Ontario has now removed the requirement that says cannabis stores cannot have cannabis or cannabis accessories visible from the exterior of the premises.

The Alcohol and Gaming Commission of Ontario (AGCO) sent a notice to retailers confirming the rule change on May 23, following an announcement on May 15.

The change removes Ontario’s Standard 2.5 from the Registrar’s Standards for Cannabis Retail Stores, eliminating the registrar’s requirement that cannabis and accessories not be visible from the exterior of the premises.

The AGCO says the change is intended to support cannabis retailers by fostering a more welcoming environment and increasing store safety, while continuing to protect youth from exposure to cannabis. 

Retailers have been calling for changes to the rule, saying it leaves cannabis stores more vulnerable to criminals. 

The provincial agency also says that removing this requirement means the AGCO can focus its compliance and enforcement efforts on other risk areas, contributing to a safer and more sustainable cannabis retail landscape.

Jazz Samra, the owner and founder of Sativa Bliss Cannabis, with five locations in Ontario, has been lobbying for such changes and expressed approval in a social media post. 

“A big thank you to everyone who helped advocate for removing the window coverings. This is a huge step for cannabis retailers. We no longer have to operate in the shadows. 

“Thank you to everyone in the government that listened and put aside their biases and fears to stand up for employee safety and let cannabis stores operate in the public just like all other businesses.”

Tom Uszynski, the owner of Uptown Herb with two locations in Ontario, one in Grand Bend and one in Waterloo, shares Samra’s enthusiasm and would like to see the AGCO now also remove the provincial requirement to check customers’ IDs upon entrance to the store. 

“I really think it’s a great step forward,” says Uszynski, noting that he had planned for such changes by installing movable window blinds in his Grand Bend location, rather than the adhesive coverings he used at his Waterloo location.

 “I already instructed my staff in Grand Bend to roll up the windows,” he adds, although the removal of the covering at the Waterloo location may take a little longer. “It’s not too big of a deal, but obviously it’s a waste of money.

“I think the budtender security and staff security are going to be a lot better. It’s going to be more welcoming and inviting. Customers won’t think this is an illegal store. I think it is definitely a great decision on their part.” 

Next, Uszynski says he wants to see Ontario remove the rule requiring retailers to check ID when customers enter the store, rather than at the counter. 

Raju Saini, the president at Piffingtons Cannabis Co., which has stores in Brampton, Kitchener, and Milton, says the change is an affirmation for him, since he already removed window coverings at his stores following a robbery in January. 

“It’s a win in the right direction,” he says. “There are still a lot of things the AGCO needs to do on our behalf, but this is one step closer to some of the changes retailers want to see. I think this also shows retailers can be more vigilant and take certain things into their own hands before AGCO even makes that choice.

“I think sometimes, as retailers, we have to put our neck on the line and be the first to do it. So this tells me that I made the right decision.”

Retailers in other provinces have also made similar arguments about provincial requirements for window coverings. In 2022, Alberta removed such requirements. At the time, the provincial regulator’s executive VP said the board approved the change “to ensure that AGLC policy is not inadvertently contributing to [criminals] targeting these locations due to a lack of visibility into the site”.  

In 2023, BC’s cannabis regulator removed similar requirements for stores in that province, citing similar security concerns. Both provincial regulators had previously argued that such requirements were in line with federal regulations before walking them back. 

Federal regulations state that it is prohibited to promote cannabis, a cannabis accessory, or a service related to cannabis in such a manner that the promotion may be audible or visible from outside a place where young persons are not permitted by law. The AGCO, however, has maintained that window coverings were not a requirement in Ontario, as long as stores found another way to adhere to the federal rule.

“To be clear, the AGCO’s regulatory standards do not require cannabis retail stores to cover their windows,” an AGCO representative told StratCann earlier this year. Through continued engagement with licensees and sector partners, we use every opportunity to remind that the Standards only specify that products must not be visible from outside the store. Licensees can determine how best to meet this standard, including through approaches such as interior wall dividers, opaque cabinetry, the layout of their shelving, and other approaches.”

Today’s announcement goes several steps further than other provinces by moving beyond removing window coverings and toward rejecting these federal requirements. 

Not all retailers are entirely pleased by the changes, though. 

Jennawae Cavion, founder of Calyx + Trichomes, a cannabis retailer in Kingston, says she would have appreciated more notice that such changes were coming.

“This is a long overdue change that has cost retailers safety and thousands of dollars to adhere to,” Cavion tells StratCann. “I recently just built out a store with the old regulations in mind.  There was no warning that this change was coming, and I can’t afford to change course at this point. I wish from the beginning, the AGCO (and Health Canada for that matter) would enact sensible legislation that makes sense from both a public safety standpoint and is reasonable for retailers to adhere to. This example is one of many that need practical reform.”

Harrison Jordan, a Toronto-based lawyer who works in the cannabis space, notes that while the new AGCO rule change addresses the display of cannabis and cannabis accessories, retailers still need to take care to not promote cannabis outside of their store. 

“The AGCO rules that were removed only applied to the display of cannabis and cannabis accessories, not to promotion,” says Jordan. “Thus, stores should take care to ensure that promotions inside their store are not visible from the exterior of it.” 

Retailers, he adds, should do an audit of their promotions, particularly those that may be visible from the outside, before peeling down any window coverings or otherwise making their store more visible.

“Separately, the federal Act at s. 17 and 18 still prohibits sellers from displaying cannabis or accessories if it may be visible by someone under 18, so the federal prohibition still exists and allowing visibility of products and accessories from the exterior is not without some risk, but I have not personally seen that particular federal prohibition enforced in provinces that have removed their own such parallel prohibition – though I could see it happening if the display of the product itself may entice youth or pose public health and safety concerns.”

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