Dropping Off The Map
Contributor: Michael Avalos
Last month, the website Weedmaps announced that it would cease advertising from unlicensed marijuana vendors. Although no timetable was announced for the change, this decision will have a major effect on the budding retail industry.
The site, a Yelp for marijuana retailers, had been resisting a cease-and-desist order from California’s Bureau of Cannabis Control (BCC) by allowing unlicensed dispensaries to advertise on its search platform. Weedmaps rejected that initial order back in February 2018, citing a lack of jurisdiction, leading to a public stalemate that has lasted for months.
Unlicensed marijuana dispensaries are illegal storefronts operating without proper permits. By shirking state regulators and getting maximum exposure on Weedmaps, the outlaws were getting a leg up on their full-compliance competition. Illegal shops are open for more hours than their legal counterparts, with some operating twenty-four hours a day. They also don’t charge the proper state and sales taxes, which allows them to severely undercut the pricing of corporate-owned outfits like MedMen.
But those lower prices come with a higher risk. Illegal shops are more likely to sell unregulated products, which can be dangerous, especially given the breakout of fatalities associated with bootleg vape cartridges. They are also more likely to be targeted by criminals looking to take advantage of a cash-only business that has little legal recourse.
Last month, the website Weedmaps announced that it would cease advertising from unlicensed marijuana vendors. Although no timetable was announced for the change, this decision will have a major effect on the budding retail industry.The site, a Yelp for marijuana retailers, had been resisting a cease-and-desist order from California’s Bureau of Cannabis Control (BCC) by allowing unlicensed dispensaries to advertise on its search platform. Weedmaps rejected that initial order back in February 2018, citing a lack of jurisdiction, leading to a public stalemate that has lasted for months.
Unlicensed marijuana dispensaries are illegal storefronts operating without proper permits. By shirking state regulators and getting maximum exposure on Weedmaps, the outlaws were getting a leg up on their full-compliance competition. Illegal shops are open for more hours than their legal counterparts, with some operating twenty-four hours a day. They also don’t charge the proper state and sales taxes, which allows them to severely undercut the pricing of corporate-owned outfits like MedMen.
But those lower prices come with a higher risk. Illegal shops are more likely to sell unregulated products, which can be dangerous, especially given the breakout of fatalities associated with bootleg vape cartridges. They are also more likely to be targeted by criminals looking to take advantage of a cash-only business that has little legal recourse.
