Ontario Cannabis Store and Delivery Rules (2026)

Ontario’s cannabis store and delivery rules are enforced day to day by the Alcohol and Gaming Commission of Ontario (AGCO), which licenses every private store, inspects it and can fine or suspend it. The core idea is a closed, recorded supply chain: every product comes from the Ontario Cannabis Store (OCS), the province’s only wholesaler, and every unit is tracked from the delivery truck to the customer.

So an Ontario store can’t shop around for stock, can’t use a courier app and can’t sell anything outside its point-of-sale (POS) system.

This guide is for owners, managers and compliance staff. Licensing is covered in how to open a cannabis store in Ontario. This guide is general information, not legal advice. Confirm current rules with the AGCO.

Key takeaways

All inventory must be bought from the OCS, and selling to or buying from other stores is allowed only in narrow closing-store cases.
Delivery is allowed, but only by your own trained employees, from your own store’s stock, to a residence or other private place in Ontario.
Your POS is your compliance record: if a sale, transfer, return or destruction isn’t in it, the AGCO sees a gap.
The AGCO uses warnings, monetary penalties, suspensions and revocations, and the biggest penalties target minors and supply outside the OCS.
Rules differ by province and change often. Confirm anything you’re unsure of with the AGCO before you act.

Who enforces cannabis store rules in Ontario?

AGCO: licenses operators, stores and managers, writes the Registrar’s Standards for Cannabis Retail Stores, inspects and penalizes. Appeals go to the Licence Appeal Tribunal.
The rulebook: the Cannabis Licence Act, 2018 (CLA), Ontario Regulation 468/18 under that Act, the Registrar’s Standards, and the Cannabis Control Act, 2017 for age and intoxication rules.
OCS (Ontario Cannabis Retail Corporation): the sole wholesaler, whose Retailer Agreement and handbook set ordering, payment, returns and recalls.
Others: Health Canada (products and labels), the Canada Revenue Agency (taxes), police, municipal bylaw officers and public health units (Smoke-Free Ontario Act, 2017).

Buying inventory from the OCS

Under section 19 of the CLA, a store may buy cannabis only from the OCS, and under section 18 it may sell only OCS-supplied cannabis in its original packaging. Federally licensed producers sell to the OCS, not to you. Producers can’t give stores inducements such as payments for shelf space, and agreements with producers can’t require minimum quantities or set display space (Registrar’s Standards 6.4 to 6.6).

Orders and delivery from the OCS

Each store has an assigned order day shown in the OCS wholesale portal. Ordering every week is optional, but stock isn’t guaranteed from week to week.
Payment is by pre-authorized debit when the order ships. Repeated failed payments lead to fees, holds and then a prepayment requirement.
An OCS carrier delivers weekly; trained staff must be present for the whole delivery window, even outside store hours.
Count the boxes against the bill of lading, note differences on every copy, and sign with the driver. Report shortages, overages or wrong products through the OCS claims dashboard; wrong deliveries are reported the same day by phone or chat.

Testing and certificates

Stores don’t test products or hold certificates of analysis. Licensed producers test under federal rules before the product reaches the OCS. Your job is to check that each package is sealed, labelled and carries an Ontario excise stamp; a missing or damaged stamp is reported to the OCS as a product quality complaint.

Returns, recalls and destruction

OCS purchases are final sale except for damage, shipping errors or recalls. In a recall, quarantine affected stock in a marked container, post the notice, file the OCS report and return product when asked; credits go to your OCS account. Ineligible stock (expired, damaged, recalled or returned) is kept apart and destroyed on camera under a licensed manager’s supervision.

Transfers between stores

An operator with several stores may move stock between its own locations if the transport is secure, both stores record the transfer in their POS, and the AGCO is notified (Registrar’s Standard 4.2). Since January 1, 2025, a store that has asked to cancel its authorization may sell all or part of its stock to one other authorized store under section 17.1 of O. Reg. 468/18, with notice to the AGCO. Outside that case, stores can’t buy from each other.

