Audit Reveals three,000 Illegal Cannabis Enterprises in California — Cannabis Law Group’s Health-related Marijuana Legal Weblog — October five, 2019


The black marketplace for marijuana in California is 3 occasions the size of the legal marketplace, a current audit has shown. The findings, produced public in September, highlight the state’s ongoing battle to curb its illegal cannabis trade.

Roughly two,835 unlicensed dispensaries have been listed as trading across California, according to the audit carried out by the United Cannabis Company Association (UCBA), a trade association representing a wide wide variety of licensed marijuana firms. Interestingly, the Bureau of Cannabis Handle has only licensed 873 cannabis merchants to operate lawfully inside the Golden State.

These comparative statistics reflect the continued hiccups California has faced given that rolling out updated legal regulations starting in 2018, which have been intended to level the cannabis market’s playing field.

If you have to have aid registering a cannabis company or initiating proceedings against an illegal marijuana dispensary, our Los Angeles marijuana company attorneys are right here for you.

A Contact for Authorities to do Far more
A lot of licensed cannabis company owners have criticized state lawmakers and law enforcement agencies for their inability to stamp out illegal marijuana operations. The challenge is particularly contentious with licensed pot shop owners, as illegal outfits can afford to sell cannabis merchandise at a heavy discount and considerably reduce into the marketplace share, given that these devoid of licenses skip paying regulation fees, as properly as neighborhood and state taxes.

This year alone, it is estimated the illegal pot marketplace will create roughly $eight.7 billion in unregulated cannabis sales, even though legal trading is anticipated to create just $three.1 billion in sales by licensed and registered marijuana firms.

Weedmaps – Well known and Polarizing
The UCBA carried out its audit applying the Weedmaps web page, which is also prickly mainly because the internet site lists all cannabis dispensaries and merchandise inside a neighborhood location, regardless of no matter if these company operators are genuine or not. In order to collect a sense of just how several illegal corporations have been marketing on Weedmaps, UCBA auditors compiled a database of all California-primarily based marijuana dispensary or delivery solutions listed on Weedmaps. That search turned up three,757 cannabis company listings, which could not even encompass all industrial pot outfits as there are probably other individuals who do not promote, and however this total is nonetheless far higher than the quantity of the state’s registered cannabis firms, which the BCC reports as 873 in total.

Dear Gov. Newsom

This information was then incorporated by the UCBA in a letter addressed to Gov. Gavin Newsom, exactly where the agency urged the state to clamp down on Weedmaps, who several business stakeholders think is at fault for enabling illegal sellers to promote on its internet site.

The UCBA also referred to as for the state of California to retroactively impose millions of dollars in fines on Weedmaps, below Assembly Bill 97, which enables for the issuing of up to $30,000 a day in fines to all marijuana primarily based corporations operating devoid of a license.

Weedmaps Ultimately Actions Up
The Beaurea for Cannabis Handle (BCC) also issued Weedmaps with a cease-and-desist letter in 2018, calling for the web page to sever ties with unlicensed cannabis firms. Immediately after initially arguing that it was protected below Section 230 of the 1996 Communications Decency Act, and free of charge from duty for content material posted by its customers, Weedmaps has come about. Just final month, the business announced it would now demand new advertisers to present each a state identification and cannabis company license quantity prior to advertisers could market thier firms and/or merchandise on the web page.

Legal Implications
Illegal pot firms do not seem to be going away, and critics inside the business would like to see far more getting completed to make trading far more hard for these undertaking so devoid of a license. But even with efforts getting produced from corporations like Weedmaps, now only functioning with licensed marijuana firms, far more wants to be completed.

The black marketplace for pot is unlikely to subside till licensing possibilities are produced far more very easily accessible, and a higher quantity of neighborhood communities let legal cannabis retailers to operate inside their city limits.

A further ongoing challenge is there’s small incentive for cannabis company owners to get licensed when permits are extremely pricey and licensing specifications are rather burdensome. With these ongoing obstacles, several pot company owners are speedy to see, it is a lot a lot easier, far far more expense productive and significantly far more lucrative, to run a bootleg cannabis outfit than it is to run a genuine 1. With no speedy and effortless fixes in internet site, all of these concerns will have to have to continue to be addressed as time marches on.

About Cannabis Law Group
The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary corporations, sufferers and these facing criminal marijuana charges. Contact us at 714-937-2050.

Added Sources:
Assembly Bill – No. 97
United Cannabis Company Association
Bureau of Cannabis Handle


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