Portion Of New York Cannabis Marketing Regulations Ruled Null And Void

Leafly’s petition centered on New York’s cannabis marketing regulations

The State of New York Supreme Court in Albany County has dealt a blow to New York’s cannabis regulatory structure. In Leafly Holdings, Inc., et. al v. New York State Office of Cannabis Management, et. al, the Court ruled that “For the foregoing reasons, the petition is granted, and the following sections are hereby declared null and void as arbitrary and capricious; The Third-Party Marketing Ban, Parts 9 N.Y.C.R.R. $$123.10(g)(21) and l24.5(a); the Pricing Ban, 9 N.Y.C.R.R. $124.1(bxsxii) the Third-Parf Order Ban,9 N.Y.C.R.R. $123.10(9)(23); the Third-Party All-Licensee Listing Mandate, 9 N.Y.C.R.R. $12a.lOX2); and the Third-Party Distributor Listing Mandate, 9 N.Y.C.R.R. $12a.1(cXl)-(2)” and that “the aforementioned regulations constitute impermissible restrictions on Petitioners right to free speech and that they are unconstitutionally vague.”

New York Cannabis Regulations Under a Microscope

Leafly’s petition centered on New York’s cannabis marketing regulations that limit the use of third-party platforms to sell cannabis products. At issue, in part, was the rulemaking process and whether the restrictions impermissibly banned lawful commercial speech in violation of Article I, Section 8 of the New York State Constitution. The Court pointed out evidentiary deficiencies in discussing both issues in its ruling.

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