New Jersey has taken a stand against cannabis companies for violating patient-first laws
Big fines from the tiny state are a stark example of how regulators should deal with multi-state cannabis companies nationwide.
In April, New Jersey got its start in the race for victory in the Weed Wild East. Three months later, a handful of the state’s pharmacies were curtailed on day one for unauthorized sales they reportedly made outside the gate.
Five Multi-State Operators (MSOs) have failed to follow NJ’s Cannabis Regulatory Commission (CRC) strict guidelines to ensure medical patients never face delays or shortages caused by the state’s expansion of sales for medical purposes for sale to adults.
The fines were imposed in late May after the CRC found nearly 3,200 products were sold to non-medical shoppers during patient hours between April 21 and 29. Some of the fined companies said their medical patients had already stocked up on offers ahead of the 420th holiday, so they had no interest in participating in the first day of adult product sales on April 21.
“Due to sales and events prior to the early days of adult product sales, a large number of our medical patients had stocked up on products prior to the 21st, resulting in virtually no queues at our facility at the time.”
Curaleaf spokeswoman Stephanie Cunha
There were no reports of patient access disruptions nationwide, as few patients showed up in the early days of the new NJ cannabis market. But it’s the principle of the matter for the NJ cannabis board of directors.
The CRC is fighting initial concerns about NJ’s ability to lead legalization in the tri-state area ahead of large neighboring markets like New York City and Philadelphia. Many of New Jersey’s first pharmacies are strategically located outside of these huge metropolitan areas, which helped them bring in $24 million in their first month of sales (April 21-May 21).
The fines add up to a slap in the face for the national giants. But the quick discipline is a powerful example for states near and far. Lawmakers and regulators across the country need to work harder to prevent MSOs from taking advantage of local and medical communities.
Here’s who was fined and how much
The five companies fined include: Acreage Holdings Inc., Ascend Wellness Holdings Inc., Curaleaf Holdings Inc., Green Thumb Industries Inc., and Verano Holdings Corp. These are some of the most far-reaching companies in the entire industry. You can view the full Action Notice on the CRC website here.
The five companies have accumulated fines totaling $350,000 ($10,000 per infraction per day).
Acreage was charged $60,000 while Ascend’s ticket was $80,000. Curaleaf’s grand total was $50,000, another $80,000 was reported by Green Thumb (GTI), and Verano’s high score was $90,000.
Curaleaf claimed responsibility in a statement, saying the company “acknowledges responsibility for these subpoenas and has paid our fines to the state.” In the early days of adult sales in New Jersey, we responded to overwhelming lines and demand at our adult-use facility,” the statement said.
Despite the misstep, Curaleaf insists its pharmacies “deliver on our promise of providing two set hours each day to the medical community at each of our locations.”
Acreage said the violations were caused by its employees’ intense attention to customers. “Our associates take the extra time and care to ensure that each guest’s questions are answered and their needs met when they visit our stores,” said Sharon Ali, regional general manager for Acreage Mid-Atlantic. “Staff’s attentiveness resulted in some adult customers staying in store for a limited time after our special patient-only hours began,” Ali said.
The other pharmacies that were fined did not comment on the violations.
Why it’s important to make an example of MSOs
CRC Executive Director Jeff Brown wrote that the actions of the fined companies were detrimental to the state’s patient population. Even if zero medical patients gave up weed for exceeding medical hours, these companies’ slippage would have set a dangerous precedent for the future of NJ’s cannabis industry.
Law enforcement continues to conduct raids and jail unlicensed operators. And NJ lawmakers like Nick Scutari are cracking down on basic rights like home-growing laws. Scutari and others claim that home growing is driving the illicit market. But in reality, they can help protect patients and customers from unfair prices and questionable quality.
Fully vertical MSOs, including the five fined, are already enjoying a head start over local operators. Meanwhile, locals and social justice applicants are waiting for the green light to open their businesses.
Is it really socially fair that these giant corporations get away with a fiscal slap in the face when longtime growers, sellers and customers are still navigating prohibition laws that could result in their being unlicensed or jailed?
Almost every state that has legalized cannabis wrestles with big questions about the right course of action. According to Leafly’s Seeds of Change report and other analyses, most lawmakers and regulators just barely get a pass mark.
More stories from The Ganja State
Examples of what happens when states give corporations free rein
Government-licensed laboratories and distributors have largely taken advantage of the false sense of security they purport to bring to the industry. Recent studies and reports have shown that fraudulent labeling, price fixing, extortion and more are rampant in the limited-license cannabis markets.
Here are some examples of corporate corruption and questionable social justice practices that have made headlines recently:
Arkansas
- Three medical marijuana patients submitted federal civil suit against the Steep Hill, Arkansas testing lab for overrepresenting the THC content of products from breeders Bold Team, Natural State Medicinals and Osage Creek Cultivation. The lawsuit alleges the four companies violated the Racketeer Influenced and Corrupt Organizations (RICO) Act and seeks damages for the three patients, ‘and anyone else in a similar position.’
Connecticut
- Twitter and Reddit users both called on Connecticut’s cannabis regulators to be more transparent about how they selected the 16 social justice applicants recently announced for cultivation licenses. But lawmakers appear to be more concerned about the shutdown harmless practice of gift-giving across the state.
Florida
- Florida continues to allow companies to siphon profits from its medical cannabis patients while allowing local growers and vendors looking to enter the industry to take the lead. Last year, Leafly reports Of Florida’s 22 legal licenses, only one is held by a black or brown owner. The state’s only minority-controlled license is held by MSO Cookies, which originated on the west coast.
new York
- As non-state corporations Obtaining approval for expansion into New York, city and state officials give mixed news to cannabis users and gray market operators. While the mayor wants New Yorkers to keep smoking at world-leading rates, long-established sellers are being harassed by the State Senate and Bureau of Cannabis Management. How can officials claim to be working with legacy operators on social justice while threatening to keep selling cannabis?
Massachusetts
- In 2021, a promising young mayor was found guilty after demanding bribes in exchange for cannabis licenses. but Reports suggest so that the corruption in MA’s licensing program runs far deeper than this single incident.
Pennsylvania
- Price gouging by medical cannabis suppliers was called out by the Cannabis Business Hours in March after it was revealed providers weren’t passing the savings across the board to patients. While the wholesale price of dried flowers fell 37.6%, retail prices fell just 10.1%.
Defining and delivering social justice in cannabis
Governments say they will tax and regulate the plant with control from seed to sale. But do they ever plan to police cannabis corporations as harshly as they have policed unlicensed cannabis breeders, sellers, or the plant itself?
As more states legalize, regulators should take more action against the vultures that are circling the industry than against the grassroots consumers and providers who have planted and cultivated this burgeoning industry. The short history of legal cannabis in the US has shown that licensed companies are no more trustworthy than the shady dealers that DARE commercials used to warn kids about.
New Jersey supervisors don’t need a slap on the back to do the jobs they signed up for. But neighboring states could use a nudge and a scratchpad to examine how the little Garden State has held its own from day one with those massive MSOs.
More stories from the Weed Wild East
Christopher Minaya
Christopher Minaya has written for XXL, Hot 97, In Flex We Trust and more. He covers East Coast cannabis trends to make the flower more humane.
Check out Christopher Minaya’s articles
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