRSA holder or employee and must be completed in an area adjacent to the store that is captured by the store’s surveillance system.
Delivery Requirements to First Nations Communities
- Delivery to First Nations communities is permitted unless the community has requested delivery be restricted.
- First Nations band councils wishing to restrict delivery to their community can submit a band council resolution to the AGCO. The AGCO will notify all authorized retail stores when a band council resolution is received and the restriction would come into effect 30 days after such notice is provided, after which point any delivery to the First Nations community would not be permitted.
Requirements for Store Websites, Apps or other Similar Online Platforms
- For websites, apps or other similar online platforms used for the purposes of the cannabis retail store, licensees must take reasonable measures to ensure that customers accessing them are at least 19 years of age.
- Licensees must display the official Ontario cannabis retail seal and make available the applicable CRSA information (the authorization number, the holder’s name, the store’s operating name and the store address) on websites, apps or other similar online platforms.
Renewing your Licence or Authorization
You must apply to renew your licence or authorization before the current term expires.
As a courtesy, the AGCO will send a renewal reminder sixty (60) days prior to the expiration date of a licence or authorization. Additional reminders will be sent seven (7) and two (2) days prior to expiration if the renewal application has not yet been submitted.
If your renewal application and applicable fee(s) are submitted on or before the expiry date, your licence and/or authorization will be deemed to continue until your licence and/or authorization is renewed.
If your renewal application and applicable fee(s) are not submitted before the expiry date on your licence and/or authorization, it will expire and cannot be renewed.
How to submit a renewal application:
To begin your renewal application, log into your iAGCO account and click the "Renew" button next to the applicable licence/authorization.
Please note: The “Renewal In Progress” status on your iAGCO account is not confirmation that the renewal application has been submitted; it could mean that someone started a draft renewal but has not paid the fees nor submitted the application. You are encouraged to use measures to confirm that renewal applications are submitted, such as keeping iAGCO Application Confirmation emails or Application Summaries. If you have shared your access code with others and/or have previously permitted others to submit applications on your behalf, notify the AGCO in writing when that permission is revoked.
Effect of non-renewal of Cannabis Retail Manager Licences
If your CRML expires, you cannot perform any of the functions under subsection 5(1) of the Cannabis Licence Act, 2018.
Holders of CROLs are responsible for ensuring that anyone performing the functions under subsection 5(1) of the Cannabis Licence Act, 2018 hold an active CRML.
- The status of AGCO-issued licences can be searched online via iAGCO
- QR codes on the licence can be scanned to confirm authenticity and/or to confirm the licence status
Effect of non-renewal of Cannabis Retail Operator Licences
Subsection 12(1) of the Cannabis Licence Act, 2018 indicates that if a holder’s CROL is revoked or fails to be renewed, any CRSA held by the holder are revoked from the time of the CROL revocation or non-renewal.
Effect of non-renewal of Cannabis Retail Store Authorizations
Subsection 12(3) of the Cannabis Licence Act, 2018 indicates that if a CRSA is revoked or fails to be renewed and the Registrar considers it appropriate in the circumstances to do so, the Registrar may, without issuing a proposal, revoke or suspend:
- Any other CRSA held by the same holder;
- The holder’s CROL; or
- Both.
You must cease operation of any retail stores where a CRSA has expired or has been suspended or revoked. You are prohibited under the Cannabis Control Act, 2017 from selling or distributing cannabis.
There are penalties for offences related to unauthorized sale or distribution, false representation as an authorized cannabis retailer, etc. under the Cannabis Act, Cannabis Control Act, 2017, and/or the Cannabis Licence Act, 2018. You are reminded of your obligations to comply with all laws and regulations and of your responsibility to renew on time.
If you no longer require your cannabis licence(s) and/or authorization(s), more information on requests to cancel can be found at: Cannabis Retail Regulation Guide: Modifications to Existing Licences / Authorizations
Cannabis Retail - Conditions
As part of the AGCO’s risk-based licensing approach, one or more conditions may be attached to a CROL, CRML and/or CRSA by the Registrar to help the licensee minimize risks identified during the assessment process. Below is a complete list of the conditions approved by the AGCO Board of Directors, which the Registrar may impose:
# | Condition | |
---|---|---|
Honesty, Integrity and Financial Responsibility | ||
1 | The holder of the licence and/or authorization shall notify the Registrar in writing within five (5) business days of entering into any agreement with respect to changes in ownership, control or affiliations of the licence holder or authorized store and provide proof that the agreement complies with all regulatory requirements and/or the lottery rules. | |
2 | A licensed retail manager or the licensed operator must be onsite at the authorized store at all times while the authorized store is open. | |
3 | The holder of the licence and/or authorization shall have a written code of conduct for employees and provide proof that employees have read and understand the requirements. | |
4 | The holder of the licence and/or authorization must notify the Registrar in writing within five (5) business days of any new source of funds used to support operations of the holder of the licence and/or the authorization or operations of the authorized store. | |
5 | A licensed retail manager must perform the following duties at the store: (DUTIES) | |
Minors | ||
6 | The holder of the licence and/or authorization shall ensure that the identification of every individual who appears to be under the age of 25 years is inspected at entrance(s) to the authorized store and at the point(s) of sale. | |
Safety and Security | ||
7 | The holder of the licence and/or authorization shall maintain a log confirming the security camera equipment is functioning at all times. The logs shall be made available for inspection and review upon request by the AGCO. | |
8 | The holder of the licence and/or authorization shall retain all surveillance recordings for at least XXX day(s). | |
9 | The holder of the licence and/or authorization shall ensure that there is a sufficient number of licensed and visibly identifiable security personnel at all times while the authorized store is open. | |
10 | The authorized store shall be staffed with at least XX (number of) licensed and visibly identifiable security guard(s) from XX:XX (am/pm) until closing. | |
11 | The authorized store must be equipped with a working monitored alarm system to detect and log attempted unauthorized access to and unauthorized movement within the authorized store premises. | |
12 | The holder of the licence and/or retail store authorization shall ensure that measures are in place to prevent and address disorderly conduct on the authorized store premises, property adjacent to and in the vicinity of the premises by persons either waiting to enter or persons exiting the premises. | |
Prohibited Person(s) | ||
13 | The holder of the licence and/or authorization shall ensure that the following individual(s) is/are not permitted to enter or be at the authorized store: (NAMES) | |
14 | The holder of the licence and/or authorization shall ensure the following persons have no involvement in the business operations of the authorized store, including as an officer, director, shareholder or owner and/or have no involvement or beneficial or financial interest in the business or ongoing operations of the licence: (NAME(S) | |
15 | The holder of the licence and/or authorization shall ensure that the following individual(s) is/are not permitted in the authorized store except to perform duties arising from his/her position as landlord or sub-landlord in accordance with the following terms: (NAME(S) (TERM (S) | |
16 | The holder of the licence and/or authorization shall ensure that the following individual(s) is/are not involved directly or indirectly in the operation and financing of the business: | |
17 | The holder of the licence and/or authorization shall not employ the following individual (s) in any capacity: (NAME(S) | |
Product Security and Record-Keeping | ||
18 | The holder of the licence and/or authorization must ensure that physical inventory counts are carried out on a daily basis for each day that the authorized store is open, that a log is kept, and any discrepancies are reported in writing to the AGCO within 24 hours. | |
19 | The holder of the licence and/or authorization must submit in writing a report to the AGCO on a biweekly/weekly basis of all inventory movements of cannabis products. | |
20 | The holder of the licence and/or authorization shall ensure that all employees are subject to screening for stolen product before exiting the authorized store. | |
21 | The holder of the licence may not transport cannabis between their authorized store locations. | |
22 | The holder of the licence and/or authorization must notify the AGCO in writing within 72 hours in advance of destroying any cannabis. | |
23 | The holder of the licence and/or authorization must ensure that after operating hours, all cannabis is locked in a secure storage room accessible only by authorized staff. | |
24 | The holder of the licence and/or authorization must maintain a list of employees that are authorized to access the secure cannabis storage room. | |
25 | The secure cannabis storage room may not be used for any other purpose other than the storage of cannabis. | |
26 | The holder of the licence and/or authorization must ensure that sensory display containers are physically tethered or affixed to a secure surface. | |
27 | The holder of the licence and/or authorization may not use sensory display containers in the authorized store. | |
28 | The holder of the licence and/or authorization must ensure that patrons do not handle any cannabis until it is purchased. | |
Compliance Plans | ||
29 | The holder of the licence and/or authorization (applicant) shall submit by (DATE) a proposed compliance plan to the Registrar for review and filing that addresses the objectives identified by the Registrar, including but not limited to the following issues: (ISSUE TYPES) | |
30 | The holder of the licence and/or authorization (applicant) shall submit by (DATE) a proposed compliance plan to the Registrar for review and approval that addresses the objectives identified by the Registrar, including but not limited to the following issues: (ISSUE TYPES) | |
31 | The holder of the licence and/or authorization (applicant) shall comply with the compliance plan filed with the Registrar. | |
32 | The holder of the licence and/or authorization (applicant) shall comply with the compliance plan approved by the Registrar. | |
33 | The holder of the licence and/or authorization shall keep the compliance plan onsite at their authorized store(s) and make it available to AGCO upon request. |
Cannabis Retail - Plans
As part of the AGCO’s risk-based licensing approach, the Registrar may require that a licensee prepare one or more plans to address areas of risk identified during the assessment process. Below is the type of plan the Registrar may require:
Compliance Plan
A compliance plan is designed to ensure that the retailer is operating in compliance with the overall cannabis retail regulatory regime in place in Ontario, helping to protect the public-at-large, as well as the licensee, from potential harm caused when regulatory requirements are not followed. The plan must support the licensee in getting back into compliance by identifying best practices, policies and other requirements that the licensee will adopt in order to achieve specific and general compliance goals, with a primary focus on the regulatory requirements that are specific to retail cannabis licensees.
