Legal

Leafly Lawsuit Latest in New York Cannabis Rollout

Platform Takes Legal Action as Empire State Weed Industry Faces Regulatory Roadblocks.

Published

1 year ago

September 19, 2023

Thaddeus Flint

State’s ban on third-party marketing has become a contentious issue.

Leafly has taken legal action against New York’s cannabis regulators due to the state’s ban on third-party marketing. The ban has been in place since the inception of New York’s cannabis industry but has become a contentious issue as the industry evolves.

A lawsuit filed in Albany County state Supreme Court reveals a timeline of challenges and disputes surrounding the rollout of cannabis regulations in New York, reports Spectrum News, which has hindered the industry’s growth. While the Cannabis Control Board recently approved new regulations to address some of these concerns, the ban on third-party marketing remains intact.

Leafly’s legal action is driven by the developing landscape of the cannabis industry in New York. Leafly positions itself as a platform akin to third-party services in other industries, such as OpenTable for restaurants, enabling users to access information, place orders, and engage in advertising related to cannabis products and services.

As the new regulations are scheduled to come into effect on October 4, there is potential for a swift resolution to this legal battle. Insiders anticipate that the outcome could influence marketing rules within the industry, though it may not significantly impact licensing processes.

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