Key Takeaways:
- The Ontario Cannabis Store claims that because of a cyberattack on one of its logistical partners, it is unable to process or deliver orders to marijuana businesses and customers.
- All forthcoming product launches will now be “delayed till further notice,” according to an OCS letter to merchants that was obtained by The Canadian Press.
The state marijuana distributor, according to The Ontario Cannabis Store, is unable to process or deliver orders to marijuana businesses and customers due to a cyberattack suffered by one of its logistics partners.
The OCS stated on Monday night that there is no indication that the attack on Domain Logistics, the parent business of its third-party distribution center, on August 5 attacked its systems or compromised the information of its customers.
The OCS said in a statement that it had decided to halt Domain Logistics’ operations “out of an excess of caution to protect OCS and its customers” until a thorough forensic examination could be carried out.
Requests for comment from Domain Logistics were not immediately returned. Still, the OCS stated that it is collaborating closely with the business and outside cybersecurity specialists to carry out an investigation, which is already underway and also should be finished in the next few days.
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Customers who buy marijuana through the only legal online retailer of recreational cannabis in Ontario, OCS, will be affected by the breach, as will the 1,333 licensed cannabis shops that are required to purchase their products from the government-backed OCS.
The Canadian Press got an OCS letter to merchants stating that all upcoming product launches will now be “deferred until further notice.”
The OCS will also forgo all merchant delivery fees until September 30 and a $500 processing fee for one emergency order per store from September 1 through March 31, 2023, as a “goodwill gesture.”
Although the OCS and Domain Logistics have not specified when deliveries will resume, they have committed to do so as soon as new information becomes available.
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The event happened in response to a May 11 OCS revelation that the Ontario Provincial Police was looking into the “misappropriation” of private store sales information.
The OCS swiftly investigated the source, blocked access to internal data reports, and alerted the police about the incident, concluding that “there was no failure of IT security or systems.”
Both violations occurred during increased competition in Ontario’s cannabis market, where the number of dispensaries has been surging lately.
Since the demand for cannabis has not expanded at the same rate as store openings, the illicit market is still strong. Businesses are frequently forced to reduce their margins as competitors constantly lower prices; many believe store closures are imminent.
The Canadian Press initially released this article on August 8, 2022.
Source: CTV News
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