The race for the two-click purchase of cannabis is getting hot

The battle for the cannabis industry 2.0 is heating up. If you follow Cannabis.net and read the viral article Apple Just Changed the Marijuana Industry Forever, you know that Apple’s decision to buy cannabis on the App Store is a game changer. The news broke and within a week Weedmaps had orders on their app and cannabis technology and delivery company EAZE bought an MSO. Yes, a tech company bought an MSO! Now Leafly, soon to go public with a value of $ 300 million, is battling for place in the cannabis order race within an echo system. Florida’s recent pot pre-order ban will not go unchallenged as Leafly has taken the state to justice for the state’s ban being backed by an invalid law.

Leafly claims that state law prohibiting operators from obtaining services directly related to the cultivation, processing, and distribution of marijuana was never approved or passed, so the ban is illegal.

Leafly Holdings files lawsuit

This is a well-known e-commerce company with over 10 million active users nationwide. It connects customers to everything cannabis related. On their shopping page, visitors can search for the nearest medical marijuana dispensary in their area. They also provide information about the cannabis products available that can be found in these cannabis stores. They act as intermediaries between the pharmacies and the customers. Sites like Leafly allow patients to make their purchases online and then pick up the goods at local stores near them.

The Seattle-based company challenged the state ban by stating that the activities of third-party operators had nothing to do with the cultivation, processing, or marketing of cannabis products. Leafly claims it has never issued products on behalf of licensed medical marijuana operators in the state.

In the petition submitted, the brand’s attorney Seann Frazier stated clearly that Leafly does not manufacture, own, transfer, distribute, or sell medical marijuana in any of the states in which it operates. Frazier argued that the company was not involved in activities related to marijuana handling from the operator to the customer.

Frazier went on to add that the policy announced by Coppola in February has effectively paralyzed Leafly’s Florida business. Any form of income Leafly could generate from providing services in Florida has been banned.

Frazier emphasized that Leafly does not dispense medical marijuana to registered patients and that the company has never provided services directly related to the growth and processing of marijuana delivery devices in Florida.

The petition filed by the company is asking an administrative judge to determine whether the Florida Department of Health has imposed an invalid rule on the state’s cannabis e-commerce industry. The company is also demanding that the court rule if the online services Leafly provides violate previously approved laws of the state.

What that means for the industry

The ban imposed by Florida health officials has prevented medical marijuana store owners from processing patient pre-orders using the services of third-party sites like Leafly and others.

Prior to the ban, licensed medical marijuana operators in Florida relied on popular cannabis e-commerce brands such as Leafly and Jane to provide a convenient and enjoyable online shopping experience for registered cannabis patients in the state.

Leafly and Jane have well-designed websites that allow customers to browse the available inventory at cannabis stores and pharmacies across the state. The patient browses the stores, selects items to place in the online shopping carts provided, and places the orders. However, patients have to go to the pharmacy to receive and pay for their orders in person.

Once the orders are placed, the e-commerce sites send the necessary information to the operators of medical marijuana stores. The stores are required to fulfill the orders and notify the site sellers when all orders are complete.

All marijuana operators have existing contracts with Leafly and Jane. quit

Ecommerce sites have lost huge revenue since contracts with marijuana operators in Florida were canceled. The operators cannot be blamed, because the Ministry of Health also threatened sanctions against businesses that did not terminate contracts with these locations. As of February 1, marijuana operators in the state have had to find alternative methods to replace Leafly and others’ pre-order services.

In the memo released in February, Health Department chief of staff Courtney Coppola wrote that the state’s medical marijuana bureau had received several complaints about the pre-order services being used by registered patients and their caregivers.

Coppola is currently Deputy Chief of Staff to Governor Ron Desantis.

Coppola warned that all operators are prohibited from using the services of leafly or any other third-party website to dispense marijuana or marijuana delivery devices.

Any medical marijuana operator who violates the ban risks a fine of approximately $ 5,000 per violation. That threat was supposed to deter operators from working with the cannabis e-commerce brands, and it worked.

Is the petition rejected?

The Florida Department of Health has reportedly filed a motion to dismiss the contesting application. The agency also asked administrative judge Susanne Van Wyk to issue an order that would prevent Leafly from accessing certain documents related to the application being filed.

The state argued that the involvement of third-party e-commerce brands in pre-orders was against Florida law, which states that patient confidentiality must be protected by all parties involved. Use of the services of websites like Leafly puts confidential and personal information of patients at risk. This information includes the names, dates of birth, and ID numbers that should always be included in the medical marijuana registry.

The department’s general counsel, Loiuse Wilhite-St Laurent, also mentioned that Leafly does not need to challenge the policy as it does not regulate the company’s operations in any way.

Due to trade secrets contained in the submitted application, an attachment to the application cannot remain accessible to the public. However, for the time being, the Ministry’s request is not yet available on the Administrative Hearing Department’s website.

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Both sides were given time to consolidate their cases as Van Wyk scheduled a hearing in a few weeks.

It will be a win-win situation if Leafly is successful with its petition. Because e-commerce companies like Leafly and Jane save the cost of running medical marijuana treatment centers. Customers are online in a common room and not easy to reach on individual platforms.

Patients will also agree that these marijuana e-commerce sites allow them to easily purchase their cannabis products at affordable prices.

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