New York regulators are cracking down on the grey market which has sprung up since the state legalized REC last year. Throughout the state, shops “gifting” cannabis and similar practices have become rampant, even though the state has not even begun accepting REC business applications.
- This week, the Office of Cannabis Management(OCM) sent more than two dozen businesses statewide, telling them they could face fines and criminal penalties and be locked out of the legal market.
- Attorney David Feder notes, “Who’s to say these operators want a license?” They’re selling tax free cannabis today.
- The letter also warns the landlords of unlicensed operations.
- Attorney Jeffrey Hoffman noted that in at least some cases, the letters seem to be working.
OCM is working on draft REC regulations which are expected in the spring.