This includes reasonably addressing issues such as record-keeping and inventory management, safety and security, management structure and policies, preventing access by minors, preventing illicit activity, the type of products available for sale, staff training, store policies, internal control issues, and other general compliance issues.
Cannabis Retail - Modifications to Existing Licences/Authorizations and/or Changes to Information
Removing a Condition on a Cannabis Licence/Authorization
If you have a condition(s) on your CROL, CRML, and/or CRSA, and circumstances have changed, you may apply to have a condition removed. Depending on the manner in which the condition was added to your licence and/or authorization you will be required to apply to either the Registrar of the AGCO or the Licence Appeal Tribunal.
You may apply to the Registrar to have a condition on your licence and/or authorization removed if:
- The condition was imposed on a licence/authorization by the Registrar with your consent pursuant to the Cannabis Licence Act, 2018.
- The condition was imposed on the licence/authorization by the Registrar as part of the AGCO’s risk-based licensing process. Risk-based licensing conditions can only be removed if the Registrar determines that the risk designation is no longer necessary.
Please note that the Registrar will only consider removing a condition if the circumstances that required it have changed and it is deemed to no longer be necessary. To request a removal of conditions, you must log into iAGCO, select "Request a Change", select the appropriate licence and/or authorization and select "Removal of Condition(s) on Consent" to submit all relevant information and supporting documentation.
You may apply to the LAT to have a condition on your licence and/or authorization removed if:
- The condition was imposed by a panel of the LAT after a hearing
In this case, you must consult the LAT website for the applicable forms and process.
Changing Legal Entity Type
Cannabis licences and/or authorizations are non-transferable. If you are the holder of a CROL and/or CRSA and would like to change your legal entity type (for example, sole proprietor to a corporation) you must submit a new application and applicable fees.
Change Operator at Existing Authorized Store
Cannabis licences and/or authorizations are non-transferable. If a new operator intends to take over an existing authorized store from the existing licensee, a new CRSA application and applicable fees must be submitted.
If there is cannabis inventory already onsite at the authorized retail store, the existing licensee and the applicant must reach an agreement regarding the inventory. If the applicant does not wish to take on the cannabis inventory the licensee must determine what to do with inventory (as outlined in Standard 2.2, All cannabis must be stored securely until it is sold, destroyed, or returned to the OCS or the Licensed Producer).
Corporate Structure Changes
To notify the AGCO of corporate structure changes as outlined in the Registrar’s Standards for Cannabis Retail Stores, you must log into iAGCO, select “Request a Change”, select the appropriate CROL and select “Corporate Structure Update” to submit all relevant information and supporting documentation, including disclosure.
New Sources of Funding and/or Agreements
The holder of a CROL is required to notify the Registrar within five (5) business days of entering into any agreements or of any new sources of funds used to support the operations of their cannabis business.
To disclose third party agreements or new sources of funds, you must log into iAGCO, select "Request a Change", select the appropriate CROL and select "New and/or Changes to Agreements or Sources of Funds" to submit all relevant information and supporting documentation.
Adding and/or Changing Names
Licensees are reminded that their store’s operating name must match what is set out on the CRSA per the Registrar’s Standards for Cannabis Retail Stores.
If the licensee is a corporation, partnership or sole proprietorship, its business trade (operating) name may have to be registered under the Business Names Act. For information and forms, please see the Ontario.ca Central Forms Repository. Forms must be forwarded to the Companies and Personal Property Security Branch for processing.
Note:
- CRML holders changing their legal name should submit this change in relation to their CRML.
- CROL holders changing the name of the legal entity should submit this change in relation to their CROL and any CRSA they hold.
- CROL holders changing the operating name of their store must submit this change in relation to their CRSA.
To request name change, you must log into iAGCO, select "Request a Change", select the appropriate licence and/or authorization and select "Adding and/or Changing Names" to submit all relevant information and supporting documentation.
Request to Cancel a Licence and/or Authorization
The Registrar may cancel a licence or authorization if the holder makes a request to the Registrar in writing and surrenders the licence or authorization.
If you are a licensed operator permanently closing an authorized store, in addition to notifying the AGCO of the permanent closure through the notification matrix, you must also submit a separate request to cancel your authorization.
To request a cancellation of your licence and/or authorization, you must log into iAGCO, select "Request a Change", select the appropriate licence or authorization and select "Request to Cancel" to submit the request and to provide the required documentation.
Note:
- If the holder of both a CROL and CRSA wants to cancel their CROL, they must submit a request to cancel and surrender each CRSA to the Registrar together with the CROL.
- Operators must comply with the requirements specified by the Registrar respecting any cannabis left unsold or undistributed as a result of the cancellation and ensure that final reporting obligations are completed.
- If the licensee is a corporation, a board resolution confirming the decision to cancel may be required.
Cannabis Retail Operator Licence, Cannabis Retail Store Authorization and Cannabis Retail Manager Licence - Risk-Based Licensing
The AGCO employs a risk-based approach when issuing and regulating CROLs, CRMLs, and CRSAs. Risk-based licensing allows the AGCO to encourage good business practices throughout the industry and to focus its own regulatory resources where they will make the most difference.
Although there is always some risk attached to the sale of recreational cannabis, the AGCO recognizes that due to certain variables (such as location, past history and experience), some establishments and individuals pose a greater risk to the public interest and/or of non-compliance with the law. Using risk-based licensing allows the AGCO to base its decisions on risk assessments and its approach to regulation on encouraging compliance rather than relying solely on enforcement following any instances of non-compliance.
Risk-based licensing assists CROL, CRML and CRSA holders in operating their establishments in a safe, responsible, and compliant way, and ensures licence/authorization holders continue to meet all eligibility criteria.
The authority to carry out a risk-based licensing regime is given to the AGCO under Section 6 (5) of the Cannabis Licence Act, 2018.
How Risk-Based Licensing Works
There are four key principles behind risk-based licensing:
- To identify persons or places that pose specific risks to the public interest;
- To lessen risks and ensure compliance with the Cannabis Licence Act, 2018, and its regulation, and the Registrar’s Standards for Cannabis Retail Stores through the entire lifecycle of a licence;
- To reduce the administrative burden for those who pose a lower risk, where possible; and
- To focus more AGCO resources on those cannabis retail stores that pose enhanced risks.
The application of risk-based licensing can occur at any point in the lifecycle of a CROL, CRML, and CRSA.
New applicants proceed through a three-step process:
- After an application for a licence or authorization, is received, an eligibility assessment process takes place. During the initial application or authorization review, the Registrar uses specific criteria to assess the risk(s) posed to the public interest, and of non-compliance with the law.
- After reviewing all the available information on the applicant, the Registrar assesses the risks and determines if the licence should proceed to an enhanced review.
- If the Registrar believes that no conditions need to be placed on a licence, or if a licensee has taken steps on their own to recognize and manage any risks, then these establishments will see no change in the way that their licences are administered.
- If the Registrar believes that a licensee may need more assistance and support to remain compliant with their regulatory obligations, following the eligibility assessment review, then conditions may be placed on the licence or authorization, and/or more AGCO resources will be focused on the licensee in order to mitigate any risks.
Applicants renewing their licence or authorization, or having a condition on their licence, would only proceed through steps 2 and 3.
During the lifetime of a licence or authorization, the Registrar can reassess the risk posed by the licensee. This reassessment can occur either because the licensee requests a reassessment, or because the Registrar becomes aware that there has been a change in circumstances and there should be a reassessment. At each of these times the Registrar may add, remove or amend one or more conditions.
Please note that risk-based licensing does not replace or negate all eligibility criteria, and licensees are required to comply with the Registrar’s Standards for Cannabis Retail Stores, as well as all applicable laws and regulations, including the Cannabis Control Act, 2017, the Cannabis Licence Act, 2018, and Ontario Regulation 468/18.
Suspension or Revocation of Licences and Authorizations
All owners/operators of cannabis retail stores along with store managers are subject to the provincial Cannabis Licence Act, 2018, its regulations and the Registrar's Standards for Cannabis Retail Stores.
If you do not comply with your regulatory obligations or are no longer eligible for your licence or authorization, your licence or authorization may be suspended or revoked. You will be advised of the licence or authorization being suspended or revoked and can request a hearing before the LAT.
In some cases, depending on the reasons, the licence or authorization may be suspended or revoked immediately.
If your CRSA is suspended, you must post a sign about the suspension in a place where people can easily see it from outside the store.
If your CRSA is revoked, suspended or cancelled, you must comply with any requirements the Registrar provides to you regarding the disposal of cannabis that has not been sold or distributed.
Inspectors
AGCO Inspectors may visit the retail store location to assess your compliance with your regulatory obligations. You must allow the inspection, and you must not interfere with the Inspector, refuse to answer questions related to the inspection, or provide false information.
When doing an inspection, an AGCO Inspector may:
- ask you for and look at certain records that are relevant to the inspection
- take certain records away from the store to review, examine, test or copy. In this case, the Inspector will give you a receipt confirming which records have been taken.
