New York State Continues to Increase Enforcement Efforts Against Unlicensed Cannabis Operators
New York’s Office of Cannabis Management (“OCM”) appears to be getting more serious about enforcing its rules as it gets pressure from the governor and state legislature to open the gates to the adult-use market. In addition to cracking down on unlicensed shops, OCM will be investigating and verifying the true parties of interest (TPIs) and the relationships between TPIs and licensees. There are a number of factors they’ll likely look at, and interestingly, compliance with packaging and labeling regulations – as well as with marketing and advertising regulations – will be important factors.
While there are a number of issues plaguing the NYS market, signs are pointing to a shift in the market later this year or early next year when OCM issues more licenses and allows the legal market to fully open. While packaging, labeling, and advertising/marketing regulations are often a bit overlooked in the early stages, as people wrap their heads around the full regulatory scheme, these standards and rules become far more important once businesses start opening their doors and regulated products start hitting the market in a big way. It’s crucial that products be packaged safely, with child-resistant features, label design that doesn’t appeal to young people, and accurate information about the product inside. Similarly, it’s just as important to ensure that outdoor advertisements and signage, and advertisements in other places (such as print, online, and radio) are not directly appealing to children or designed in a way that would be misleading or attractive to people under 21.
Although the notion of what’s “attractive to someone under 21” is a bit of a slippery concept, New York’s regulations are more comprehensive than most states on this point and provide quite a bit of guidance on what is and is not permitted. If you or your company needs assistance with ensuring compliance with Parts 128 and 129 of New York State’s cannabis rules governing advertising and packaging, please contact Holon Law Partners for a consultation.
More information on NYS’s compliance enforcement plans here: https://www.greenmarketreport.com/new-york-ocm-to-start-investigating-cannabis-company-true-parties-of-interest/
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