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https://nypost.com/2024/04/04/us-news/new-yorks-ban-on-pot-ads-struck-down-as-violation-of-free-speech/amp/
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Metro

NEW YORK’S BAN ON POT ADS STRUCK DOWN AS VIOLATION OF FREE SPEECH

By Carl Campanile

Published April 4, 2024, 8:17 p.m. ET

New York’s struggling legal pot industry has been thrown into turmoil yet again
after a judge issued a ruling striking down state rules banning cannabis
advertising and marketing as a violation of commerce and free speech.

The same Albany judge, Kevin Bryant, last summer struck down other Cannabis
Control Board rules as illegal for providing convicted potheads preference in
obtaining licenses over disabled vets and other applicants.

The legal woes last year froze the licensing and opening of new cannabis shops
for months while the number of unlicensed marijuana shops sprouted across the
city and state like weeds.

3
New York’s legal pot industry suffered another blow after a judge issued a
ruling striking down state rules banning cannabis advertising and marketing as a
violation of commerce and free speech. Lev Radin/Pacific Press/Shutterstock

In a withering 13-page ruling issued Wednesday, Bryant said the Office of
Cannabis Management issued regulations outlawing promotions and marketing on
third-party platforms without evidence backing them up, all but saying the
edicts came out of thin air.

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“There is nothing in the record to establish precisely how OCM developed the
regulations,” Bryant said.

“This court must find that the conclusion was arbitrary and capricious and that
there is no substantial basis in the record to support respondents [OCM’s]
action. The regulations are unconstitutional violations of petitioners’ free
speech rights.”

The ruling tossed out the Third-Party Marketing Ban that also covered the
listing of prices of cannabis products like loose flower, joints and gummies.

Cannabis operators expressed alarm that the ruling appeared to toss out
virtually all of OCM’s rules.

But the judge amended the ruling on Thursday to limit its impact to ones banning
ads.

3
The same Albany judge, Kevin Bryant, last summer struck down other Cannabis
Control Board rules as illegal for providing convicted potheads preference in
obtaining licenses over disabled vets and other applicants. UCG/Universal Images
Group via Getty Images

Seattle-based third-party cannabis promoter Leafly, a licensed cannabis store in
upstate Rensselaer, brought the case.

Stage One dispensary and one of its customers, Rosanna St. John, was also party
to the suit.

The plaintiffs claimed the state OCM barred Stage One from contracting with
Leafly to promote its cannabis products on Leafly’s site.

“We are pleased to hear that the court agreed with our claims and we couldn’t
be more excited to support consumers and licensed retailers in New York with
Leafly’s full suite of products and services,” Leafly said in a statement.

3
The legal woes last year froze the licensing and opening of new cannabis shops
for months while the number of unlicensed marijuana shops sprouted across the
city and state like weeds. Education Images/Universal Images Group via Getty
Images

“We hope this decision ultimately leads to a healthy, stable adult-use market in
the state. It’s impossible to overstate the importance of providing consumers
with choices, and educational information when making purchasing decisions. It
is critically important that licensed-retailers have equal access to important
advertising and marketing tools to help them succeed in a competitive
landscape.”

The Post has reached out to OCM and state Attorney General Letitia James’
office, OCM’s lawyer, for comment.

What do you think? Post a comment.

Gov. Kathy Hochul, who oversees OCM, did not comment Thursday when reporters in
Albany asked her questions about the ruling.

She recently initiated a review and potential overhaul of OCM’s licensing and
management.

Judge Bryant ordered the state to pay for plaintiffs’ legal expenses.

Additional reporting by Vaughn Golden

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