- After the inspector has taken the records, you can request that the records be made available to you.
- The records will be returned to you in a reasonable time, unless the records cannot be returned because of the testing done.
- take photographs or other recordings
- ask about financial transactions, records or other matters relevant to the inspection.
If an inspector asks you for a record, you must provide it. You must also help the Inspector understand the record or provide it in a readable form.
Inducements
If you have a CROL, a CRSA and/or a CRML, you and your employees are not permitted to accept material inducements or benefits from LPs or their representatives.
You are not allowed to give or offer to give away cannabis or cannabis accessories to someone without charge. You cannot offer things or services to induce a person to purchase cannabis.
Inducements between licensed producers and retailers
The Registrar’s Standards for Cannabis Retail Stores generally prohibit licensees from accepting or entering into agreements for items, benefits, payments, or services with LPs and their representatives with the purpose to promote or increase the sale of a particular product by the licensee or their employees. In other words, licensees are not allowed to ask for or accept material inducements.
There are several exemptions to this general prohibition, which are listed below, with some additional context.
Items, Benefits or Services of Nominal Value:
The standards under Section 6.0: Advertising and Promotions state that licensed retailers may accept or enter into agreements with an LP or their representative for items, benefits or services of nominal value. Nominal value items, benefits or services, unlike financial or material inducements, are those that are of inconsequential value.
The AGCO does not prescribe a specific monetary value for what constitutes an item, benefit or service of nominal value. The determination is contextual and considers a number of factors which may include:
- Are you likely to change your behaviour toward an LP or the LP’s product after receiving an item, benefit or service?
- If yes, then this item, benefit or service would not be considered to be of nominal value
- Is the item, benefit or service valued at an amount that defrays your operational costs?
- Nominal value would not be significant enough to defray operational costs
- How many items, benefits or services have been provided over a period of time?
- Nominal value is associated with a low volume of benefits over a period of time (i.e., the benefits are provided infrequently, and do not add up to a substantial value over time)
The following is a list of examples of items, benefits or services that may be considered nominal. Note that this list is not exhaustive, and it is possible for these examples to be material inducements, depending on the contextual factors above.
- T-shirts
- Hats
- Lanyards
- Inexpensive cannabis accessories
- Gift bags of inexpensive items related to cannabis
Items, Benefits and Services Related to Education or Training:
Standard 6.5 also allows licensed retailers to accept items, benefits or services that are related to education or training. Examples of items, benefits and services related to education and training may include:
- Education or training sessions or materials
- Including education or training outside of the licensed retail store (e.g., participating in such a session as part of a tour of an LP’s facility)
- Modest meals and refreshments during the education or training
- Cannabis product samples directly related to education or training
- The expectation is that sample sizes would be a small quantity of a particular strain of cannabis or product available in Ontario
- Samples of a particular strain of cannabis or product should be received infrequently
Sale of Business Data:
The sale or sharing of personal customer information continues to be prohibited by Canadian law, unless expressly consented to. Licensed retailers may enter into agreements with LPs for the sale of data for business intelligence purposes. The AGCO expects that the fee charged by the licensee and paid for by the LP should be at fair market value. Licensed retailers are expected to follow applicable privacy laws and regulations.
Ownership Interests and Franchise Agreements:
Financing and lease agreements, as well as franchise agreements between retailers and LPs or their affiliates, are permitted under Standard 6.5.
Store Brand Cannabis Products:
Agreements between retailers and LPs for store brand cannabis products (also known as white labels, private labels, private brands, and in-house/house brands) are permitted under Standard 6.5.
Nature of Permissible Activities
Standard 6.6 sets out constraints on agreements that are permissible under Standard 6.5, to ensure that they are not used as a method for material inducements.
Agreement between retail licensees and LPs must not:
- Define the amount of product from the LP or its affiliates that must be offered for sale at the retail store;
- Require a defined amount of display space in the retail store to be dedicated to product from the LP or its affiliates;
- Provide merchandising, marketing or promotional activities to the LP or its affiliates; or
- Restrict the ability of the LP or its affiliates to sell its product at other retail stores, or the ability of the licensee to sell products from other LPs producers or their affiliates.
Prohibited Activities
Aside from the exemptions set out in Standard 6.5, the Standards on inducements set out a general prohibition on agreements for items, benefits, or services between licensed retailers and LPs and their representatives.
Examples of prohibited activities include but are not limited to:
- Sale of in-store or online advertising space
- Licensed retailer requiring or receiving payments from an LP for advertising of the LP
- Licensed retailer co-branding advertisements with LPs (i.e., sharing the cost of content development for the purposes of marketing and promotional activities)
- Product features in-store or online
- Licensed retailers requiring or receiving payments from LPs for advertising space, preferred shelf placement of products, or promotional activities either in-store or online
- Cannabis for sensory display purposes
- Licensed retailers receiving cannabis for sensory display purposes from LPs
- Fixtures or physical assets
- Licensed retailers receiving physical assets (e.g., branded and non-branded refrigerators, televisions, computers, projectors, monitors for product listing boards, appliances such as rosin presses) from LPs
- Items essential to the operation of the business
- Licensed retailers receiving things from an LP that could be considered essential to the operation of their business (e.g., staff uniforms, furniture, appliances, renovations, point of sale system or equipment, security equipment)
- Sale incentives
- Licensed retailers or their employees receiving any benefits from an LP tied to the sales performance of any given product or brand (e.g., concert tickets, gaming consoles, luxury goods)
- Cash or rebates
- Licensed retailers receiving cash or cash rebates, product or product rebates, or price discounts from LPs in exchange for listing particular products at below-market prices
- Travel or accommodation for education or training
- Licensed retailers or their employees receiving travel or accommodation related to education or training, directly or indirectly from LPs
- Monetary compensation for education or training
- Licensed retailers or their employees receiving monetary compensation for receiving education or training from LPs
Recordkeeping
If you enter into an agreement pursuant to Standard 6.5, you must follow the additional record keeping requirements set out in Standard 8.1, requirement 10.
To meet cannabis regulatory requirements under Standard 8.1, requirement 10, you are required to:
- track agreements and acceptance of items, benefits or services (re. Standard 6.5) using the AGCO Cannabis Regulatory Reporting Template for Registrar’s Standard 8.1.10
As with any other records under Standard 8.1, these records must be made available to the AGCO upon request.
Advertising and Promotion
Under the Cannabis Licence Act, 2018 the Registrar has the authority to establish standards and requirements with respect to a number of areas, including advertising and promotional activities.
Regulatory requirements for advertising and promoting cannabis, cannabis accessories or the sale of cannabis can be found in section 6 of the Registrar’s Standards for Cannabis Retail Stores.
Please note cannabis retail store operators are subject to the federal Cannabis Act and its regulations, which outline permissible and prohibited advertising and promotional activities.
July 1, 2020 a regulatory amendment to the Smoke Free Ontario Act, 2017 exempt cannabis retail stores from the ban on the display of vapour products and clarify that cannabis retail stores may sell flavoured cannabis vape products.
In general, advertising and promotion includes any public notices, representations or activities that aim to attract attention to cannabis, cannabis accessories or the sale of cannabis.
Monetary Penalties - Cannabis
Monetary penalties are one of the compliance tools the AGCO may use when licensed operators, retail store managers or authorized stores are found to have acted out of compliance with the Cannabis Licence Act, 2018, its regulation or the Registrar’s Standards for Cannabis Retail Stores.
A monetary penalty is a financial consequence that a licensee or authorized retailer is required to pay as a result of a contravention of the Cannabis Licence Act, 2018, its regulation or the Registrar’s Standards for Cannabis Retail Stores. Monetary penalties are a step towards ensuring compliance that allows the AGCO to take appropriate regulatory action that is greater than a warning but not as severe as a licence or authorization suspension or revocation. The use of monetary penalties aligns Ontario with the majority of other Canadian jurisdictions, which have some form of monetary penalty system.
Schedule of Monetary Penalties: Cannabis Licence Act, 2018 and Regulation 468/18
For more information, see the Monetary Penalties page.
Objectives of Cannabis Legislation and Regulations
The Government of Canada has legalized recreational cannabis in Canada. The Cannabis Act is the legal and regulatory framework for controlling the production, distribution, sale and possession of recreational cannabis in Canada and was put in place by the federal government with the purpose of keeping cannabis out of the hands of youth, keeping profits out of the pockets of criminals and protecting public health and safety by allowing adults access to legal cannabis.
Under the Cannabis Act, each province and territory is responsible for setting its own rules for how cannabis can be sold, where stores can be located, and how stores must be operated. Provinces and territories may also set additional restrictions they feel are necessary. As a result, the Government of Ontario has worked to implement a safe, legal system for cannabis retail that is intended to protect youth and combat the illegal market for cannabis.
Under Ontario’s regulatory model, the AGCO is responsible for licensing eligible retail store operators, authorizing cannabis retail stores and regulating the sale of cannabis. The AGCO’s focus is on the safe, responsible and lawful sale of cannabis, consistent with the legislation enacted by the provincial government. Its regulatory objectives are to ensure that the retail sale of cannabis in Ontario is carried out with honesty, integrity and in the public interest as set out in the Cannabis Licence Act, 2018 its regulation and the Registrar’s Standards for Cannabis Retail Stores.
Ontario's Cannabis Retail Regulation Landscape
Legal Cannabis Supply Chain
Health Canada regulates the cultivation and processing of cannabis and licenses producers, called “Licensed Producers”.
