In a ruling that caused uncertainty in New York’s cannabis industry, a judge initially appeared to invalidate all regulations regarding recreational marijuana in the state. However, a subsequent amendment to the decision clarified the scope, indicating a narrower impact. The ruling came in response to a lawsuit by Leafly, a cannabis sales website, challenging the state’s restrictions on marijuana dispensaries advertising on third-party platforms.
State Supreme Court Justice Kevin Bryant initially deemed the state’s rules as arbitrary and unconstitutional, seemingly nullifying the entire regulatory framework. The amendment later clarified that only rules related to advertising on third-party platforms were overturned. Despite this, initial reports had already spread, misinterpreting the ruling, causing an uproar among stakeholders.
State Senator Jeremy Cooney criticized the decision, noting the setbacks faced by New York’s adult-use cannabis market since its legalization three years ago. The state’s Office of Cannabis Management is reviewing the corrected ruling to understand the initial error.
New York’s rollout of legalized marijuana has been marred by a slow licensing process, legal challenges, illicit shops, and insufficient regulatory enforcement. Licensed sellers have been scarce, leading to difficulties for marijuana farmers. Simultaneously, efforts are ongoing to crack down on illegal shops throughout the state, particularly in New York City.
Leafly, the California-based company that initiated the lawsuit, expressed its intent to support New York’s cannabis consumers and businesses amidst the ruling. Emphasizing the importance of consumer choice and access to information, Leafly highlighted the significance of advertising and marketing tools for licensed retailers in a competitive market.