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AGCO Adds New Monetary Penalty Infraction For Ontario Cannabis Retailers

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On December 5, 2025, the Alcohol and Gaming Commission of Ontario (AGCO) updated the Schedule of Monetary Penalties under the Cannabis Licence Act, 2018 and Ontario Regulation 468/18. These updates—which apply to cannabis retail licence and Retail Store Authorization (RSA) holders—introduce two new infractions with corresponding maximum penalties.

The additions reflect regulatory changes to section 17.1(2) and (3) of Ontario Regulation 468/18, which came into force on January 1, 2025. These amendments now permit:

  1. An RSA holder who has requested cancellation of their authorization to sell cannabis to another RSA holder, and
  2. Another RSA holder to legally purchase that cannabis, provided the transaction complies with subsection 17.1(1).

To align the penalty framework with these new permissions, the Schedule now includes:

Regulation ProvisionDescriptionMaximum Monetary Penalty
17.1(2)Sale or charging for cannabis by an RSA holder (who has requested cancellation) to another RSA holderUp to $15,000
17.1(3)Purchase of cannabis by an RSA holder from another RSA holderUp to $100,000

Monetary penalties—used by the AGCO since 2009—serve as an intermediate compliance tool between warnings and licence suspension or revocation. The maximum amounts listed represent the top end of the penalty range; actual penalties may be lower depending on the circumstances and risk associated with the infraction. The AGCO emphasizes that monetary penalties help maintain a compliance-based regulatory system focused on integrity, lawful conduct, and sector stability.

Link to AGCO announcement: https://www.agco.ca/en/news/changes-schedule-monetary-penalties-relating-cannabis-licence-act-2018-and-ontario-regulation?nocache=TIMESTAMP

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