How product moves through an Ontario store

Flow chart of the Ontario cannabis supply chain: licensed producer, OCS warehouse, store order on its assigned day, OCS carrier delivery with bill of lading, receiving into the POS, secure storage and counts, sale with an age check in store, curbside or by delivery, then reporting to the OCS and AGCO — The closed supply chain every authorized Ontario store follows. Sources: AGCO Registrar’s Standards; OCS Wholesale Handbook.

Seed-to-sale tracking in Ontario

Ontario stores don’t use Metrc, BioTrack or plant tags. Tracking runs through three records:

Your POS. It must come from an OCS-approved provider and be integrated with the OCS Data Reporting Platform, which collects your sales and inventory data automatically each day (Registrar’s Standards 8.5 and 8.6). Every sale, transfer, return, destruction, loss and adjustment must be entered (Standard 8.7), traceable to the employee.
Physical counts. Full counts are required on a set schedule or whenever the AGCO asks. Adjustments go into the POS, and discrepancies are reported to the AGCO.
The Monthly Federal Report. Filed through your iAGCO account, it lists employees by role and, for each SKU, opening stock, purchases, returns, sales, destruction, theft or loss and closing stock. This is how Ontario stores take part in Health Canada’s cannabis tracking system, often called CTLS.

Pending federal change: on September 26, 2026, Health Canada proposed amending the Cannabis Tracking System Order to repeal federal reporting by provincially authorized retailers. It is only a proposal until published as final, so keep filing; AGCO record-keeping stays either way. Our seed-to-sale tracking guide compares systems across markets.

Selling to customers

Age and ID: nobody under 19 may enter or buy. Staff must check ID before entry for anyone who appears young, and a store must take reasonable steps to stop adults buying for minors (Standard 5.1).
Intoxication: no sales to anyone who is or appears intoxicated (CLA s. 7(5)). Log refusals as proof of compliance.
Per-customer limit: enforced per visit, per online or phone order and per delivery. Your POS should block oversize baskets.
Hours: earlier opening has been allowed since May 1, 2026.
Sales floor: no self-service displays or vending machines. Product must not be visible from outside, sensory containers must be locked and tamper-proof, and display product is bought from inventory through the POS (Standards 2.5 to 2.7).
Samples and gifts: no free cannabis, accessories or other benefits as an inducement to buy (Standard 6.3), so free samples are out.
Discounts and loyalty: the OCS doesn’t set retail prices, so ordinary price discounts are your call. Points or rewards programs aren’t addressed directly in the rules; ask the AGCO before launching one, given the ban on inducements.
Medical: no medical counter; patients shop as regular adults or buy from federally licensed sellers.
Responsible use: make Health Canada’s consumer information about cannabis available to customers (Standard 7.1).

Delivery and curbside pickup rules

Ontario allows both under sections 20.1 and 20.2 of O. Reg. 468/18.

Who may deliver: only the store authorization holder or its employees, trained the same way as sales staff. Third-party couriers and delivery apps are not allowed, and you can’t contract out distribution (s. 14(1)).
Delivery business model: a store can’t operate entirely or mainly as a delivery business.
Where: only to a residence or other private place in Ontario, at the address on the order. A hotel room counts as a private place. You can’t deliver to other provinces, and you can’t deliver to a First Nation that has asked the AGCO to restrict delivery.
Stock: orders are placed with one specific store and filled from that store’s on-site stock. Product can leave the store only after an order is received.
Hours: delivery has its own, narrower window than store hours, and only while the store is open.
ID at the door: the recipient must be at least 19, and the driver must check ID if the person looks under 25. No hand-offs to minors or intoxicated people.
Refused or failed deliveries: product goes back to the store the same day and stays there until the next delivery attempt.
Records: original unopened packaging only; keep the buyer’s name and address.
Vehicles and cash: transport must be secure, but vehicle markings, GPS, lockboxes, cash limits and maximum product per vehicle are not set in the rules; ask the AGCO.
Curbside: the handover must happen in an area next to the store covered by your cameras, by the holder or an employee.

