Judge Refuses To Stop NYC Crackdown On Illegal Weed Shops, Which Mayor Adams Calls 'Magnets For Violence'

A group of New York City businesses that had their shops shut down as part of the “Operation Padlock to Protect” program lost their case against city officials after a federal judge refused on Thursday to halt the crackdown on unlicensed cannabis sellers, reported Reuters.

NYC authorities undertook efforts to put an end to thousands of unlicensed shops selling cannabis earlier this year after a new law, known as the Smokeout Act, allowed the NY Police Dept (NYPD) and local sheriff's office to close those businesses without a court order on the first inspection. The stores made money from regular sources as well by selling non-cannabis goods.

In June, 27 businesses filed a class-action lawsuit against the city, arguing that the initiative introduced by Mayor Eric Adams in early May violated their constitutional right to due process under the 14th Amendment. The legal action sought an injunction to halt these practices, as reported Benzinga's Rolando García at the time.

Through the program, NYC authorities have closed down at least 640 unlicensed smoke shops over the past couple of months.

U.S. District Judge Paul Oetken in Manhattan said these shops are a public health risk considering the unregulated processing and labeling of the product. He highlighted the "significant risk to minors as a result of their locations and marketing practices.”

Mayor Adams praised Judge Oetken's decision.

“We are protecting New Yorkers, particularly young people, from the health and safety threats being posed by illegal cannabis shops,” Adams said in a statement. “If you are operating an illegal cannabis business, our administration is sending a clear message: You will be shut down.”

Read Also: Licensed But Closed: New York’s Cannabis Dream Faces Bureaucratic Nightmare

Illegal Cannabis Shops In NYC Are ‘Magnets For Violence'

During NY1's "Mornings On 1" on Thursday, Adams called unlicensed cannabis shops "magnets for violence," commenting on a recent successful raid on a disguised cannabis shop.

He discussed the ongoing efforts to combat illegal weed shops in the Big Apple, noting the complexity of the issue.

Meanwhile, during the June reporting period, 113 stores were up and running, the Office of Cannabis Management (OCM) said during its recent meeting, reaching 137 dispensaries in July. Half of these stores are located in NYC's five boroughs while the rest are scattered throughout the state.

Adams said "legal shops are now starting to see their profits increase."

That said, over the first six months of 2024, cannabis dispensaries that legally sell marijuana to New Yorkers have sold $260.6 million worth of product, equaling approximately $43.4 million per month.

More Transparency Of Operation Padlock

While the mayor's remarks resonate with many, members of the City Council want more transparency of the crackdown.

Manhattan councilmember Gale Brewer, who represents Manhattan's Upper West Side is a sponsor of the legislation under which the Adams administration would be obliged to make public quarterly reports about its enforcement activities.

Brewer, who also chairs the Council's Committee on Oversight and Investigations told Spectrum News NY1 political reporter Bobby Cuza on "Inside City Hall" Thursday that eight stores per day are receiving violation notifications resulting in a 60% closure rate. Brewer’s bill also seeks details on the outcomes of each inspection done by the Adams’ administration.

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