Only a retail store authorization holder or its employees can make the deliveries. Third-party delivery is not permitted

It’s official: the Alcohol and Gaming Commission of Ontario (AGCO) has announced the provincial government has permanently green-lit the ability of cannabis retailers to offer delivery and curbside pickup services.

It was an option private retailers initially received during the early days of COVID-19, when alcohol and cannabis retail were deemed essential businesses.

Since then, cannabis delivery and curbside pickup have been authorized (or not authorized) at different times.

Despite the wider playing field, though, not every business will be able to get into the game.

Only a retail store authorization holder or its employees can make the deliveries, which must be made to a residence or private place, including such places as hotel rooms. Third-party delivery is not permitted.

“Please note that the new rules for delivery still will not permit cannabis retail stores to operate entirely or predominantly as delivery businesses,” the AGCO makes clear.

“The new rules will allow cannabis retailers to continue to safely offer consumers greater choice, convenience and access to legal recreational cannabis,” the announcement states.

Of course, there are plenty of new rules that cannabis retailers will need to follow to comply with approved delivery or curbside pickup.

For delivery, among other things, orders must be placed with a specific store location, orders must originate and be fulfilled from that same store with products that are stored on-premises and cannabis may only be delivered during times when the brick-and-mortar location is open to the public.

When operating store websites, apps or other similar online platforms, AGCO reports that licensees must take reasonable measures to ensure customers accessing them are at least 19 years of age and must display the official Ontario cannabis retail seal.

In line with current rules governing curbside pickup transactions, these must be “completed in an area adjacent to the store that is captured by the store’s surveillance system.”

For First Nations communities, delivery “will be permitted unless the community has requested delivery be restricted,” the AGCO adds.

According to Mugglehead, some retailers expect to continue the delivery services they currently offer.

The publication quotes Jennawae McLean, co-owner of Calyx + Trichomes Cannabis, as saying delivery services were popular during COVID-19 lockdowns, but have slowed down as stores have been allowed to reopen.

McLean notes that providing the service can be expensive, including any costs that would be involved in insuring drivers and not wanting drivers to accept cash, given that might increase the potential theft risk. While this may not make sense when a measure is temporary, the issues warranted another look with the move to make the options permanent, she told Mugglehead.