New York's Cannabis Regulators Can't Catch A Break From Lawsuits, Leafly Is Next On The Docket

Will New York cannabis regulators ever catch a break from lawsuits?

Not in the near future, it seems.

What happened: Large marijuana e-commerce platform Leafly Holdings LFLY 

filed a lawsuit in Albany County state Supreme Court against New York’s Office of Cannabis Management (OCM), reported Spectrum News.

Latest among the mounting lawsuits against NY's cannabis regulators, this one focuses on third-party advertising and marketing services and Leafly's attempt to challenge a ban on it.

"Leafly is a platformer that effectively allows anybody who's interested in cannabis, not just in New York state but throughout the country to be able to look at reviews, sometimes be directed to place orders, you're able to purchase advertising from the individual dispensary, distributor, etc.," said attorney Ryan McCall, deputy cannabis practice chair at Albany-based Tully Rinckey.

Why it matters: The news comes on the heels of New York finally approving new regulations aiming to resolve prior difficulties that led to a halt of new licenses or opening new dispensaries.

See Also: New York's Cannabis Program In Turmoil As Judge Blocks New Dispensary Licenses

According to McCall, if the two parties fail to reach a compromise before the new regulations get underway, the lawsuit should not impact licensing but could affect the marketing segment.

Unlicensed Shops Still Thriving In NYC

Meanwhile, a new report by New York City’s Independent Budget Office projected that there are still some 1,500 unlicensed pot shops, with about $484 million in cannabis products, writes CNBC. If those products were to be sold legally, the Big Apple would earn $19.4 million in much-needed revenue.

State regulators have increased their efforts to crack down on illegal shops by conducting more inspections. “We’re getting to as many as we can,” Daniel Haughney, OCM's enforcement director told CNBC.

What’s next: The new regulations are scheduled for implementation on Oct. 4, so there is a reasonable possibility that Leafly and the OCM can reach a compromise before then. As for illegal shops, law enforcement confirms progress has been made, although there’s still a long way to go.

Benzinga Cannabis Capital Conference

If you are interested in hearing what industry experts have to say about the New York cannabis scene, join us at the biggest marijuana conferences in the world. The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago on September 27-28. Get your tickets today before prices go up and secure a spot at the epicenter of cannabis investment and branding. 

Photo: Benzinga edit with image by EKATERINA BOLOVTSOVA by Pexels