Toronto signals it will stop cracking down on illegal pot shops

Toronto will stop cracking down on illegal pot shops because it doesn't have the money to enforce the rules and the work is dangerous for its bylaw officers, a senior city official says.

Speaking at a council budget committee on Wednesday, Carleton Grant, the city's executive director of municipal licensing and standards, said the city no longer has the provincial funding to do the job. He said it should be the responsibility of the police to enforce the rules against cannabis stores that operate without a licence.

"We've made efforts over the last five to six years to close them down, to put up concrete blocks that are only to be removed within 24 hours," he said.

"We have boarded up buildings. We have been countersued for locking a tenant into a business. We have used every tool available to us." 

In an updated statement on Friday, Grant said the province is responsible for licensing and regulating private cannabis retail stores through the Alcohol and Gaming Commission of Ontario (AGCO).

But according to city documents, the city has been responsible for enforcement of illegal pot shops in Toronto. That means it has the power to conduct investigations, issue closure orders, bar entry into premises, conduct seizures and lay charges under Ontario's Cannabis Control Act, which came into effect in October 2018.

That same year, the city received $8.97 million from the province through the Ontario Cannabis Legalization Implementation Fund to help municipalities with local costs associated with recreational cannabis legalization, including enforcement.

Grant said the funding was depleted at the end of 2024.

He said the city enforces the Cannabis Control Act using its municipal bylaw enforcement officers, but the work is difficult and beyond the scope of the city. The act gives municipal bylaw enforcement officers limited authority, he said. 

"These officers do not have arrest powers and are not permitted or trained to use force while carrying out enforcement activities," Grant said. "This makes the enforcement of unlicensed cannabis dispensaries challenging and presents health and safety risks to officers."

Since Jan. 1, 2024, the city, with the help of the police, has taken 92 enforcement actions, including executing search warrants, and has laid 206 charges, Grant said. The city has obtained 116 convictions since 2019 against illegal operators and property owners.

Ontario to work with 'all partners' to enforce rules

In a statement Friday, the Ontario government said enforcement will continue, but it did not specify who will do the work in Toronto.

"We will continue to ensure there is integrity in the regulated market by working with all partners," said Keesha Seaton, spokesperson for the Ontario ministry of the attorney general.

Seaton said the government announced last year that it will continue to support cannabis enforcement efforts by providing $31 million over three years. The money will enable the OPP-led Provincial Joint Forces Cannabis Enforcement Team to respond to illegal cannabis production, sale and distribution.

Toronto police not told that city will stop enforcement

The Toronto police, for its part, said it was not informed of the city's decision to stop enforcing bylaws governing illegal cannabis stores, due to safety concerns, but is open to collaborate with the city.

Toronto police are focused on "critical issues" including drug and opioid trafficking, reducing gun violence and combatting crimes such as carjackings and home invasions, spokesperson Stephanie Sayer said. "These challenges are having a traumatic and devastating impact on our communities, and we prioritize them in our efforts to enhance public safety."

Two cannabis shop owners who operate legally in Toronto say they are disappointed but not surprised the city is bowing out.

Al Shefsky, owner of Body and Spirit Cannabis, said if no one cracks down on his illegal competitors, it will place him at a disadvantage and could pose dangers to the public.

"The government's warning us about how dangerous these products are and that they're laced with pesticides, which is true, and that there's no quality control and it's a danger for the public to go in there and shop, but they let them operate in plain view," he said.

Paul McGovern, president of Vertie Cannabis Inc. and a former Toronto police officer, said it's time for the police to step back in to level the playing field for legal shop owners. He said enforcement of this kind of illegal activity is police work, and "the only ones who are really profiting here are criminals and organized crime."

"Legitimate businesses are being threatened through extremely unfair competition that's largely gone unchecked," he said. "That threatens the very essence of legalization, if you ask me."