New York regulators have issued warnings to more than two dozen businesses that they allege are either illegally selling marijuana without a license or exploiting a “gifting” provision of the state’s cannabis law.
After former Gov. Andrew Cuomo (D) signed an adult-use legalization bill into law last year, adults 21 and older were immediately permitted to possess and publicly consume cannabis, as well as gift marijuana to other adults as long as they weren’t being compensated.
But as regulators work to set up rules to authorize licensed retailers, some businesses are apparently taking advantage of the grey area by offering “free” cannabis gifts to adult consumers who buy other lawful products and services.
New York’s Office of Cannabis Management (OCM) said in a press release on Tuesday that it has sent cease-and-desist letters to more than two dozen companies that are reportedly taking advantage of the gifting provision or otherwise illegally selling cannabis without a license.
Those businesses could lose future licensing opportunities and face fines if they continue the activity, OCM said.
