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NY clamps down on businesses offering marijuana as a ‘gift’

cannamed by cannamed
February 9, 2022
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NEW YORK (AP) — Whereas New York works on launching a authorized marketplace for leisure marijuana, some entrepreneurs have jumped right into a authorized grey space by saying they are not promoting pot however giving it away whereas folks purchase one thing else.

Now, the state is saying they’ve jumped the gun and must cease.

The Workplace of Hashish Administration mentioned Tuesday it despatched letters to greater than two dozen enterprises it suspects of illegally promoting weed, telling them to cease or face fines, potential legal prices and danger to their prospects of getting a license as soon as they’re out there.


“New York state is constructing a authorized, regulated hashish market that can guarantee merchandise are examined and secure for shoppers” and can present alternatives for folks affected by the enforcement of now-scrapped marijuana legal guidelines, OCM Government Director Chris Alexander mentioned in an announcement. “Unlawful operations undermine our skill to do this.”

The company would not say what entities acquired letters. Messages have been left with a number of companies which have gone public about offering weed in what they’ve maintained is a authorized manner.

Hempsol CBD did not get a letter, proprietor Jim Mackenzie mentioned Wednesday, however his Rochester CBD store nonetheless will cease providing a “present” of marijuana to prospects who purchase a T-shirt or different garment.

Mackenzie mentioned he believed the deal was authorized. The state regulation that legalized leisure marijuana final spring does not focus on such “items” however does enable “transferring, with out compensation” of small quantities of pot.

“However I’ll do what the state needs as a result of my purpose is to have a state (marijuana) license and do it accurately,” mentioned Mackenzie, who feels the state could be wiser to get to know companies like his store, the place he prides himself on educating prospects in regards to the hashish plant.

“It’s actually of their finest curiosity to work with the people who find themselves really making an attempt to do it accurately and really have information on this trade,” he mentioned.

Since March, it has been authorized for adults in New York to own and use small quantities of marijuana and “switch” it at no cost, however the state hasn’t but issued licenses to promote it. The hashish workplace continues to be engaged on guidelines for that.

Within the meantime, some companies began providing the drug as a “present” to individuals who make what’s described as a donation or who purchase artwork or another merchandise. Others say they’re golf equipment that purchase hashish and supply their paying members with entry to it.

To the state hashish workplace, unlawful gross sales “embody so-called ‘gifting’ the place shoppers buy non-cannabis gadgets or companies, comparable to a membership in a membership, and are then supplied hashish as a part of the sale,” in accordance with a pattern warning letter that the company launched. The letter tells recipients to cease “criminality” instantly.

No such letter has arrived at Pleased Munkey, a New York Metropolis-based enterprise that has placed on “deliver your personal” cannabis-themed occasions the place goodie baggage included a joint, spokesperson Stu Zakim mentioned. He says that is not “gifting” tied to a purchase order, however moderately “doing what any sponsor does — present a goodie bag to offer away their product to assist affect folks.”

Whereas the hashish company’s motion may not have an effect on Pleased Munkey, Zakim known as it “offensive and insulting.” He mentioned it will flip established underground sellers off the concept of partaking within the coming authorized market, moderately than persevering with unlicensed, untaxed gross sales.

“Gifting” and different preparations have additionally cropped up, and generally confronted crackdowns, in another states once they legalized marijuana however hadn’t but licensed growers and outlets.

New Jersey issued stop-it-or-else warning letters in June to 4 companies, saying their pot “items” have been actually gross sales. Final week, authorities raided a number of outlets and a warehouse related to a unique enterprise and arrested the homeowners and three different folks, the Bergen County prosecutor’s workplace mentioned.

___ Related Press author Marina Villeneuve contributed from Albany. Comply with the AP’s full marijuana protection: https://apnews.com/Marijuana.



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