Licensed Producers are the only legal growers/producers of cannabis products in Ontario.
The Ontario Cannabis Store is a Crown agency of the Government of Ontario and is the only legal supplier (wholesaler) of cannabis for private retail stores in Ontario. The OCS operates the provincial online store for recreational cannabis sales in Ontario. The AGCO does not regulate the OCS.
The Licences and Authorizations you need from the AGCO
Retail Operator Licence
To be able to legally open a retail store to sell recreational cannabis, you must get a Retail Operator Licence. To get this licence, you must meet all of the eligibility criteria set out in the Cannabis Licence Act, 2018 and its regulations.
A Retail Operator Licence allows you to operate a retail store in Ontario.
Retail Store Authorization
You must have a Retail Store Authorization for your store. The Cannabis Licence Act, 2018 and its regulations require that each store meet certain requirements. Requirements relate to such matters as the store layout and location. The regulations also give residents of the municipality in which the proposed store would be located the opportunity to provide their input.
Cannabis Retail Manager Licence
In order to ensure the responsible sale of cannabis, there must be at least one licensed manager for each authorized store location. The Cannabis Licence Act and its regulations set out eligibility criteria for the person who will have management responsibilities in authorized stores. This includes having responsibility for: purchasing cannabis for the store; sale and distribution of cannabis for the store; managing compliance issues; and hiring, supervising and managing employees.
If you are a sole proprietor, or in a partnership between two or more individuals, and will be both the licensed operator and performing the duties of the retail store manager for a particular store, you do not need to get a Cannabis Retail Manager Licence for your store.
The Local Community
Municipalities
Ontario municipalities had a one-time option to opt out of having cannabis retail stores in their communities. Municipalities had until January 22, 2019 to inform the AGCO if they wish to opt out. Municipalities that choose to opt out can opt back in at any time - but once they are in, they may no longer opt out.
Residents
Residents in the municipality of a proposed cannabis store location have an opportunity to share their views with the AGCO before a retail store is authorized. The Registrar must refuse to authorize the store if it is in the public interest to do so.
The only areas of public interest the Registrar can consider, as defined by the regulations, are related to public health and safety, protecting youth and restricting their access to cannabis, and preventing illegal activities in relation to cannabis.
First Nations Communities
Delivery of cannabis to First Nations communities is permitted unless the community has requested delivery be restricted.
First Nations band councils wishing to restrict delivery to their community can submit a band council resolution (BCR) to the AGCO. The AGCO will notify all retailers when a BCR is received and the restriction would come into effect 30 days after such notice is provided, after which point any delivery to the First Nations community would not be permitted.
Cannabis Licence Act, 2018 and its Regulation
The full text of the Cannabis Licence Act, 2018 and Ontario Regulation 468/18 can be viewed on the Government of Ontario’s website.
Registrar's Standards for Cannabis Retail Stores
(Last Update: June 2022)
Introduction
The Cannabis Licence Act, 2018 and its regulation provide the Registrar with authority to establish standards and requirements in the following areas:
- store premises, equipment and facilities, including surveillance and security
- the prevention of unlawful activities
- advertising and promotional activities
- training and other measures related to the responsible use, sale or distribution of cannabis
- the protection of assets and security of records
- compliance with the federal cannabis tracking system.
These Standards are outlined in the Registrar’s Standards for Cannabis Retail Stores. Licensees are required to comply with the Registrar’s Standards for Cannabis Retail Stores, as well as all applicable laws and regulations, including the Cannabis Control Act, 2017, the Cannabis Licence Act, 2018, and Ontario Regulation 468/18.
The objective of a standards-base
- record-keeping and measures to maintain confidentiality ad regulatory model is to shift the focus from requiring licensees to comply with a specific set of rules or processes, toward the broader regulatory outcome or objectives they are expected to achieve. Since there may be many ways for a licensee to meet the Standards, licensees have the flexibility to determine what works best for their business, thereby strengthening regulatory outcomes without needlessly burdening regulated entities.
Holders of a CROL are responsible for meeting all Standards. Where not specified otherwise, Standards also apply to holders of a CRML.
The Registrar’s Standards for Cannabis Retail Stores will be reviewed and revised on a regular basis to ensure that they are effective in mitigating risks as the cannabis retail sector matures.
Click here for the Registrar’s Standards for Cannabis Retail Stores
Cannabis Licensing and Application Process
Cannabis Retail Licensing
The AGCO is responsible for administering the Cannabis Licence Act, 2018 and its regulation, which comprise the licensing and regulatory regime for most aspects relating to the retail sale of recreational cannabis in Ontario. The following information is intended to assist you in applying for a CROL, a CRSA and/or a CRML.
Things to Know Before You Begin
Processing Times
- The AGCO has a dedicated cannabis licensing team to work with CROL, CRSA and CRML applicants.
- Applications must be submitted online through the iAGCO portal and include all the required information.
- Circumstances that may result in longer than usual processing times for CROL applications include:
- Higher risk applicant eligibility factors requiring closer inspection (e.g. criminal, financial and other applicant/affiliate background considerations). For more information, please see the Cannabis Retail Licences and Authorization section of this Guide
- Complex corporate structure
- Incomplete application submissions requiring multiple discussions with the applicant. For more information, please see the Application Process section of this Guide
- Applicant delays in responding to the AGCO when it requests clarifications or further information
- Applicant delays in providing the AGCO with fully executed agreements with third parties and disclosure information on all parties with an interest in the business
- Circumstances that may result in longer than usual processing times for CRSA applications include:
- Incomplete application submissions requiring multiple discussions with the applicant
- Applicant delays in responding to the AGCO when it requests clarifications or further information
- High volume of written submissions received through the public notice process
- The store is not ready for pre-authorization inspection
- The store does not meet pre-authorization inspection requirements.
- Please note that the CRSA application will not be approved if it is in a municipality that has opted out of having cannabis retail stores.
Licence Holder Responsibilities
For complete details about your legal responsibilities as a CROL, CRML or CRSA holder, refer to the Cannabis Licence Act, 2018 and its regulation which is available online or by contacting Publications Ontario at 416-326-5300 or toll-free at 1-800-668-9938.
Personal and Entity Disclosure Requirements
There are personal and entity disclosure requirements when applying for a CROL, CRSA and CRML. Entity/individual disclosure information must also be provided by applicant corporations and by all corporations directly or indirectly holding 10% or more of shares. For more information, see the Personal and Entity Disclosure Requirement Guide.
Municipal Requirements
Prior to applying for a CRSA, please check with your local municipality to ensure that your premises meets municipal requirements for retail stores and that it is not a municipality that has opted out of cannabis retail sales.
Public Notice
Once a complete CRSA application is received by AGCO:
- The applicant will be notified, via iAGCO, that they have 24 hours to post a placard at the location of the proposed retail store location. The placard must be posted for 15 calendar days and it will indicate that an application has been submitted for a cannabis retail store at that location.
- All CRSA applications that are undergoing the public notice process will be searchable on the AGCO’s iAGCO portal.
After the public notice period has ended, the AGCO will provide the applicant with copies of any written submissions received from local residents and from the municipality as a result of the public notice process in response to the application. Authorization applicants will have five (5) calendar days to provide a written response to the Registrar related to any written submissions received from local residents and/or the municipality and the Registrar will consider the applicant’s response, if any.
- Relevant submissions are limited to the following matters of public interest:
- Protecting public health and safety
- Protecting youth and restricting their access to cannabis
- Preventing illicit activities in relation to cannabis.
For more information on the public notice process, please see the Public Notice for a Cannabis Retail Store Authorization section of this guide.
Application Process for Operating a Cannabis Retail Store on a First Nations Reserve
To operate a retail store and sell recreational cannabis in a store on a First Nations reserve, you must apply for a CROL and a CRSA.
• You may only apply for a CROL and a CRSA if you submitted a complete CRSA application online form through iAGCO .
To be eligible to obtain a CRSA Retail Store Authorization, applicants for a cannabis retail store to be located on a First Nations reserve must demonstrate that the band council has approved the location of the prospective cannabis retail store.
A band council resolution must:
- Be uploaded as a requirement to complete the Retail Store Authorization Intent to Apply
- Approve the location of the store on the reserve
To receive a CROL or CRSA for a cannabis retail store to be located on a First Nations reserve, a prospective operator must also meet all the requirements of the Cannabis Licence Act, 2018.
For more information about the application process for operating a cannabis retail store on a First Nations reserve, please see the Application Process for a Cannabis Retail Store on a First Nations Reserve web page.
Fees and Payment
Licence and Authorization Fees
- Fee
- You must pay the required fee when you first apply for a cannabis retail-related licence or authorization.
- The fees for a CROL for a CRSA or for a CRML are for a two-year period, after which time you will have to renew them.
- Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable.
- Renewal Fee
- If you wish to continue operating your business or being employed as a retail manager, you will have to pay a renewal fee before your licence or authorization expires.
- The renewal fee covers some of the ongoing costs of regulation, which includes activities such as inspection, and customer service support.
- When you renew, you can select a two-year or four-year renewal term for any of the three licence or authorization types. There is no difference in the overall cost per year.
- Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable.
Fee Payment
- When using online services, all payments under $30,000 must be made by Visa, MasterCard, Visa Debit or MasterCard Debit.
- Payments of $30,000 or more must be made by money wire transfer or electronic funds transfer. For more information, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876.
- Cheques and cash are not accepted as forms of payment when using iAGCO online services.
- Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable.
- Additional fees may be required for investigations.
For more information, visit the Fees and Payment section of this Guide.
Important Notice
- Each statement made in your application is subject to verification.
- It is a serious matter to knowingly provide false information on the forms and on any attachments. The provision of false, incomplete, or misleading information or the omission of information on the forms or in the documents submitted with your application, or the failure to notify the Alcohol and Gaming Commission of Ontario of any material changes to this information which occur after this application is filed, may also result in the refusal, suspension or revocation of your licence.
- If you require assistance with your application, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876
The Ontario Cannabis Store
The Ontario Cannabis Retail Corporation (OCRC), operating as the Ontario Cannabis Store (OCS), is the exclusive wholesaler of cannabis in Ontario to authorized private retail stores. Private retailers can only purchase cannabis from the OCS. Retail store operators will be required to enter into a wholesale supply agreement with the OCS in order to begin purchasing cannabis for resale in their authorized stores.
Retail store operators should contact the OCS once they have been issued their CROL from the AGCO. For more information, visit learn.ocswholesale.ca or call 1-877-627-1627.
Cannabis Retail Licences and Authorizations
The following licences/authorizations are required for the operation of a cannabis retail store(s) in Ontario:
Cannabis Retail Operator Licence
To operate a retail store and sell recreational cannabis, you must apply for a CROL. To get this licence, you must meet all of the eligibility criteria set out in the Cannabis Licence Act, 2018 and its regulation.
Eligibility
For full details on the eligibility requirements for a CROL please refer to the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.
Additionally, a person is not eligible for a CROL:
- If the AGCO is not satisfied that you will exercise sufficient control, either directly or indirectly, over the cannabis retail business
- If you are in default of filing a tax return under a tax statute administered and enforced by the government of Ontario, or have any outstanding amounts owing and past due of tax, penalty or interest under those laws and have not made payment arrangements
- If you have a business number with the Canada Revenue Agency and have not filed a tax return under certain Federal or provincial legislation
- If the application will be made by a corporation and more than 25 percent of the corporation is owned or controlled, either directly or indirectly, by a licensed producer or their affiliate.
All applicants and interested parties are subject to background checks as part of the eligibility review process.
For more information about CROL fees, see the Fees and Payment section of this Guide.
Once approved, you will receive a CROL which will contain your licence number, expiry date and any conditions on the licence.
Cannabis Retail Store Authorization
To operate a cannabis retail store, you must have a CRSA.
The submission of a CRSA application does not guarantee its approval. The determination that a CRSA application satisfies requirements is made based on all information available at the time of issuance of the CRSA.
The Cannabis Licence Act, 2018 and its regulation require that each store meet certain requirements. Requirements relate to such matters as the store layout and location.
Residents of the municipality in which the proposed store would be located have an opportunity to provide their input through the public notice period.
Before applying for a CRSA, you must have submitted an application for a CROL or hold a CROL issued by the AGCO.
A proposed retail store:
- Must be located in a municipality that permits cannabis retail stores.
- Cannot be located near a school or private school, as defined in the Education Act, if the proposed retail store is less than 150 metres away from the school. This will be determined as follows:
- when the school or private school is the primary or only occupant of a building, 150 metres shall be measured from the property line of the property on which the school or private school is located.
- when the school or private school is not the primary or only occupant of a building, 150 metres shall be measured from the boundary of any space occupied by the school or private school within the building.
The distance between a proposed retail store and a school or private school is measured by a straight line from the closest point of the school property or boundary as described above to the closest point of the proposed retail store.
If either the store and/or the school is located on a floor other than the ground floor or main level in its respective building, the measure of the 150 metre distance may take into account the vertical distance in assessing compliance with this requirement.
The above rules do not apply if the private school is located on a reserve or if the private school only offers classes through the Internet.
All retail store locations will be required to undergo a 15-day public notice process. For more information, see the Public Notice for a Cannabis Retail Store Authorization section of this guide. The public notice process is not required for stores on First Nations reserves. The approval of the location of the store is provided by the band council by way of a resolution.
For more information, see the Retail Store Location section of this guide.
Please refer to the Cannabis Licence Act, 2018 and its regulation for a list of full requirements.
Eligibility
For full details on the eligibility requirements for a CRSA, please refer to the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.
Some of the requirements for an applicant to be eligible for a CRSA include:
• the applicant must not have made a false statement or provided false information in the application.
• the premises, equipment and facilities of the proposed store are not in compliance with the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores
• the issuance of the authorization has been deemed to be in the public interest (i.e. protecting public health and safety, protecting youth and restricting their access to cannabis, and preventing illicit activities in relation to cannabis).
An LP and its affiliates are eligible to apply for a single CRSA. The proposed cannabis retail store must be located on or within the site set out in the federally issued production licence.
For more information, see the Retail Store Authorization section of this guide.
For more information about CRSA fees, see the Licence and Authorization Fees section of this Guide.
Prior to starting a CRSA application, we recommend that you:
- Contact the municipality where the store will be located and confirm that the proposed retail store meets local municipal requirements for retail store siting
- Ensure you have applied for or hold a CROL and have the application file number or licence number ready (both applications may be submitted at the same time)
- Review the Registrar’s Standards for Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulations to ensure you understand the requirements for your store
- Ensure that the operating name of the proposed retail store complies with all applicable federal/provincial legislation related to advertising and promotion.
Cannabis Retail Manager Licence
A CRML licence is required by any individual of each retail store location and/or anyone who wish to perform one or more of the following functions in a cannabis retail store:
- Supervising or managing employees of a cannabis retail store;
- Overseeing or coordinating the sale of cannabis;
- Managing compliance issues in relation to the sale of cannabis;
- Having signing authority to purchase cannabis, enter into contracts or make offers of employment.
For more information, visit the Cannabis Retail Manager Licence section of this Guide.
For full details on the eligibility requirements for a CRML please refer to the Cannabis Licence Act, 2018 and its regulation.
Some of the eligibility requirements that an applicant must meet include:
- Be at least 19 years of age
- Conduct their business (or their duties as retail store manager) in accordance with the law, and with honesty, integrity and in the public interest
- Have no convictions or charges under the Cannabis Licence Act, 2018, or certain sections of the Cannabis Control Act, 2017 and the Cannabis Act (Canada)
- Not have, or previously had, roles or connections with a criminal organization as defined in subsection 467.1(1) of the Criminal Code (Canada) (i.e. the applicant must not be, or have been, a member of the criminal organization; involved in the criminal organization; or contribute, or have contributed to, the activities of the organization)
- Not have made a false statement or provided false information in your application.
All applicants are subject to background checks as part of the eligibility review process.
For more information about CRML fees, see the Fees and Payment section of this Guide.
To submit your online application, the following information will be required:
- Social Insurance Number
- Personal History for all employment and/or unemployment (including education, parental leave, etc.). You must use the form provided in the online application.
Holders of CROL must keep an up-to-date record of each location for which their CRMLs are accountable. The record must be made readily available for review upon the request of AGCO Inspectors.
Educational requirements
Under Ontario law, all cannabis retail employees, managers and store authorization holders are required to successfully complete an AGCO Board-approved cannabis retail employee training program prior to their first day of work in the store.
Individuals required to complete the training include:
• Holders of CRSAs;
• Holders of CRMLs(Store Managers);
• Any other individuals who work in a cannabis retail store, including those completing deliveries
• Individuals providing security services
It is the responsibility of the CRSA holder to ensure that all employees have met this educational requirement.
The AGCO Board has approved two cannabis retail employee training programs:
- CannSell ($69.99+HST)
- CTC 1: Cannabis Retail Certification Program ($64.99+HST)
All AGCO Board approved programs train cannabis retail employees on the safe and responsible retail sale of cannabis. The training programs take approximately four hours to complete and are delivered online in both English and French. Learners must score at least 80% on the final exam in order to successfully complete the program.
Application Process
How to Apply for a Cannabis-related Licence or Authorization
Cannabis-related applications will be accepted online only via iAGCO.
iAGCO is the AGCO’s online service delivery portal that offers its customers a convenient and digital way of doing business with the Commission. To access services from the iAGCO portal, you must first create an account and login.
Once an account has been created and you are logged in, the portal can be used to apply for, and manage and view the status of your cannabis-related licences and authorizations, including applications, renewals and modifications.
For more information on iAGCO, please visit the iAGCO Information page.
Applying for a Cannabis Retail Operator Licence
In addition to submitting an online application via the iAGCO portal, you will need to provide supporting information/documentation.
If you are applying for a CROL, prior to the Licence being issued (i.e. your licence cannot be issued without the required documentation):
- Tax Compliance Verification (TCV) Confirmation Code
Applicants must provide their Tax Compliance Verification (TCV) confirmation code. For more information, please refer to the Tax Compliance Verification (TCV) Program. - Constituting Document(s)
One or more of the following documents must be uploaded:- Certificate or articles of incorporation
- Charter/By-Laws
- Partnership Agreement
- Limited Partnership Agreement
- Limited Partnership Declaration
- Shareholder's Agreement
- Trust Agreement
- Any other constituting documentation relevant to the entity
- Schematic Diagram
If the corporate structure of the applicant has more than one level, a schematic diagram depicting the relationship among all parent, controlling, subsidiary, affiliated and commonly controlled companies is required. In the case of a corporation, ownership identified must total 100%. - Details of Shares
A document listing all classes and series of shares in the entity. For each class/series, include its name, number of authorized shares, number of issued shares, any rights, privileges, restrictions, conditions as well as name of each shareholder who meet percentage threshold requirements set out for cannabis applicants. - Financial Statements
Financial Statements (balance sheets, income statements, cash flow statements, etc.) for the last fiscal year. If available, please provide audited consolidated financial statements. - Tax Return and Tax Assessment
A completed tax return and tax assessment for the last fiscal year available. Personal History
A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) will be required from:- Applicants who are Sole Proprietors
- Disclosed individuals.
