The New York Police Department (“NYPD”) crackdown on unlicensed cannabis sales comes as New York is poised to start awarding Conditional Adult Use Retail Dispensary (“CAURD”) licenses in the coming weeks. The Office of Cannabis Management (“OCM”) has stated on numerous occasions that those caught selling cannabis without a CAURD license, or a medical license, may be permanently barred from receiving any form of cannabis license in New York State.
Back in February 2022, officials with the OCM publicly identified fifty-two (52) businesses that have been sent cease-and-desist orders directing the shops to stop all illicit cannabis sales. Several operations have moved to preempt the legalization process through the use of membership or donation models which we previously discussed in detail here. The cease-and-desist letters sent by the OCM noted that the continued illicit sales of marijuana will make the businesses ineligible to receive a cannabis business license from the agency in the future.
“These stores are masquerading as licensed, regulated businesses, but they are nothing of the sort. They aren’t creating opportunity, they are creating confusion – New Yorkers think they’re buying a high-quality, tested product when they aren’t,” said Chris Alexander, executive director of the Office of Cannabis
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