Weedmaps About To Deal a Blow To Unlicensed Cannabis Retailers


A regulation agency representing a number of purchasers within the cannabis trade is urging Weedmaps to set a date for its promised crackdown on unlicensed retailers promoting on the web site. Attorneys with the agency Zuber Lawler mentioned in a press launch on Thursday that the transfer by Weedmaps will assist assist California’s authorized cannabis trade and deal a blow to unlicensed operators.

“The choice by Weedmaps to stop carrying adverts for unlicensed cannabis companies is a vital step for wiping out the black market trade that undercuts authorized retailers that play by the foundations,” mentioned Manny Medrano, a Zuber Lawler litigation companion. “It’s essential to carefully monitor this example as a result of regardless of Weedmaps’ announcement, the corporate gives no precise date for making the promised modifications.”

On Wednesday, Weedmaps introduced that “starting later this yr” it is going to require retail advertisers within the U.S. to supply a state license quantity on their listings on the cannabis data platform. Weedmaps CEO Chris Beals mentioned in a press launch that may assist each customers and authorized cannabis companies.

“These enhancements to present safeguards on our platform will assist sufferers and adult-use customers discover cannabis retailers which have supplied proof of state licensure,” Beals mentioned. “It additionally underscores our dedication to working with lawmakers and regulators to foster a flourishing authorized market.”

Weedmaps Dodges Lawsuit

The announcement from Weedmaps adopted months of complaints from licensed cannabis companies that they had been being harmed by Weedmaps’ inclusion of adverts for unlicensed firms. In California, the Bureau of Hashish Management issued a stop and desist letter to Weedmaps over its adverts for unlicensed retailers in February 2018. The next month, Weedmaps replied that it will not adjust to the order, citing protections underneath federal regulation.

Attorneys with Zuber Lawler say that they had been on the verge of submitting a class-action lawsuit in opposition to Weedmaps when the corporate introduced it will cease carrying adverts for unlicensed cannabis enterprise. The go well with on behalf of licensed cannabis companies would have sought injunctive reduction in opposition to Weedmaps underneath Calfornia’s Unfair Competitors Legislation, which prohibits false promoting and unlawful enterprise practices, “on this case the promoting of unlicensed cannabis merchandise by Weedmaps’ numerous digital channels.”

Scott Benson, the CEO of Apex Extractions, a licensed cannabis concentrates producer, instructed Excessive Occasions in an e-mail that the choice by Weedmaps is a constructive improvement for the trade.

“We’re thrilled to see that Weedmaps is placing their assist behind cannabis entrepreneurs who adhere to essential trade legal guidelines each day,” mentioned Benson. “It is a long-overdue transfer for Weedmaps and we hope that different firms will comply with go well with as a result of it is going to profit everybody within the authorized cannabis ecosystem.”

Weedmaps to Assist Social Fairness Entrepreneurs


Weedmaps additionally introduced on Wednesday that it was launching a program to assist social fairness entrepreneurs apply for and safe licenses to function within the authorized cannabis trade. This system will present minority enterprise house owners, who usually face challenges securing licensing and capital, instruments to assist them navigate the regulatory course of.

“For too lengthy, unjust legal guidelines and rules have crippled small-business house owners who need to make an sincere residing and supply protected, authorized cannabis merchandise to medical sufferers and grownup use customers,” mentioned Beals. “We hope to provide a leg as much as entrepreneurs that want and deserve assist.”

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