The Cannabis Act and an Unintended Criminal Consequence:

Since the legalization of cannabis in Canada through the Cannabis Act of 2018, one could argue that the nature of cannabis-related criminal activity has evolved rather than disappeared. Before legalization, criminal enterprises generated revenue primarily through the illegal cultivation, distribution, and sale of cannabis. Following legalization, however, some criminal elements may have adapted their methods, finding it more profitable to target licensed retailers, stealing legally produced cannabis and reintroducing it into illicit markets through existing criminal distribution networks.

Perhaps this discussion is best started at the source of it all: Why was the Cannabis Act introduced in the first place?

The primary objective was to protect young people from cannabis. Prior to legalization, cannabis was widely available through illegal dealers who operated without age restrictions or regulatory oversight. The government argued that a regulated legal market, combined with strict age-verification requirements, would be more effective at limiting youth access than outright prohibition.

Additional objectives included reducing the size of the illicit cannabis market, improving public safety, reducing criminal penalties associated with personal possession, and generating economic benefits through taxation. Importantly, these measures were not enacted because Health Canada considered cannabis safe. Health Canada continues to caution that cannabis use carries risks, particularly for adolescents, pregnant women, frequent or heavy users, and individuals with certain mental health conditions. The rationale behind legalization was therefore one of regulatory control rather than endorsement.

Cannabis use for its psychoactive and mind-altering effects dates back thousands of years. Archaeological evidence from the Jirzankal Cemetery in western China suggests that cannabis rich in psychoactive compounds was being burned in wooden braziers as early as 500 BCE. For centuries, people have consumed substances capable of altering mood, perception, and behaviour, despite the known risks of addiction and adverse health effects. It is therefore reasonable to assume that public opinion on legalization will always remain divided, with advocates and opponents presenting compelling arguments on both sides.

This article is not intended as a debate about whether cannabis should be legal. Rather, it is an observation about public policy and the unintended consequences that can emerge when legislation reshapes an existing market.

There is little conclusive evidence that legalization has dramatically reduced youth cannabis use. At the same time, there is also no compelling evidence that legalization has resulted in a substantial increase in underage consumption. The picture remains complex and continues to evolve.

Criminality, however, is arguably as old as civilization itself. Where laws exist, there will always be individuals willing to break them. It is here that one of the most significant unintended consequences of legalization may be found.

Today’s illicit cannabis dealer no longer necessarily needs to cultivate cannabis or manage complex production operations. Instead, some criminal groups may have shifted their focus toward stealing products from licensed businesses. In effect, legal retailers have become part of a new supply chain for illicit markets. Unlike hidden grow operations, licensed cannabis stores often maintain regulated inventories, carry valuable products, and may handle significant amounts of cash. These characteristics can make them attractive targets for opportunistic
criminals.

Crime statistics specific to cannabis retail businesses remain limited, as many police services do not yet categorize crime in this manner. However, incidents have been reported across Canada. For example, Peel Regional Police in Ontario confirmed multiple robberies targeting cannabis stores within a relatively short period, while retailers have described such incidents as part of a broader industry trend.

Ironically, the Cannabis Act’s primary goal was to protect young people. Yet as illicit distribution networks continue to operate, the responsibility for limiting youth access now rests heavily on the shoulders of the legal cannabis industry. This responsibility extends beyond compliance with age-verification laws. It also includes safeguarding inventory from theft and preventing legal products from being diverted into illegal markets.

Legalization has transformed many adult cannabis consumers from participants in the illegal market into customers of licensed retailers. In doing so, illicit dealers may have lost a significant portion of their adult customer base. Faced with this reality, some may be incentivized to focus on younger consumers who remain outside the legal purchasing framework.

This presents two significant risks: first, the increased targeting of younger consumers by illicit distributors; and second, a growing demand for stolen cannabis products to supply that market.

These risks can be mitigated through robust, layered security measures.

Visible security remains one of the most effective deterrents against opportunistic and organised crime. Xpanda security gates have a proven track record of helping to prevent burglaries before they occur. Their highly visible design communicates that a premises is protected, encouraging criminals to move on to less secure targets. After all, criminals often seek easy opportunities, not difficult ones.

As we continue to understand the evolving consequences of cannabis legalization, the importance of protecting licensed retailers should not be underestimated.

The duty to secure cannabis stores extends beyond protecting inventory and profitability. It is also about limiting opportunities for criminal networks, reducing the diversion of cannabis into illicit markets, and ultimately supporting the broader objective that inspired legalization in the first place: protecting young people.

Jurie Botha

Xpanda Global Security Solutions