Operating rules at a glance

Rule	Requirement	Where it comes from
Per-customer sale limit	30 g dried cannabis or equivalent per visit, online or phone order, or delivery	CLA s. 21
Store hours	7 a.m. to 11 p.m., any day	O. Reg. 468/18 s. 17
Delivery hours	9 a.m. to 11 p.m., while the store is open	O. Reg. 468/18 s. 20.2(1)
ID check	Anyone who appears under 25, before entry or hand-off	O. Reg. 468/18 s. 20(1)
Minimum age of staff	19	CLA s. 23
Staff training	Approved course before first shift; new required training within 60 days	O. Reg. 468/18 s. 21; Standard 1.1
Manager span	One licensed manager accountable for up to 5 stores	Standard 1.3
Camera footage retention	At least 30 days, 24-hour coverage inside and just outside	Standard 2.1
Record retention	At least 3 years	Standard 8.1
Inventory count	Full physical count at least monthly	Standard 8.2
Destroy ineligible cannabis	At least monthly; vape products as soon as practicable	Standards 3.3 and 3.5
Monthly Federal Report	Due by the 5th of each month via iAGCO	AGCO Monthly Federal Reporting
OCS delivery claims	Within 2 business days of receipt	OCS Wholesale Handbook
Recall response	Online report within 24 hours; notice posted for 30 days	OCS Wholesale Handbook
Address change notice	Within 5 days	CLA s. 16
Retail seal	At least 17 cm wide and 20 cm long, visible from outside	CLA s. 7(2); AGCO
Cash on hand, delivery vehicle value or weight	Not set in the rules; ask the AGCO	None published

Packaging and labelling

Packaging is set federally and handled by producers; you sell only intact original packages. Every legal package is child-resistant and plain, shows the standardized red THC symbol, a rotating Health Canada warning, THC and CBD content and an Ontario excise stamp. Per-package THC caps apply to edibles, extracts and topicals; the consumer limits are in our Ontario cannabis laws guide.

Federal amendments in force on March 12, 2025 (SOR/2025-43) allow QR codes, clear windows and simpler potency labels. Producers had to switch labels by March 12, 2026, but provincially authorized retailers may keep selling older-label stock indefinitely. More detail is in our packaging and labelling guide.

Advertising and marketing

Two sets of rules apply: the federal Cannabis Act’s promotion limits and Section 6 of the Registrar’s Standards. Under Standard 6.2, your advertising must not:

appeal to or target anyone under 19;
be false, misleading or deceptive;
suggest cannabis brings success, enjoyment or solves problems;
link cannabis with medicine, health or pharmaceuticals;
suggest illegal sales; or
link cannabis use with driving or other activities that need care or skill.

Federally, promotion is limited to factual and brand information for adults, with no lifestyle imagery or endorsements. Product must not be visible from outside. Websites and apps must take reasonable steps to confirm users are 19 or older and must show the retail seal and your authorization details. Social media posts count as advertising, and giveaways of cannabis or accessories likely breach the inducement ban, so ask the AGCO first. Our dispensary marketing and local SEO guide covers what you can still promote.

Security, staff and records

Cameras: high-resolution, always on, covering entrances and ID checks, pickup areas, POS, receiving, the sales floor, storage and the curbside area.
Storage and access: cannabis is stored securely and only staff can reach it; every access point must be protected against break-ins. The Standards don’t name a specific alarm system, but insurers usually require one.
Staff: criminal background checks at hiring, approved CannSell training before the first shift, and licensed managers for anyone managing the store. See budtender training requirements and dispensary security requirements.
Records: staff and training files, receipts, transfers, sales, destruction, recalls, refusals, delivery addresses and producer agreements. POS and e-commerce systems must be PCI or ISO certified and log all changes (Standard 8.4).

