Contraband tobacco is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes.
Illegal cannabis does not meet regulatory requirements. Illegal online sellers connected to organized crime groups operate non-regulated websites in the province.
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Tobacco Summary 2020-2025
| 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | |
| Contraband Tobacco (in cartons) | 18,985 | 36,520.11 | 49,029 | 71,050 | 240,584 |
| Tax Avoidance | $1,452,811 | $2,051,981 | $2,922,916 | $4,263,000 | $14,435,040 |
Contraband tobacco FAQs
How do you recognize contraband tobacco?
Contraband tobacco can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the words “DUTY PAID CANADA DROIT ACQUITTE” on packages of cigarettes and cigars or pouches of tobacco.
- Contraband tobacco packaging does not contain health warnings in accordance with Health Canada regulations.
- Contraband tobacco packaging may also come in odd sizes, unusual brand names and printed with bright colours. Under federal tobacco regulations, legal cigarettes are required to be printed in plain and standardized packaging.
Is there an increase in contraband tobacco activities in Alberta?
In the past five years, AGLC has seen a significant rise in contraband tobacco activities in Alberta. During that same time, Alberta has seen a drop of more than $500 million dollars in tobacco tax revenue. This loss of tax revenue impacts funds going towards health care, public safety and essential services that all Albertans use on a day-to-day basis.
Why has the prevalence of smoking among Albertans remained steady yet legitimate sales of tobacco have declined?
Given the financial situation that some Albertans are facing, people are turning to cheaper alternatives for tobacco that includes contraband cigarettes.
What are the dangers in using contraband tobacco?
Illegally manufactured tobacco products pose public health and safety risks as they lack regulatory controls and inspections oversight. Contraband tobacco products lack self-extinguishing filters that increase the risk of personal injury and property damages due to fires.
What are the penalties for someone charged with selling or possessing contraband tobacco?
Under the Alberta Tobacco Tax Act, fines for possessing or selling contraband tobacco can range from $300 to $1200 under the Specified Penalty Listing. Based on the quantity of contraband tobacco seized, an individual or group can face charges resulting in mandatory court appearances pursuant with the Tobacco Tax Act or Criminal Code of Canada. Penalties for those offences may include jail time and the possibility of receiving fines of three times the tax avoided.
What is AGLC doing to combat contraband tobacco?
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products.
How do you report illegal tobacco production, packaging or trafficking?
Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522. If you wish to remain anonymous, please call Crime Stoppers at 1-800-222-TIPS (8477).
Illegal cannabis FAQs
What is illegal cannabis?
Licensed Alberta cannabis retailers that meet regulatory requirements are the only source of legal online cannabis sales. However, illegal online sellers, often connected to organized crime groups, operate websites in the province.
Illegal cannabis also poses several public health and safety risks:
- Unpredictable amounts of THC than what is regulated or may not be labelled at all.
- Products are not tested for quality control and may contain other illegal drugs and other substances, including illegal drugs.
- Products may contain harmful levels of contaminants that pose fire risks or toxic when inhaled.
Buying on illegal cannabis websites puts your personal and credit card information at risk for fraud and identity theft.
Why did AGLC start investigating illegal cannabis?
In 2024 the government granted AGLC the authority to investigate illegal cannabis operations. Illegal cannabis funds organized crime, reduces government revenue and unfairly disadvantages law-abiding Alberta retailers.
Licensed Alberta cannabis retailers that meet regulatory requirements are the only source of legal online cannabis sales. However, there continue to be illegal online sellers, often connected to organized crime groups, operating websites in the province.
In the past five years, AGLC has seen a significant rise in contraband tobacco activities in Alberta. During that same time, Alberta has seen a drop of more than $500 million dollars in tobacco tax revenue. This loss of tax revenue impacts funds going towards health care, public safety and essential services that all Albertans use on a day-to-day basis.
Why buy legal cannabis?
Albertans are encouraged to make sure they are choosing safe, legal purchasing options to protect themselves from illegal products and the potential from becoming victims of other crimes (identity theft, financial information theft).
Legal cannabis products must comply with rigorous safety standards for quality, advertising, packaging and labelling. Albertans can visit CannnabisSense.ca/buylegal to learn more about how to tell if you are buying legal cannabis.
How can you tell if cannabis is legal?
- Look for the Canadian Universal THC symbol
- Legal cannabis packaging must have an un-tampered excise stamp
- Plain packaging – if the packaging is colourful, uses the brand name of a known food or candy product, or is visually appealing, it is not legal
How do you know if an online cannabis website is legal?
Look for these identifiers to know if an online cannabis site is legal:
- Alberta address and phone number
- Information on product recalls
- Only ships in Alberta
- CannabisSense banners
- 30g limit per transaction
- 10mg THC limit per edible package
How do you report illegal cannabis production, packaging or trafficking?
Albertans who suspect illegal cannabis production, packaging and/or trafficking are encouraged to contact AGLC’s Cannabis Enforcement Unit at 1-800-577-2522. If you wish to remain anonymous, please contact Crime Stoppers at 1-800-222-TIPS (8477).
How does contraband tobacco or illegal cannabis affect me if I don’t smoke or consume?
Contraband tobacco and illegal cannabis are issues that impacts all Albertans. Money made from contraband tobacco and illegal cannabis sales go back to criminal organizations instead of funds towards our health care systems, roads, schools and other vital services used by Albertans.
Those who purchase contraband tobacco and illegal cannabis help ensure the public availability of unregulated, dangerous products, greater access and affordability for youth and make our communities less safe.
How are retailers impacted by contraband tobacco and illegal cannabis?
Sales of contraband tobacco and illegal cannabis products has undercut the profits of retailers. A 2023 study found that contraband tobacco likely accounted for nearly 30 per cent of the total tobacco sales in Alberta.*
*2024 Ernst & Young report on Contraband Tobacco in Alberta, Manitoba, Quebec, New Brunswick and Nova Scotia