New York City officials pledge crackdown on illegal potteries

New York City officials announced this week that they would take new steps to address the city’s growing number of unlicensed cannabis retailers to help launch the regulated recreational marijuana market. At a press conference in Manhattan on Tuesday, New York City Mayor Eric Adams and Manhattan District Attorney Alvin L. Bragg, Jr. said they would also target the landlords of retailers who sell weed without a state license.

The mayor of New York and the lead prosecutor noted that the district attorney’s office had filed complaints against four unlicensed stores selling cannabis in Manhattan. The complaints allege that an NYPD officer observed stores selling cannabis to minors and that the city intends to close the stores because they were illegally selling cannabis and operating without a license.

“The legalization of cannabis was a huge step forward for equality and justice – but we will not take two steps back by letting illegal smoking shops take over this burgeoning market,” Adams said in a statement from the mayor’s office. “Today we are proud to announce that we are taking direct action against four unlicensed smoking shops in the Ninth Circuit, which will complement our efforts with District Attorney Bragg to bring these illegal businesses to justice. We are focused on protecting the health and well-being of New Yorkers and ensuring this burgeoning industry serves those who deserve it most.”

Last month, city leaders vowed to take action against the spate of illegal marijuana dealers who have set up shop in New York City since the state legalized adult-use marijuana last year. In December, New York City Mayor Eric Adams created a pilot interagency task force to address the growing number of unlicensed retailers. The task force, which includes the Sheriff’s Office, the NYPD, the Department of Consumer and Worker Protection, and the Office of Cannabis Management, has identified at least 1,200 unlicensed marijuana stores in the city. An analysis by City Council officials found 11 unlicensed stores selling cannabis within a 10-block radius of the city’s first licensed retailer.

Warnings at 400 smoking shops

In addition to the four complaints against unlicensed stores, Adams and Bragg said prosecutors sent letters to the more than 400 smoking stores in Manhattan, warning them that the city could start eviction proceedings for illegal cannabis sales. The letter specifically informs commercial businesses that the city is prepared to use its powers under the New York Real Estate Act “to require owners and landlords to commence eviction proceedings against commercial tenants engaged in illegal trade or business, and such undertake eviction proceedings if required.” The letter also indicated that the prosecutor’s office would “assume such eviction” within five days of written notification.

“For almost two years we have seen an increase in storefronts across Manhattan selling unlicensed, unregulated and untaxed cannabis products. It’s time to end the operation of unlicensed cannabis dispensaries,” Bragg said. “Just as we cannot allow endless bars and liquor stores to open up on every corner without a license, we cannot allow cannabis to do the same. It is unsafe to sell products that are not properly tested and regulated for dosage, purity and contamination. And it’s certainly not fair to competing companies.”

Mark Sims, the CEO of cannabis investment firm RIV Capital, said in an email that the proliferation of unlicensed businesses is hurting both newly licensed adult-use cannabis retailers and existing medical marijuana businesses, including Etain Health, a chain of New York medical marijuana dispensaries from RIV and called for more action from the state.

“While we commend Mayor Adams’ actions to combat the illicit market – it’s a positive step forward – the problem of illicit smoking shops cannot be isolated or solved,” Sims wrote in an email. “With more than 1,200 illegal stores (twice the number of Starbucks in New York) suspected of dealing in illegal cannabis products, products that have been shown to be unsafe for human health, a more holistic approach must be taken to successfully combat the steady stream of illegal market products.”