Hochul calls on big tech companies to crackdown on illicit weed shops

Gov. Kathy Hochul on Wednesday renewed her calls for major social media platforms to stop promoting illegal cannabis shops in New York state — saying the underground weed market has fundamentally harmed legalized retailers.

“Strengthening New York’s equitable cannabis industry and protecting the hard-working small business owners operating in the legal market are top priorities, and the best way to accomplish those goals is by expediting the shutdown of unlicensed shops,” Hochul said at a Feb. 28 press conference in Midtown, where she was flanked by legal marijuana vendors to announce several steps to further combat illicit weed shops around the state.

“These illicit vendors flagrantly violate our laws by selling to kids, evading our taxes, and engaging in fraudulent advertising about their products,” she added. “Every day that these shops are open, they endanger public health and hurt people like those standing with me here today.”

Among the major proposals Hochul called for on Wednesday was the potential for local police forces to partner with the state’s Office of Cannabis Management to shutter shops found to be selling marijuana without a license.

As of now, only the OCM can conduct raids and close those businesses on marijuana-related violations — but Hochul said local law enforcement should have the same powers.

“Let’s give states and localities ways that they can padlock the doors, number one, and shut down these flagrant violators,” she said. “Let’s start having some teeth. They can appeal their fines. They can appeal their closure. Everybody gets due process. But while that plays out in the courts, they would be shuttered and out of business. The padlock stays on. And they’ll have to factor that into their business model on whether it makes sense for them to continue.”

During her press conference, Hochul singled out big tech companies, which often fail to discern between legalized shops and those operating without a license.

“Right now, they’re allowing the sowing of a lot of confusion in the marketplace. I think the vast majority of customers, we hope, will want to buy safe, tested products from licensed dealers,” she said. “But if you type in cannabis dispensaries in Google Maps or Yelp, you’ll get a long list of unlicensed illegal vendors.”

The governor called on platforms that connect customers with businesses, such as Google, to remove listings for underground businesses.

That would both aid customers looking for regulated products, as well as help the 77 currently-operational businesses that are selling regulated cannabis, Hochul noted.

“They’re hurting our legal shops, and we’ve been in touch with these companies, these platforms, and we’ve told them flat out, you need to change this,” she said.