Training Modules
Legal Aspects
One of the primary goals of this course is to leave you with an understanding of the laws governing the sale of alcohol in Ontario. Before we take a walk through the most basic aspects of that, we will first start with some basic details about the legislation governing alcohol, the regulator, and the role of the Liquor Control Board of Ontario (LCBO).
Liquor Licence and Control Act, 2019 (LLCA)
The overarching law governing liquor sales in Ontario through retailers and bars is called the Liquor Licence and Control Act, 2019 (LLCA). Under this Act there are several regulations which you can view by clicking here, or by visiting the Ontario laws website in the “regulations under this act” section.
Through the LLCA, the government outlines the responsibilities for entities seeking to sell, supply, and deliver liquor. To enforce these responsibilities, the LLCA empowers the Alcohol and Gaming Commission of Ontario (AGCO) as a regulator.
The LLCA also sets out the legal requirements for the sale service and delivery of alcohol, including permissible activities under certain licence types, rules for displaying alcohol, requirements for the delivery of alcohol, etc.. Through these provisions, the LLCA seeks to ensure a safe and responsible liquor industry in Ontario.
Alcohol and Gaming Commission of Ontario (AGCO)
Ontario law empowers the Alcohol and Gaming Commission of Ontario (AGCO) as the province’s regulator of all activities related to alcohol, lottery and gaming, cannabis retail, and horse racing. For our purposes, we’ll only focus on the role of the AGCO in regulating alcohol.
As an arms-length regulatory agency of the Ontario government, the AGCO is responsible for administering the LLCA and the regulations made under it, while reporting to a board of directors who, in turn, report to the Ontario Ministry of the Attorney General. The primary roles of the AGCO pertaining to the LLCA are:
Issue liquor licences e.g. liquor retail licences, liquor delivery licences, etc.
Establish standards and requirements in certain areas of liquor regulation. Retail licensees are required to follow the rules and requirements in the Registrar's Standards for Liquor.
Conduct inspections to ensure compliance with Ontario's liquor laws
As a means to inspect facilities and ensure that liquor is sold, served, and delivered responsibly, the AGCO uses a risk-based compliance approach
Liquor Control Board of Ontario (LCBO)
Nearly all Ontarians will recognize the Liquor Control Board of Ontario (LCBO) as the government-owned retailer of spirits, wine, cider, and beer. For nearly 100 years, the LCBO has been the primary retail outlet for purchasing alcohol in the province.
While no longer the sole retailer of alcohol, the LCBO still retains the important role of being the sole wholesaler of record for all licensed grocery and convenience stores, meaning that these stores must purchase all liquor from the LCBO. Further, the LCBO will continue to add value to all Ontarians by performing quality testing on wines and other alcohol and acting as a leader by supporting the marketplace with years of retail best practices. As another arms-length organization, the LCBO also reports to a board of directors who, in turn, report to the Ontario Ministry of Finance.
