No, the provincial liquor control boards have enough buying power to negotiate the return of unsold inventory in their contracts. They don’t bear the risk of not selling, so for something like this, they’re contractually allowed to return all the unsold product for a refund (probably out the cost of shipping though).
People generally aren’t sentenced to the maximum penalty for a crime, so it’s not very useful to compare the maximum potential sentence for a charged crime versus the actual sentence received after conviction on another crime. The Indianapolis hit and run carried potential penalties of more than 15 years. This DVD guy will probably get less than 5.