NYC Weed Sector Takes Hit When State Rolls Up With Cease And Desists

NEW YORK CITY — New York City's burgeoning — but still legally hazy — marijuana sector took a hit this week after 17 storefronts and trucks got slapped with cease and desist letters.

All those businesses are accused of selling cannabis without a license — a big no-no even after New York legalized weed last year, according to the letters sent from the state's new Office of Cannabis Management.

Altogether, the state's new marijuana regulators sent cease and desist letters to 52 businesses they claimed are masquerading as legal cannabis dispensaries.

Seven Brooklyn businesses received letters, along with six in Manhattan, two in The Bronx and two in Queens, according to records.

“There are no businesses currently licensed to sell adult-use cannabis in New York State," said Tremaine Wright, chair of New York's Cannabis Control Board, in a statement.

New Yorkers at this point can be forgiven a bit of... confusion.

Yes, weed is legal under the state's Marijuana Regulation and Taxation Act passed in 2021.

But state officials have yet to set up regulations on sales, meaning all the storefronts, bodegas, galleries and converted food trucks selling or "gifting" marijuana strains are still operating illegally, according to the Office of Cannabis Management.

The sticky issue here is that New York City's policy is — cough — a bit relaxed when it comes to cracking down on marijuana. Some enterprising weed entrepreneurs have decided to take a gamble and become even more public, in the time between legalization and when the state finalizes rules for adult-use sales.

And it appears New York City authorities aren't exactly fired up over cracking down on pot shops — again, just 17 out of 52 businesses that received letters are in the Big Apple.

Those include a Weed World location near Times Square, according to letters.

The letter — like the others — tells Weed World owners that their failure to cease will put their ability to obtain a license in the legal cannabis market at "substantial risk."

"Unlicensed sales undermine the legal market that is being built by introducing products that are not lab-tested and potentially threaten public health and safety," the letter states.

"Illegal sales include the sale of cannabis products in-person at a retail location, online, via delivery, or at an event; and include so-called “gifting” where consumers purchase non-cannabis items or services, such as a membership in a club, and are then provided cannabis as part of the sale."

Other businesses that received notices include Freaky Dog smoke shop in Sunset Park and Empire Cannabis Clubs locations on the Lower East Side and Chelsea.

The letters can be read here and here.

Related coverage:

Legal NYC Marijuana Remains Sticky Issue Months After Bill Passes