Hochul stated, “If you type in ‘cannabis dispensaries’ in Google Maps or Yelp, you’ll get a long list of unlicensed illegal vendors.”
Although New York legalized recreational marijuana in 2021, the opening of licensed adult-use cannabis retailers has been slow, with less than 70 shops operating statewide. The complexities of the application process, challenges in securing appropriate storefronts, and legal disputes have contributed to this delay.
While licensed retailers faced obstacles, the number of unlicensed shops, particularly in New York City, surged. Estimates suggest over 1,300 unlicensed pot shops in the city, with more than 400 in Manhattan alone.
Hochul emphasized the public health risks posed by unlicensed shops and their impact on efforts to provide opportunities in the regulated cannabis industry for those historically affected by marijuana prohibition.
The governor acknowledged limited success in closing down unlicensed shops through raids and fines, prompting a proposal to facilitate the closure of unlicensed cannabis businesses. This proposal is pending before state lawmakers.
Hochul called on social media and tech companies to refrain from promoting illegal sites and ensure the promotion of legal shops. Licensed operators face challenges reaching customers due to the proliferation of unlicensed cannabis shops on online platforms, where restrictions limit their promotional activities.
Licensed dispensary owner Osbert Orduña, who has faced Google removing listings for his shops, supported Hochul’s call. In response, Yelp emphasized consumers’ First Amendment rights, stating that information about all businesses, including unlicensed ones, serves the public interest.
Meta, the owner of Facebook and Instagram, reiterated its prohibition of content promoting the buying and selling of drugs, including marijuana. Google expressed its commitment to removing listings for unlicensed shops once confirmed as closed by regulators, citing its ban on cannabis ads in New York.
As New York grapples with the coexistence of licensed and unlicensed cannabis retailers, efforts are underway to protect the legal market and address the challenges posed by unauthorized operators.
Photo by: Cindy Schultz | Reuters
