Victoria Cannabis Buyers Club

Order Issued: Reconsideration Order of $3,235,465.74

On May 29, 2019, the Community Safety Unit (CSU) attended a cannabis store operating as the “Victoria Cannabis Buyers Club” (VCBC) located at 826 Johnson Street, in the City of Victoria, BC, for the purpose of providing education on the seizure authorities and consequences for selling cannabis contrary to the Cannabis Control and Licensing Act (CCLA).

On November 14, 2019 and July 15, 2020, CSU Officers conducted enforcement inspections at VCBC pursuant to section 89 of the CCLA. During these enforcement inspections, the CSU Officers seized cannabis pursuant to section 89(1)(g) of the CCLA.

On January 24, 2022, the Director of the CSU issued two Notice of Administrative Monetary Penalties, proposing to impose an administrative monetary penalty (AMP) on each of Ted Smith and the VCBC, a registered society, based on CSU’s enforcement inspections.

Following a hearing, on July 30, 2024, the Deputy Director issued a Compliance Order 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 statutory purposes of the CCLA and the need for deterrence, the Deputy Director exercised her discretion under section 94(1) of the CCLA and imposed an AMP on VCBC. Pursuant to section 94(2)(a) of 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, as determined by the Director. The Deputy Director calculated the retail value of the cannabis that was possessed for the purpose of sale by VCBC was $168,068.44 and the retail value of the cannabis sold by the VCBC between November 7, 2019 to July 15, 2020 was $1,409,264.23, totalling $1,617,732.87. The Deputy Director issued a Compliance Order imposing an AMP of $3,235,465.74 on VCBC.

On September 6, 2024, VCBC submitted an Application for Reconsideration alleging that the Deputy Director failed to observe the rules of procedural fairness and had made  errors of law.

Following a hearing, on October 3, 2025, the Director issued a decision. VCBC did not persuade the Director that the Deputy Director made any errors of procedural fairness or any errors of law that would lead the Director to rescind or vary the Compliance Order. Pursuant to section 95(10) of the CCLA, the Compliance Order was replaced with a Reconsideration Order imposing the $3,235,465.74 AMP on VCBC.