Please note, the Registrar will consider every application for a retail operator licence, and may;
- issue the retail operator licence, if the applicant has met the application requirements, is not ineligible and has paid the required fee
- issue the licence, with proposed conditions to be attached
- issue a proposal to refuse the application
If you receive a proposal to refuse your application, you may request a hearing/appeal before the Licence Appeal Tribunal. For more information on the LAT, please visit the LAT website.
Applying for a Cannabis Retail Store Authorization
To apply CRSA, the applicant must either hold a valid CROL issued by the AGCO or have submitted an application for a CROL with the AGCO. Applications for both can be submitted at the same time.
A cannabis retail store must be the only business that operates out of the proposed location, and the business cannot also operate as a restaurant, coffee shop, pharmacy, convenience store, etc. For more information, see Retail Store Requirements.
Licensed Producers
A LP and its affiliates are eligible to apply for a single CRSA. The proposed cannabis retail store must be located on or within the site set out in the federally- issued production licence.
Business Requirements
For a CRSA to be issued, certain business requirements must be in place prior to opening to ensure the store is ready to order, receive and appropriately secure cannabis products. For example, store operators are required to ensure:
- Cannabis and accessories will not be visible from the exterior of the premises
- A secure, high-resolution surveillance system will be in place at all times
- Cannabis will be stored securely at all times and be accessible only by staff
For more information on the standards and requirements for a cannabis retail store, please refer to the Registrar’s Standards for the Cannabis Retail Stores, the Cannabis Licence Act, 2018 and its regulation.
Required Documents
The following documents must be submitted prior to a CRSA being issued:
- Business Name Registration
The business name under which you intend to operate may have to be registered under the Business Names Act. For information regarding business name registration please call toll free 1-800-361-3223 or visit Service Ontario. - Proof of Ownership / Tenancy
Proof of Ownership / Tenancy (lease agreement, property deed, rental agreement etc.). - Agreements not disclosed on the CROL application. See Supplementary Questionnaire for more information.
Additional information / documentation may be requested as required to determine eligibility for a CRSA.
Pre-Authorization Inspection
Before a CRSA can be issued, the store location will be inspected by an AGCO Inspectors to confirm/verify that all eligibility and store-specific criteria are met. During the pre-authorization inspection, AGCO Inspectors will provide you with information about your responsibilities under the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores, and address any operational questions and/or concerns you may have related to the retail sale of cannabis.
For more information, see the Retail Store Pre-Authorization/Opening Inspection of this Guide.
Conditions
CRSAs may be subject to conditions specified by the Registrar pursuant to the Cannabis Licence Act, 2018.
Please note that the Registrar will consider each application for a CRSA and may:
- issue the CRSA if the applicant has met the application requirements, is not ineligible and has paid the required fee
- refuse the application.
The Registrar’s decision to issue or not issue a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.
Applying for a Cannabis Retail Manager Licence
The following document(s) will be required before a CRML can be issued:
- Personal History
A Personal History (using the form provided on iAGCO) for all employment and/or unemployment (including education, parental leave, etc.) - Tax Return or Tax Assessment
A completed tax return and tax assessment for the last fiscal year available.
Please note that the Registrar will consider every application for a retail store manager, and may:
- issue the CRML, if the applicant has met the application requirements, is not ineligible and has paid the required fee or
- issue the licence, with proposed conditions to be attached
- issue a proposal to refuse the application
If you receive a proposal to refuse your application, you may request a hearing/appeal before the LAT. For more information on the LAT, please visit the LAT website.
Public Notice for a Cannabis Retail Store Authorization
A Cannabis Retail Store Authorization may be issued to an applicant unless the Registrar finds it is not in the public interest, as set out in the regulation made under the Cannabis Licence Act, 2018.
The infographic below shows the basic steps for the public notice process.
Public Notice
After an application for a CRSA is submitted through iAGCO, the AGCO’s online portal, the AGCO will determine the dates of the posting period (for a total of 15 calendar days) and will email the public notice placard (in PDF format) to the applicant.
Once received, an applicant must print and physically display the public notice placard on the proposed storefront. The public notice placard, an example of which is shown below, displays the following information:
- Name and address of the proposed store;
- File number of the application;
- Deadline date for submissions; and
- Details on who can make a submission and how to make a submission.
Public Notice posting requirements
Applicants are required to post the public notice placard according to the following requirements:
- Print in colour on letter-sized (8½” x 11”) paper;
- Post both English and French placards in a place where members of the public can easily read the contents without having to enter the proposed store; and
- Post for 15 calendar days (start and end dates will be provided to the applicant by the AGCO).
An AGCO Inspector may visit the proposed store to confirm the public notice placard is posted according to the requirements. Failure to post the public notice placard for the required period of time will result in a delay in the processing of the application and may result in reposting the public notice placard for a further 15 days.
All CRSA applications that are undergoing the public notice process will be searchable on the AGCO’s website through the iAGCO portal.
Subscribe to Applications Undergoing Public Notice
You can sign up to receive emails with updates of new applications undergoing public notice. You can choose the types of applications and specify the locations you would like to subscribe to.
Written submissions
Written submissions about an application can only be made to the Registrar by:
- A resident of the municipality in which the proposed store is located;
- The municipality representing the area in which the proposed store is located. If the municipality is a lower-tier municipality, then the upper-tier municipality of which it forms a part may also make a submission.
Written submissions can be made online at iAGCO.
Submissions must be received by the AGCO on or before the deadline date set out in the public notice. The AGCO will provide copies of any submissions and accompanying documents to the applicant. Anonymous submissions will not be considered.
Written submissions and the public interest
The Registrar will consider written submissions as to why the proposed store is not in the public interest as set out in the regulation made under the Cannabis Licence Act, 2018. The following are matters of public interest that can be considered by the Registrar:
- Protecting public health and safety;
- Protecting youth and restricting their access to cannabis; and
- Preventing illicit activities in relation to cannabis.
Copies to the applicant
After the public notice period has ended, the AGCO will provide the applicant with copies of any submissions received within the required time period in response to the application for a CRSA. Personal details of the submitter, such as name, phone number, email address and mailing address, may be provided to the applicant if included in the content of the submission and/or in accompanying documents. The AGCO aims to provide copies of the submissions to applicants within 10 business days after the submission deadline.
Applicants will have five days, from the time written submissions are sent to the applicant, to provide written submissions to the Registrar in response to any submissions from local residents and from the municipality. The Registrar will consider the applicant’s response, if any.
Registrar’s decision
The Registrar’s decision to issue or to refuse a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.
Fees and Payment
Licence and authorization fees
There are fees required when you apply for your CROL, CRML, or CRSA and fees when you renew these licences or authorization.
Fee payments must be received by the AGCO before a licence or authorization application can be processed. If an application is withdrawn, or if the AGCO refuses to issue the licence or authorization for any reason, the fee is non-refundable.
The fees are:
Fee 2-year term | Renewal Fee 2-year term | Renewal Fee 4-year term | |
---|---|---|---|
Retail Operator Licence | $6,000 | $2,000 | $4,000 |
Retail Store Authorization | $4,000 | $3,500 | $7,000 |
Cannabis Retail Manager Licence* | $750 | $500 | $1,000 |
*If you are a sole proprietor, you may not need to get a Cannabis Retail Manager Licence for that store.
Retail Store Pre-Authorization Inspection
Prior to a CRSA being issued and a cannabis retail store opening for business, the store location will be inspected by an AGCO Inspector to confirm that eligibility and store-specific requirements are met. The first inspection is called a Retail Store Pre-Authorization Inspection, which is conducted prior to a CRSA being issued. The Inspector will be contacting the owner/retail cannabis sales manager to review, in advance, the requirements to ensure the location is ready for this inspection. The following sections provide more information about the inspection process.
What is a Retail Store Pre-Authorization Inspection?
Before a CRSA will be issued, the store location will be inspected by an AGCO Inspector to confirm that eligibility and store-specific requirements are met. During the Pre-Authorization Inspection, AGCO Inspectors will provide you with information about your obligations and responsibilities under the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores and answer any operational questions and/or concerns you may have related to the retail sale of cannabis. Inspectors will be checking that the store is ready to order, receive and appropriately secure cannabis products as required by the Cannabis Licence Act, 2018, its regulation and the Registrar’s Standards for Cannabis Retail Stores.
Things to know before scheduling a Pre-Authorization Inspection
- Ensure that you have applied for or hold a CROL and have the application file number or licence number ready.
- Ensure the complete application, including supporting documents for a CRSA is submitted.
- Confirm that all required fees have been paid. Please refer to the AGCO’s Application Fee Schedule for the applicable fee.
- Review information about your obligations and responsibilities under the Registrar’s Standards for Cannabis Retail Stores, as well as all applicable laws and regulations, including but not limited to, the federal Cannabis Act and its regulations, the Cannabis Control Act, 2017, the Cannabis Licence Act, 2018, and Ontario Regulation 468/18.
