Almost 350 smoke shacks in Ontario and Quebec selling illegal cigarettes are pumping $2 billion a year into criminal organizations, according to the Canadian Convenience Stores Association.
"During November we are going on a 25-city tour in Ontario. This is an education tour and it isn't trivial. These shacks are illegal and it isn't a victimless crime," said Michel Gadbois, senior vice-president of the association.
"Ontario has the highest amount of contraband and the government has done the least. The province says that there have been record seizures, but that is just because there is more contraband out there. We know where they are and they aren't decreasing," he said.
"The government needs to sit down and say this is a priority. We have lost 10% of our retailers because of this, but the government is silent. The Ontario government's lack of initiative and strategy fighting the war on contraband is troubling."
Anytime someone can purchase a carton of cigarettes for under $42 it is illegal, Gadbois said.
"The product is so cheap that it is creating a whole new generation of underage smokers. The government needs to stop the overregulation of the product because that is just feeding the contraband market."