For those companies giving away free samples of cannabis in New York, they may be surprised to learn that what they are doing is illegal.
The head of New York’s state Cannabis Control Board declared that businesses who give away marijuana as a promotion with the purchase of an overpriced item such as a T-shirt or lighter, are breaking the law.
Tremaine Wright, the former state Assembly member who chairs the regulatory body for New York’s newborn marijuana industry, has said, “There is no gray market in New York state. This conduct is not legal and must stop. Individuals who do not cease run the risk of severe financial penalties.”
While he did not explain on what ground “severe financial penalties” could be leveled, Wright said that anyone selling marijuana products in unlicensed dispensaries, pop-up shops, or markets is not licensed, “nor are they selling safe, tested products.”
One business called HempSol CBD had ben offering a “free” eighth of an ounce of marijuana with the purchase of a $65 T-shirt. The owner of the shop claimed the promotional “gift” was legal under the state’s recreational cannabis law.
The law allows for adults to give each other up to three ounces of cannabis without compensation.
HempSol CBD owner Jim Mackenzie said he’s seeking guidance from his attorney.
Jason Klimek, who co-leads law firm Barclay Damon’s cannabis team, had long been skeptical of businesses “gifting.”
“It was fairly predictable that this would be the outcome,” Klimek said. “Paramount is consumer safety, and the chair emphasized that. It was very good for them to say that, because there has been a huge question about this, we get calls almost daily.”