- Pre-Authorization Inspection criteria, listed below, must be completed before an inspection can be scheduled.
Pre-Authorization Inspection Criteria
An AGCO Inspector will be visiting the retail store to confirm that store specific requirements are met. Store-specific requirements include:
- Public Notice Process (CLA subsection 4 (7))
You must post the placard that has been issued via iAGCO email under the public notice process for 15 calendar days. The public notice period does not need to be completed before an inspection can be scheduled (i.e. an inspection can be scheduled as soon as the placard has been posted based your readiness for the store to be inspected). - Location (AGCO application requirement)
The address written on the CRSA application must match the physical address of the store. - Product Visibility (AGCO Registrar Standard 2.5)
Once cannabis products and accessories are on site, they cannot be seen from the outside of the store (i.e. some retail store operators may choose to use tinted glass or frosted windows to ensure products and accessories are not visible from outside of the store). During the pre-authorization inspection, you will be required to demonstrate how you meet this requirement. - Video Surveillance System (AGCO Registrar Standard 2.1)
A secure, high-resolution surveillance system must be in working order at all times. During the pre-authorization inspection, you will be required to demonstrate that you have a video surveillance system in place that includes the following minimum requirements:- Cameras and lighting must be positioned to clearly capture 24-hour coverage of the interior of the premises and immediately outside the premises, including the:
- Entrances and exits, including where IDs are checked
- Pick up area(s) for cannabis purchased online or by telephone
- Point of sale area(s)
- Receiving area(s)
- Sales floor area(s)
- Cannabis storage area(s).
- Video recordings must be made and retained for a minimum of 30 days and be made available to the AGCO upon request;
- The licensee must ensure that the surveillance system is functioning properly at all times.
- Cameras and lighting must be positioned to clearly capture 24-hour coverage of the interior of the premises and immediately outside the premises, including the:
- Storage (AGCO Registrar Standard 2.2)
Operators must be able to demonstrate and confirm that all cannabis products will be stored securely at all times and only be available to staff from the time the product arrives at the store to point of sale, destruction, or return to Ontario Cannabis Retail Corporation (OCRC) or Licensed Producer. Other Businesses (Ontario Regulation 468/18, section 9)
The store must be enclosed by walls and separated from any other commercial establishment or activity and from any outdoor area. The store cannot be entered from or passed through in order to access any other commercial establishment, other than a common area of an enclosed shopping mall (note: this does not apply to spaces shared with other commercial establishments that are only accessible to employees of either business or other non-customers permitted by either business, as long as the entryway to the cannabis store is secured to prevent unauthorized access).
- Store Management (CLA 5(1), CLA 25 (1), AGCO Registrar Standard 1.2 and 1.3)
Each store must have a CROL holder or a CRML holder managing the store. CROL holders or CRML holders may be responsible for up to five (5) stores at a time. You may be asked to provide your licence upon request. - Preventing Unauthorized Access (AGCO Registrar Standard 2.4)
All entry points to the store, including doors and windows, must be secure and protected against unauthorized access. - Preventing Entry of Minors (Ontario Regulation 468/18 s. 20)
A description of the measures the CROL holder will undertake to ensure that patrons who look under 25 years of age are not permitted to enter the cannabis retail store unless they provide a valid piece of identification proving that they are at least 19 years of age. - Record Keeping Requirements (AGCO Registrar Standard 8.1)
Licensees must ensure that the following records are maintained, retained a minimum of three (3) years, or longer as may be required by other laws and regulations, and made available to the AGCO in accordance with the Notification Requirements or upon request:
- employee records, including names, addresses, primary job responsibilities, shift schedules, training records, CPIC records check results, and dates of employment
- records for all cannabis in the authorized store, including cannabis purchased directly from the OCRC and cannabis transferred from another authorized retail store operated by the Licensed Operator. At a minimum, these records must contain information regarding:
a. [Removed: May 2023]
b. [Removed: May 2023]
c. each sale transaction at the authorized store, online or by telephone, traceable to the employee level
d. any cannabis that has been destroyed. Records of any cannabis destroyed must include, at a minimum:- [Removed: May 2023]
- [Removed: May 2023]
- [Removed: May 2023]
- a certificate of destruction, if destruction is carried out by a third party
- [Removed: May 2023]
- [Removed: May 2023]
- the reason for the destruction of the cannabis product
- the method of destruction.
- [Removed: May 2023]
- records that may be required to support a cannabis product recall
- records demonstrating that the Licensee is complying with sections 7 and 8 of the Cannabis Control Act, 2017, which prohibit sales to persons under 19 years of age and persons who are or appear to be intoxicated.
- [Removed: May 2023]
- [Removed: May 2023]
- Records of the name and address of purchaser and residential address where any cannabis is delivered. [Amended: March 2022]
- Records of the specific authorized store(s) a licensed Retail Manager is accountable for. [New: March 2021]
When entering into any agreement or accepting any item, benefit or service pursuant to Standard 6.5, a licensee shall maintain the following records [New: June 2022]:
- Copy of the complete agreement
- Description of the item, benefit or service
- Date of receipt of item, benefit or service
- Name of licensed producer and representative and
- Fair market value of the item, benefit or service
How to schedule a Pre-Authorization Inspection
Once the complete CRSA application has been submitted, notify the AGCO that the retail store has met all of the store specific requirements and is ready for an inspection. The AGCO Inspector will contact you to set up an appointment. As the applicant, you must be present at the retail store during the inspection.
Once all eligibility and store specific requirements are met, a CRSA will be issued which may include certain terms and conditions, which the licensed Retail Operator must comply with before the store is open to the public.
Retail Store Ongoing Inspection
AGCO Inspectors may visit the retail store location at any time to confirm compliance with the Cannabis Licence Act, 2018 and regulation and Registrar’s Standards for Cannabis Retail Stores. You must allow the inspection, and you must not interfere with the AGCO Inspector, refuse to answer questions related to the inspection, or provide false information.
When conducting an inspection, an AGCO Inspector may:
- ask you for and look at records that are relevant to the inspection
- take records away from the store to review, examine, test or copy. In this case, the Inspector will give you a receipt confirming which records have been taken.
- After the Inspector has taken the records, you can request that the records be made available to you
- The records will be returned to you in a reasonable time, unless the records cannot be returned because of the testing done.
- take photographs or other recordings
- ask about financial transactions, records or other matters relevant to the inspection.
If an Inspector asks you for a record, you must provide it. You must also help the Inspector understand the record or provide it in a readable form.
AGCO Inspectors will also confirm the following:
- Outdoor Store Signage (CA s. 18, Registrar's Standard 6.1 and Standard 6.2)
Signage must identify the business on the outside of the authorized store. Advertising may not:- appeal to or target persons under 19 years of age
- promote cannabis or cannabis accessories in a way that is false, misleading, or deceptive
- suggest or imply, directly, indirectly, or by use of endorsements of testimonials, that consumption of cannabis is associated with success, enjoyment of an activity, fulfillment of a goal, or the resolution of a problem
- be associated with medicine, health, or pharmaceuticals
- depict or suggest the illegal sale of cannabis
- associate consumption of cannabis with driving a motorized vehicle, or with any activity that requires care and skill or has elements of danger
- Provincial Cannabis Retail Seal (Ontario Regulation 468/18, section 19)
You must display the provincial cannabis retail seal in a place that is visible from the exterior of the public entrance to the cannabis retail store. The retail seal must be least 17 centimetres in width at its widest point by 20 centimetres in height. Either the French version, the English version or both versions of the cannabis retail seal may be displayed. You will be provided access to download the seal once your CRSA application is approved. - Interior Store Signage (CA s. 17)
You may promote cannabis and cannabis accessories at the point of sale only if:- The promotion is limited to factual information about:
- Cannabis or a cannabis accessory and its characteristics
- A service related to cannabis
- The availability or price of cannabis, cannabis accessories, or a service related to cannabis.
- The promotion focuses on brand characteristics of cannabis or cannabis accessories
- The promotion is limited to factual information about:
- Storage (AGCO Registrar Standard 2.2)
All products must be stored securely at all times and only be available to staff from the time the product arrives at the store to point of sale, destruction, or return to OCRC or Licensed Producer. - Authorized Products (CLA s. 18, Ontario Regulation 468/18 s. 18)
You may only sell cannabis products purchased from the OCRC in the packaging which it was purchased from the OCRC. Cannabis accessories and shopping bags do not need to be purchased from the OCRC. - Staff (CLA s. 23, CLA s. 5(4), Ontario Regulation 468/18 s. 21)
All staff employed to work before the cannabis retail store is open as well as after the store is open to the public, must be 19 years of age or older. Licensees must obtain criminal background checks from employees as part of the hiring process, as well as ensure that all employees:- act in accordance with the law and demonstrate honesty and integrity
- have completed any required training, including AGCO Board-approved training, prior to their first scheduled shift.
- AGCO Authorization (Ontario Regulation 468/18, s. 13)
You must display the AGCO Cannabis Retail Store Authorization in a visible place to patrons in the retail store. - Sensory Display Containers (Standard 2.6)
You may use sensory display containers to allow patrons to see and smell cannabis products. Display containers must be locked and tamper-proof to prevent patrons from touching the products, and must not be able to be removed from the premises.
