A new lawsuit is challenging New York’s cannabis regulations, particularly the third-party marketing ban.
The lawsuit follows what has been termed as New York’s “disastrous rollout” of cannabis rules, which has significantly hindered the industry’s development.
The Cannabis Control Board, addressing these challenges, recently greenlighted new regulations that seem to rectify the issues leading to the court-enforced halt on licensing new dispensaries.
However, the third-party marketing ban remains. Ryan McCall, deputy cannabis practice chair at Tully Rinckey, explained that this ban prompted Leafly, a national cannabis platform, to take legal action. Described as an “OpenTable for cannabis,” Leafly allows users to review products, place orders, and dispensaries to purchase ads.
McCall suggests a possible swift settlement, emphasizing the importance of finding a middle ground. While he doesn’t foresee the lawsuit impeding licensing, he anticipates potential repercussions on cannabis marketing regulations. The new rules are slated for an Oct. 4 introduction, with hopes of resolving the legal contention before this deadline.
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