A cannabis store in Kelowna has been ordered to pay a $7,000 fine for failing to check the ID of a 17-year-old who bought a pack of THC gummies. The store, Kiaro Cannabis, was caught in a sting operation by the BC Liquor and Cannabis Regulation Branch (LCRB) in July 2023.
How was the store busted?
The LCRB conducts regular inspections of cannabis and liquor businesses in BC to ensure compliance with the law. One of the methods they use is the Minors as Agents Program (MAP), which involves sending underage agents to attempt to buy alcohol or cannabis products.
On July 12, 2023, a 17-year-old agent entered Kiaro Cannabis in downtown Kelowna and selected a five-pack of Strawberry Mango SOURZ by Spinach, a brand of cannabis gummies. The store clerk, who was also the manager on duty, sold the product to the minor without asking for their ID or age.
Immediately after the sale, an adult inspector entered the store and informed the employees that they had sold cannabis to a minor. The inspector seized the product and issued a contravention notice to the store.
Why was the store fined?
Kiaro Cannabis admitted that they had violated the Cannabis Control and Licensing Act, which prohibits selling cannabis to anyone under 19 years of age. However, they argued that they had a defense of due diligence, meaning that they had taken reasonable steps to prevent such a violation from occurring.
The store presented evidence that they had a comprehensive training program and an effective ID policy for their employees. They also said that the manager who sold the cannabis to the minor was suspended without pay for five days and received a written warning.
However, the LCRB was not convinced that the store had shown due diligence. The branch found that the store had failed to provide evidence of how their training and ID policies were implemented and monitored at the Kelowna location. The branch also suggested that the store could improve its point-of-sale system by adding a pop-up question that would require the employee to confirm that they had checked the ID of the customer before completing the sale.
The LCRB decided to impose the minimum penalty for a first offense of this type, which is a $7,000 fine. The store has the option to apply for a reconsideration of this decision within 30 days.
What does this mean for the cannabis industry?
The case of Kiaro Cannabis highlights the importance of complying with the regulations governing the sale of cannabis in BC. The LCRB has the authority to conduct inspections and impose penalties for any violations of the law. The penalties can range from fines to license suspensions or cancellations.
The LCRB advises all cannabis retailers to ensure that they have adequate training and policies in place to prevent selling cannabis to minors. The branch also encourages retailers to use technology such as scanners or pop-up questions to verify the age of customers.
The LCRB says that the MAP is an effective tool to deter and detect underage sales of cannabis and liquor. The branch says that the majority of the businesses they inspect comply with the law and refuse to sell to minors.