After five years of compliance and enforcement action by the Community Safety Unit (CSU), the Victoria Cannabis Buyers Club Society (VCBC), an illicit medical cannabis dispensary in Victoria, was issued a fine of over $3.2 million.
A History of Illegal Activity
The dispensary has a history of operating an illegal store. Back in May 2019, the CSU went to the store to educate the owners on the seizure authorities and the consequences for selling cannabis contrary to the Cannabis Control and Licensing Act (CCLA).
Then in November 2019, CSU officers conducted an enforcement inspection at VCBC’s store. When VCBC continued to operate its illicit cannabis store, CSU Officers conducted a second enforcement inspection in July 2020. During these two enforcement inspections, CSU Officers seized cannabis from VCBC’s store pursuant to the CCLA.
In January 2022, the Director of the CSU issued a Notice of Administrative Monetary Penalty proposing to impose an administrative monetary penalty (AMP) on VCBC based on CSU’s enforcement inspections.
Following a hearing, the Deputy Director issued a compliance order on July 30, 2024, imposing an AMP in the amount of $3,235,465.74 on VCBC pursuant to section 94 of the CCLA. The Deputy Director concluded that VCBC was selling cannabis in contravention of section 15 of the CCLA. After considering all relevant factors, including the need for deterrence, the Deputy Director exercised her discretion to impose an AMP on VCBC. In reaching this decision, the Deputy Director also considered the statutory purposes underlying the CCLA, which include to prioritize the health and safety of British Columbians, protect children and youth, reduce the illegal cannabis market, and support economic development opportunities in the province.
Pursuant to the CCLA, the amount of the AMP is equal to two times the retail value of the cannabis that was sold, possessed for the purpose of sale, or produced in contravention of the CCLA. The Deputy Director calculated the retail value of the cannabis that VCBC sold and possessed for the purpose of sale was $1,617,732.87 and therefore, the AMP imposed on VCBC is $3,235,465.74.