Stolen Cannabis Sales Data – Ontario Cannabis Store

The Ontario Cannabis Store (OCS) says cannabis sales data was stolen in a breach. The Crown monopoly handles the distribution of cannabis in Ontario. It is illegal for licensed manufacturers to ship their products directly to retailers. First they have to go through the Ontario Cannabis Store.

A spokesman for the state monopoly said: “There was no failure of IT security or systems.” However, it was later confirmed that there had been “misappropriation of data”.

Ontario provincial police did not confirm whether an investigation into the stolen cannabis sales records had begun.

Stolen Cannabis Sales Data: What Happened?

The Canadian Press received a letter from the Ontario Cannabis Store. The letter, sent to retailers, confirmed that “confidential store sales data” would be “disseminated in the industry”.

“This data has not been disclosed by OCS, nor have we given permission or consent to disseminate or use this data outside of our organization,” the letter reads. “The data has been misappropriated, disclosed and disseminated. Therefore, we trust that you will not share or use this stolen data in any way.”

Bureaucratic mismanagement

Undermining consumer confidence is natural for the provincial regulator.

Last December, the Ontario Cannabis Store was severely criticized in the Ontario Auditor General’s annual report. The Crown Monopoly frequently misrepresents its inventories. They fail to predict supply and demand, creating constant shortages of product. Inaccurate forecasts frustrate customers and licensed producers, the report said.

In response, OCS announced that it is updating its point-of-sale technology. They aim to improve sales reporting and inventory management.

Stolen Cannabis Sales Data Two

Finding out stolen cannabis sales data from the OCS becomes routine. On November 1, 2018, over 4,000 customers had their private data stolen in a breach. The violation included zip codes and product reference numbers. It also included the names of people who had signed for cannabis shipments.

At the time, the Ontario Cannabis Store assured customers that everything was fine. They said the affected injury accounted for just two percent of customer orders.

dangers of bureaucracy

Theft of cannabis sales data is another reason to abolish the OCS altogether. Many provinces implement “farmgate” models. Here producers can sell their products on site.

Others question the need for a central distributor at all. Especially one that is funded by taxpayers and immune to market competition. This disconnect from ordinary business calculations can be the reason why the OCS keeps failing. With no gain or loss, the bureaucracy cannot allocate resources accurately.

Don’t you think it’s better if producers can sell directly? Or are Ontario’s government-run cannabis stores still a better choice? Please share your comments below and follow us @cannalifenet.