Scrapped monopoly welcomed by CFIB
Private retailers will have the opportunity to enter the recreational cannabis retail market in Ontario.
Previous fears that the large market would be a province-run monopoly have ended following an announcement late Monday that it will enable regulated private retail of cannabis.
Once the federal legalization takes place on October 17, Ontario will operate an online retail channel with the private retail market taking effect by April 1, 2019.
"The Government of Ontario will not be in the business of running physical cannabis stores," said Minister of Finance Vic Fedeli. "Instead, we will work with private sector businesses to build a safe, reliable retail system that will divert sales away from the illegal market."
The online channel, operated by the Ontario Cannabis Store, will include age verification to ensure that only those aged 19+ will be able to purchase online.
The province will put a strict set of rules in place and regulated private retailers will display an Official Ontario Cannabis Retailer Seal.
"We will be ready to put in place a safe, legal system for cannabis retail that will protect consumers," said Attorney General Caroline Mulroney. "We will also be ready to undermine the illegal market and protect Ontario's roads. Most importantly of all, we will be ready to protect our kids."
CFIB responds
The Canadian Federation of Independent Business has welcomed the Ontario government’s decision.
“We are pleased the government is abandoning the previously-planned cannabis monopoly in favour of including the private sector at the retail level. It is unfortunate that bricks and mortar could not be in place for October 17; however, in the long run, an above-ground, regulated private sector is better suited to meet customer demand and guard against an underground industry,” said Ryan Mallough, Senior Policy Analyst, ON.
He added that the CFIB urges the government to consider setting aside licences for small, independent businesses, so they are allowed a fair chance at participating in the cannabis retail sector.