This requirement can be met during the pre-opening inspection or during the on-going inspection phase once you decide to use sensory display containers. - Responsible Use (AGCO Registrar Standard 7.1)
Information related to the responsible use of cannabis must be made available to patrons. At a minimum, you must make the Health Canada Consumer Information – Cannabis document available to patrons. - Retail Store Staff Education (Ontario Regulation 468/18, s.21)
Retail store staff including holders of CRSA, cannabis retail manager licensees and staff employed at the retail store (including those completing deliveries and individuals providing security services) must complete an AGCO Board-approved training program prior to their first day of work to support the safe sale, and consumption of cannabis.
• Point-of-Sale System (Standard 8.6)
Retailers must have a POS system that is configured and integrated with the automated POS Data Reporting Platform.
Cannabis Retail Seal
As described in Ontario Regulation 468/18, operators of cannabis retail stores authorized by the AGCO must print and display the provincial cannabis retail seal in a place that is visible from the exterior of the public entrance to the cannabis retail store. The retail seal must be at least 17 centimetres in width at its widest point by 20 centimetres in height. Either the French version, the English version or both versions of the cannabis retail seal may be displayed.
Once the AGCO has approved and issued a CRSA, it will give the applicant access to downloadable versions of the seal in various file formats. The image cannot be altered in any way.
Hearings - Cannabis
Hearings under the Cannabis Licence Act, 2018
Overview
Hearings for cannabis CRML, CROL and CRSA matters under the Cannabis Licence Act, 2018 are heard by the Licence Appeal Tribunal, which is an independent, quasi-judicial agency of the Government of Ontario that adjudicates applications and resolves disputes concerning compensation claims and licensing activities regulated by the provincial government.
If you have received a Notice of Proposal (NOP) issued by the Registrar, you have the right to a hearing/appeal before LAT. For more information about requesting a hearing/appeal as well as any fees LAT may require, please visit the LAT website.
Notice of Proposal
If the Registrar proposes to refuse, revoke or suspend a CROL, CRML, or to revoke or suspend a CRSA, the Registrar will serve a NOP on the applicant/licensee/authorization holder outlining the reasons for the proposed action.
Applicants/licensees who wish to dispute an NOP issued by the Registrar may appeal it. If you receive an NOP and wish to request a hearing, you have fifteen (15) days to appeal to LAT. If an appeal is not received within fifteen (15) days, the Registrar may carry out the proposed action and a final Order will be issued.
The Registrar’s decision to issue or refuse a CRSA is final. Relief may be sought by way of an Application for Judicial Review to the Superior Court of Justice.
In a situation where there are serious violations alleged such that it is in the public interest not to allow a licensee to continue to sell cannabis, the Registrar may immediately suspend a CROL, CRSA or a CRML.
In certain instances, including where the holder of a CROL, a CRSA or a CRML is convicted of selling cannabis to a minor, the Registrar is required by the Cannabis Licence Act, 2018 to immediately revoke the licence or authorization.
LAT Decisions
Decisions of hearings held before LAT, can be found on the LAT website.
Guides
Retail Reporting
Guidelines and Specifications
This chapter provides detailed information to assist operators of authorized cannabis retail stores in meeting their Automated Retail Data Submission and Incident-Based Retail reporting obligations to the Registrar. Licensees must read and understand the contents of this chapter prior to operating a cannabis retail store.
Automated Retail Data Submission is completed through the Point-of-Sale (POS) Data Reporting Platform that works with your POS software, if it has been successfully onboarded to the data platform. Incident-Based Retail Reports are submitted via the iAGCO online portal and supplementary information is required as based on the Notification Matrix.
If you are looking for assistance with your reporting, please complete the Cannabis E-learning module (Licence Key: 8444-6196-1617-3306).
Submitting Your Reports
Timing of Submission
All licensees are required to accurately complete and submit reports to AGCO as necessary, following the applicable timing of submission as set out in the “Regulatory Reporting Requirements – Cannabis” (Notification Matrix).
Failure to Submit on Time
Failing to submit accurate and complete reports within the required timeframe is a breach of the Registrar’s Standards and may result in regulatory action.
Method of Submission
All licensees must upload and submit their completed reports to the AGCO online though the iAGCO portal. For more information about iAGCO portal, please visit the iAGCO Information page.
Navigate to the corresponding sections of this Guide for further information on monthly retail and incident-based retail reporting requirements.
Ontario Cannabis Data Reporting Requirements: Point-of-Sale Data Reporting Platform
The AGCO and the Ontario Cannabis Store (OCS) have introduced a data platform to help reduce your regulatory burden by both simplifying your cannabis reporting requirements and improving its accuracy. All authorized retailers in Ontario are required to use an in-store POS system that is fully integrated with the POS Data Reporting Platform.
How It Works
The POS Data Reporting Platform automatically extracts, standardizes, and validates the data that you already house in your system. This is done via an Application Programming Interface (API) connection between your POS system and the POS Data Platform. The OCS processes the extracted data and shares it with the AGCO and notifies you of any errors.
It eliminates the need for monthly preparation and submission of reports and improves the accuracy of the data submitted to better fulfil your provincial and federally-mandated regulatory reporting requirements.
If they have been onboarded with OCS, your POS provider will set up your system to automatically pull your required provincial and federal regulatory reporting data directly from your in-store POS system. Once it is processed by the OCS, the data required for provincial and regulatory reporting will be available for federal regulatory reporting. The OCS populates and completes reports required by Statistics Canada and Health Canada.
Integration of your POS system with the POS Data Platform enables you to meet your provincial and federal regulatory reporting requirements.
A list of POS providers that are fully integrated with the POS Data Reporting Platform can be found here, For more information about the POS Data Reporting Platform email OntarioCannabisDataReporting@ocs.ca
Ongoing Data Quality
Once added to the platform, you may receive data reconciliation error notifications. A list of data reconciliation error messages is available from the OCS here.
It is important that you promptly address any error messages you receive to maintain data accuracy and compliance. If you have any questions about specific error messages, contact your POS Provider.
The AGCO validates incoming data to ensure retailers’ compliance with their regulatory obligations. If our validation efforts identify any issues, we may directly reach out to you for resolution.
Closing an authorized store
If you are a CROL holder permanently closing an authorized store, you must notify the AGCO of your intent to close. Additionally, you must ensure that your store’s closing inventory levels are reported as zero in the data provided to the AGCO before the store can be officially closed. For detailed regulatory and operational steps required prior to closing, please refer to the "Request to Cancel a Licence and/or Authorization" section of this guide.
Please refer to the Cannabis Seed-to-Sale Data Entry Guidelines for instructions on entering data into a POS system section of AGCO Cannabis Seed-to-Sale Data Entry Guidelines: e-Learning Module as noted in the Helpful Resources section of this guide.
Incident-Based Retail Reporting
Overview
As part of the AGCO’s overall process to ensure compliance with the Registrar’s Standards, laws and regulations, all licensees are required to comply with the minimum notification obligations to the Registrar as outlined in the AGCO’s “Regulatory Reporting Requirements – Cannabis” (Notification Matrix). They include (but are not limited to) reporting incidences of lost or stolen product, changes to store layout, and failure of surveillance systems. Standard 1.6 requires operators to comply with these notification requirements, including meeting the required timeframes for submission.
Standard 8.1 requirement 10 took effect June 30th, 2022, and requires operators of authorized cannabis retail stores to track agreements and acceptance of items, benefits or service (in accordance with Standard 6.5) using the AGCO Cannabis Regulatory Reporting Template for Registrar’s Standard 8.1.10. These records must be made available to the AGCO upon request (as with any other records under Standard 8.1).
Cannabis Seed to Sale Guidelines: FAQs
Q: What is AGCO’s approved method of destruction?
A: There is no approved method, but your method of choice must comply with Registrar's Standard 3.0.
Q: If I want to use my inventory as a display, can I do that through an inventory adjustment?
A: No, all displays must be purchased at a cost greater than $0.00.
Q: Can I use an item that I have set aside for destruction as display?
A: No, all displays must be purchased as a sale at a price greater than $0.00.
Q: Can I take products out of the inventory at $0.00 for my personal use?
A: No, all cannabis products must be purchased as a sale, at a price greater than $0.00. Cannabis Products provided to any personnel free of charge is in violation of Standard 6.3: “Licensees may not provide cannabis or cannabis accessories free of charge or provide any other thing or benefit, as an inducement for the purchase of cannabis or a cannabis accessory.”
Q: If we receive a return from a customer but the product is lost before being put back into inventory, what is the correct way to enter the data?
A: Follow these three steps:
- Process the return following the instructions in the Return from Customer section in the Cannabis Seed-to-Sale Data Entry Guidelines.
- Remove the product from inventory as Lost/Theft following the instructions in the Lost/Theft section in the Cannabis Seed-to-Sale Data Entry Guidelines course.
- Notify the AGCO of the incident within 1 business day.
Helpful Resources
For more information about the POS Data Reporting Platform, email OntarioCannabisDataReporting@ocs.ca
For more information about your Ontario Cannabis Data Reporting requirements, email cannabisreporting@agco.ca
- AGCO Cannabis Seed-to-Sale Data Entry Guidelines: e-Learning Module (Licence Key: 8444-6196-1617-3306) - This new AGCO data entry e-Learning module will help retailers understand how to enter retail data into their POS system and maintain accurate, consistent records for a variety of data entry types.
- Ontario Cannabis Store Wholesale Learn – This website provides Authorized Retailers in Ontario with information on how to work with the OCS.
The AGCO and OCS are committed to ensuring the safe, responsible sale of cannabis in Ontario and will continue to adjust processes to reflect sustainable, scalable solutions.