Ontario Cannabis Store unable to make deliveries after partner faces cyberattack
TORONTO - The Ontario Cannabis Store says a cyberattack faced by one of its logistics partners has left the provincial pot distributor unable to process or deliver orders to marijuana shops and customers.
The OCS said Monday evening there is no indication that its systems were targeted or its customers' information compromised during the Aug. 5 attack on the parent company of its third-party distribution centre, Domain Logistics.
“However, out of an abundance of caution to protect OCS and its customers, the decision was made to shut down Domain Logistics' operations until a full forensic investigation could be completed,” the OCS said in a statement.
Domain Logistics did not immediately respond to a request for comment, but the OCS said it is working closely with the company and third-party cybersecurity experts to conduct an investigation, which is underway and expected to be complete within the coming days.
The breach stands to impact customers who shop for pot on the OCS website - the only legal online retailer of recreational cannabis in Ontario - and roughly 1,333 licensed cannabis stores, which have no choice but to buy the products they sell from the government-backed OCS.
An OCS letter to retailers obtained by The Canadian Press said the launch of any new products scheduled for this week will now be “delayed until further notice.”
“As a goodwill gesture,” the OCS will also waive all retailer delivery fees until Sept. 30 and a $500 processing fee for one emergency order per store between Sept. 1 and March 31, 2023.
The OCS and Domain Logistics have not said how soon deliveries may be restarted, but promised to provide updates on the matter as they became available.
The incident follows an OCS announcement May 11 that the Ontario Provincial Police were investigating the “misappropriation” of confidential store sales data.
That breach “was no failure of IT security or systems,” the OCS said, after it quickly launched an investigation to identify the source, restricted access to internal data reports and notified the police.
Both breaches came amid heightened competition in Ontario's cannabis industry, which has seen the number of pot shops explode in recent months.
Many predict store closures are on their way because demand for cannabis has not increased at the same rate as shop openings, the illicit market remains strong and stores are consistently having to reduce their margins as rivals steadily drop prices.
This report by The Canadian Press was first published Aug. 8, 2022.
CTVNews.ca Top Stories
Poilievre says Canadians 'fleeing' to Nicaragua, Liberals say it shows he 'doesn't have a clue'
Liberal parliamentarians are criticizing Conservative Leader Pierre Poilievre over a new video in which he promotes the idea that some Canadians are 'fleeing' Canada to live in Nicaragua because they can't afford a house in this country.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
Trudeau must more publicly support ICC decisions amid Israel-Hamas war: ex-ministers
A group of prominent former politicians and current academics is asking Prime Minister Justin Trudeau to change his tone on the possibility of arrest warrants for senior Israeli leaders.
'Do not drive': Nissan warns Canadian drivers of explosion risk impacting 48,000 vehicles
Car manufacturer Nissan has issued a do-not-drive warning for some older vehicles equipped with Takata airbag inflators, due to the risk of explosion during a crash.
Infant dies in ATV crash, N.S. RCMP says alcohol may be a factor
An infant has died and three others, including another child, were taken to hospital following an ATV crash in Forties, N.S., on Monday.
Police clear intersection of pro-Palestinian protesters on UBC campus
Police cleared pro-Palestinian protesters from a main intersection at the University of British Columbia campus in Vancouver on Wednesday.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
Conservative Leader Pierre Poilievre's housing plan defeated in House of Commons
Conservative Leader Pierre Poilievre's housing bill has been defeated in the House of Commons with the Liberals, New Democrats and Bloc Quebecois voting against the legislation.
'Scandals and secrets': On board the world's most exclusive private residential ship
It’s a floating city exclusively home to the 1 per cent, a playground for multimillionaires and billionaires that circumnavigates the world's oceans.