Albany, NY – In a landmark decision, the New York State Supreme Court in Albany has amended its initial ruling that appeared to upend the state’s cannabis regulations, now narrowly focusing on advertising rules that affect third-party platforms such as Leafly. This clarification comes after confusion spread through the industry when news outlets reported that the court had reversed broad regulatory rules surrounding cannabis.
The court’s narrowed decision specifically invalidates regulations that had prohibited licensed dispensaries from advertising on platforms like Leafly, which offer services that connect consumers with dispensaries. The ruling was a response to arguments that the regulations were vague and infringed on constitutional free speech rights.
Initially, the ruling was perceived to have wider implications, potentially disrupting the entire framework of cannabis regulation in New York. This sparked a flurry of speculation and concern among stakeholders and regulators. However, the subsequent clarification by the court has limited the impact to advertising alone.
The legal challenge was initiated by Leafly, which argued that the advertising restrictions imposed by the New York Office of Cannabis Management (OCM) were unfairly limiting and not supported by a rational basis. Judge Kevin Bryant agreed, noting that the OCM failed to provide a supported rationale for the regulations, rendering them “arbitrary and capricious.”
The state is now tasked with revisiting these advertising regulations. In the meantime, the cannabis industry may experience a change in how dispensaries market their products and services, potentially leading to an increase in partnerships with platforms like Leafly.
Governor Kathy Hochul has acknowledged the rocky rollout of the adult-use cannabis program and has called for an audit to address the various challenges the industry faces, including the competition with an unchecked illicit market.
The OCM, in light of the court’s decision, has expressed its commitment to reviewing the ruling carefully and considering all legal avenues available. The move aims to ensure that the adult-use cannabis program operates within the bounds of the law while promoting a responsible and fair market.
The redefined scope of the ruling provides clarity for the cannabis industry and its marketing practices in New York while underscoring the need for regulators to establish clear, evidence-based policies as the state continues to navigate the complexities of cannabis legalization.
Tags: Legality of Pot in US States, Resources, WEEDLIFE