Taxes the business collects and remits

Excise duty is paid by the licensed producer before the product is stamped, so it is already built into your OCS wholesale price; you don’t file excise returns. Stores charge 13% HST on cannabis and accessory sales and remit it to the Canada Revenue Agency. The CRA assigns a filing period by annual taxable sales: annual filing up to $1.5 million, quarterly above that up to $6 million, and monthly above $6 million.

Inspections and penalties for Ontario cannabis stores

AGCO inspectors can inspect stores, demand records and review footage, and obstructing them is a separate contravention. Enforcement runs from warnings to monetary penalties, suspension and revocation. The AGCO updated its penalty schedule on December 5, 2025. Maximum amounts per contravention include:

Up to $100,000: selling to someone under 19, buying from anyone other than the OCS, selling unauthorized product, or failing to prevent diversion to the illegal market.
Up to $15,000: opening outside permitted hours, breaking delivery rules, skipping ID checks, or selling to an intoxicated person.
Up to $8,000: going over the per-customer sale limit, or selling outside recorded POS sales.

Recent examples: in April 2024 the AGCO issued $200,000 in penalties to the operator of the Cannabis Xpress chain over alleged producer inducement deals, and in December 2024 it proposed a 7-day suspension for Montrose Cannabis in Pickering over alleged third-party delivery, out-of-province sales and sales over the limit. Both were allegations open to appeal.

Ontario compliance at a glance

75,818OCS deliveries to authorized stores in 2025 (OCS, 2026)

4,971active wholesale SKUs in the OCS catalogue on December 31, 2025 (OCS, 2026)

2,583SKUs added to the OCS catalogue during 2025, as stock turns over fast (OCS, 2026)

$3.75average OCS wholesale price per gram of dried flower, including pre-rolls, before HST in 2025 (OCS, 2026)

Your Ontario cannabis store compliance checklist

Daily: confirm cameras are recording; check ID at the door; refuse intoxicated buyers and log refusals; run deliveries only with trained staff during delivery hours; return undelivered orders the same day; make sure the POS is syncing to the OCS platform.
Each OCS delivery: have trained staff on site, count boxes against the bill of lading, file claims quickly, receive everything into the POS.
Weekly: review POS adjustments; check the OCS portal for recalls; quarantine ineligible stock.
Monthly: full physical count and reconciliation; destroy ineligible cannabis on camera; file the Monthly Federal Report; file HST if you’re a monthly filer.
Annually: review staff training, audit record and camera retention, and renew licences on time.

Our dispensary compliance checklist is a printable version.

Get found on WhereLeaf

Compliance keeps your doors open; customers still need to find them. List your store on WhereLeaf with your hours, delivery area and menu, and compare our listing packages if you want featured placement. Every listing we accept must be a legal, authorized store. For customer-facing rules, share our Ontario cannabis laws guide, and see our cannabis licence guides for other markets.

Frequently asked questions

Can a cannabis store buy from another store in Ontario?

Only when the selling store has asked the AGCO to cancel its authorization. It can then sell its stock to a single other authorized store, and neither store can be under suspension or facing a proposed suspension or revocation.

Can we use DoorDash, Uber Eats or a courier?

No. Ontario bans third-party delivery and contracts for distribution services, and the AGCO has proposed suspensions over it. Delivery staff must be your own employees.

Can delivery drivers carry cash?

The rules don’t ban cash on delivery or set a cash limit, but transport must be secure. Set a written cash policy and confirm it with the AGCO.

Can a store sell to customers in other provinces?

No. Online orders must be delivered to a private place in Ontario. Shipping to other provinces breaks the Cannabis Licence Act and may break the federal Cannabis Act as well.

Do we need to open a sealed package for a customer to smell?

No. Use a locked sensory container with display product bought through the POS, and destroy it properly when you replace it.

Can a licensed producer pay for shelf space or staff incentives?

No. Producers can give only items of nominal value, training and education, and a few listed agreement types, and you must keep records of anything you receive.

Sources

Last updated: November 2026. Rules change; always confirm with the AGCO and the OCS.