Ontario’s cannabis retail regulator, the Alcohol and Gaming Commission of Ontario (AGCO), fined Cannabis Xpress 200,000 Canadian dollars ($147,000) for allegedly violating the province’s anti-inducement law for cannabis retailers.
The penalty marks the AGCO’s first-ever fine under the inducement provisions of Ontario’s Cannabis Licence Act, the regulator confirmed.
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Inducement agreements are akin to “slotting fees” in other retail sectors and involve product makers paying retailers for shelf space and preferential treatment.
Cannabis Xpress founder and CEO Chris Jones declined to comment when contacted Monday by MJBizDaily.
The AGCO’s enforcement move calls into question a sometimes-controversial revenue stream for some retailers in Canada’s biggest adult-use marijuana market.
Ontario law and AGCO rules “prohibit Ontario cannabis retailers from asking for or accepting inducements from cannabis
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