New York Hemp Retails Allege ‘Unjust Treatment’ in Fresh Lawsuit as State Crackdown Hammers Illicit Market
New York Cannabis Enforcement Sparks Lawsuit from Hemp Retailers.
New York’s Office of Cannabis Management (OCM) has had yet another lawsuit filed against them as the city’s attempted crackdown on illicit cannabis stores continues to receive pushback.
According to Times Union, a group of three hemp retailers issued the lawsuit in Albany’s state Supreme Court, accusing the agency of violating their constitutional rights.
Smoke N Save in Saratoga Springs, Two Strains in Queensbury, and Breckenridge in Manhattan have challenged the state’s recent enforcement actions, which have seen millions of dollars’ worth of cannabinoid products seized during what store owners describe as ‘military-style raids.’
The raids have intensified following new regulations, enacted in December by the state Cannabis Control Board without public consultation or legislative input. These rules restrict the sale of many hemp-derived products that were previously legal, affecting thousands of licensed retailers who have operated under more lenient federal and state laws since New York legalized cannabis in 2021.
The lawsuit argues that OCM and the New York City Sheriff’s Office, also named in the case, have been unjustly treating licensed hemp retailers as if they were selling illicit cannabis products.
The legal action seeks a temporary restraining order to halt these raids, which the OCM refers to as ‘inspections,’ pending a formal hearing.
Store owners allege that these inspections involve a heavy police presence, with officers reportedly turning off surveillance cameras, searching personal belongings, and detaining employees—all without proper warrants or cause.
It comes as ‘Operation Padlock,’ a statewide law enforcement initiative launched to shut down illegal cannabis shops, is hailed as a success by the cities authorities.
The crackdown began in mid-May, and since then the New York City Sheriff’s Joint Compliance Task Force, led by Sheriff Anthony Miranda, conducted inspections of all known illegal cannabis shops, leading to the seizure of over $63 million in illegal products.
The seized goods, which were stored across the NYPD’s evidence warehouses, were incinerated in an environmentally responsible manner, contributing energy back to the community.
Governor Kathy Hochul and other officials have lauded the collaboration between state and city authorities, which has resulted in the closure of over 1,300 unlicensed shops statewide.
Despite some describing the situation as ‘regulatory chaos,’ the crackdown has already begun to help licensed retailers.
According to John Kagia, Director of Policy at the state’s Office of Cannabis Management (OCM), legal cannabis sales in New York reached $529 million by mid-August, just eight months after the first licensed dispensary opened in Manhattan.
Since the crackdown began nearly 40% of the year’s legal cannabis sales have been generated, indicating a direct correlation between the enforcement actions and the growth in legal sales.
Kagia reported that more than two dozen licensed cannabis retailers have seen a 100% increase in sales since the operation started. Many new customers have reported visiting these legal dispensaries after their usual, unlicensed sources were closed by authorities.
Governor Kathy Hochul, a strong advocate for New York’s legal cannabis program, has projected that the state could generate $1.25 billion in tax revenue from the cannabis industry over the next six years.
