Why it matters: Governor Kathy Hochul is urging social media companies and popular websites to stop running listings for unlicensed cannabis retailers in New York City to protect licensed dispensary owners and prevent the expansion of unlicensed weed shops.
What they are saying: Hochul is calling attention to the proliferation of unlicensed vendors on sites like Google Maps and Yelp, noting that the number of unlicensed shops poses a public health risk and undermines efforts to create opportunities in the regulated cannabis industry for those affected by marijuana prohibition. Licensed dispensary owners, like Osbert Orduña, have expressed concerns about difficulties in reaching customers due to the prevalence of unlicensed shops online.
The big picture: Despite the legalization of recreational marijuana in New York in 2021, the process of opening licensed pot retailers has been slow due to challenges with the application and approval process, court cases, and other delays. The large number of unlicensed weed shops in the state, particularly in New York City, presents a significant challenge to the regulated cannabis industry.
What to watch: Governor Hochul has a proposal before state lawmakers aimed at making it easier to shut down unlicensed cannabis businesses. Social media companies like Yelp, Meta (owner of Facebook and Instagram), and Google have responded to the call to remove listings for unlicensed shops, with Google stating that it bans weed ads in New York and removes listings for unlicensed shops once they have been closed by regulators.
Take: It is essential for social media companies and popular websites to cooperate with state efforts to address the issue of unlicensed cannabis retailers to protect public health and the integrity of the regulated cannabis industry in New York. By removing listings for unlicensed shops, these platforms can help level the playing field for licensed operators and ensure that consumers have access to legitimate and safe cannabis products.
