Canada is facing a surge in contraband cigarettes, driven by organized crime groups capitalizing on a growing price gap between legal and illegal tobacco.In Alberta, the Alberta Gaming, Liquor and Cannabis (AGLC) has reported some of its largest-ever seizures of contraband tobacco over the past two months.In Edmonton alone, nearly 67,000 cartons of illegal cigarettes and cigars were confiscated in June — worth more than $12 million — alongside 150,000 grams of untaxed shisha tobacco.Earlier in July, a raid in Red Deer uncovered more than 3,400 cartons, valued at $602,000 and representing over $207,000 in avoided provincial taxes.Rick Barnum, former deputy commissioner of the Ontario Provincial Police Investigations and Organized Crime Command and current Executive Director of the National Coalition Against Contraband Tobacco, says that across the country, enforcement has improved dramatically.“I’ve seen a huge change in the amount of enforcement regarding contraband tobacco in the recent months, and I think it’s outstanding,” Barnum told the Western Standard.“The reality is that contraband tobacco has absolutely turned into a fundamental profit-generating product for organized crime groups.”.Alberta cracks down on illegal tobacco in 2025 budget with stiffer penalties, more officers .Barnum warns that Western Canada is now firmly in the sights of criminal networks.He estimates “47 to 50% of the cigarette market” in some Canadian communities is illegal, despite official statistics suggesting fewer smokers overall.“There's a huge move currently by these groups to target Western Canada, and we've seen a pretty large increase in the amount of tobacco that's being pushed there.”Barnum says that 154 organized crime groups in Canada are involved in contraband tobacco, according to RCMP analysis.Most of the product — Barnum says 99% — is manufactured on or near First Nations territories in southwestern Ontario and Quebec, sometimes under the guise of legitimate licensed production, but diverted to the black market.The problem, he says, isn’t just lost tax revenue, it’s public safety.Contraband cigarettes often lack the “self-extinguishing” rings required on legal products and have been linked to fatal house fires, including several in London, Ont..OLDCORN: Canada’s fight against illegal tobacco needs teeth, it’s time to follow the U.S. lead.Staff Sgt. Michael Clarke of the Whitecourt RCMP says illegal cigarettes are showing up more frequently in Alberta communities.On Aug. 7, his detachment carried out their largest-ever seizure, confiscating more than 270,000 contraband cigarettes — worth $67,500 — from a local residence, resulting in two arrests.“It’s becoming more prevalent,” Clarke said.“Probably weekly, we’re finding packages — in vehicles, discarded around garbage cans, in bars. The cost is significantly less, and people don’t realize that money is diverted from essential programs for the province.”While smaller busts may involve individuals trying to exploit a loophole, Clarke says larger seizures are “definitely” tied to organized crime.He says the RCMP works closely with AGLC’s Tobacco Enforcement Unit, with prosecutions handled by federal Crown prosecutors.The economic impact is also felt by local businesses, Clarke notes, as customers turn to untaxed cigarettes instead of retail purchases.“It definitely affects small businesses,” he said.“If people get desperate and try to start selling untaxed cigarettes, there’s always the chance of them losing their business. It just takes them down the rabbit hole.”.'HIGHLY IRRESPONSIBLE': Trudeau Liberals' tobacco, vape tax increase likely to drive illegal market .Barnum has also said Quebec has cut organized crime activity in the contraband tobacco market by 50% through a dedicated enforcement strategy that recovers 90 cents for every dollar spent, including personnel costs.Measures also include steep financial penalties, seizing vehicles used to transport contraband, and constant high-profile enforcement.Alberta has taken steps, increasing fines to up to five times the tax loss on seized cigarettes.However, Barnum argues that broader legislative changes — including vehicle seizure laws and more coordinated national enforcement — are needed.“You can’t continue to raise taxes and clamp down on the legal industry, yet let the illegal industry run wild,” he said.“This is basically a Canadian-made issue. There’s already a roadmap that exists in Quebec to fix it — we just have to use it.”Both Barnum and Clarke stress that public awareness is key. Many buyers, they say, don’t understand how directly their purchases support organized crime.“The more the general public understands that, the more it will make a difference,” Barnum said.“It’s not just a cheap smoke, it’s a billion-dollar organized crime business.”
