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Despite City Efforts, Hemp Shops Posing as Dispensaries Prevail in Las Vegas

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Even as the legal cannabis industry has grown to unparalleled proportions across the United States in the last decade and beyond, it hasn’t stopped the illicit market from pressing forward in tandem. Of course, there are plenty of individual dealers who dish out cannabis, but some operations are much more overt in their efforts.

One of which resides in Las Vegas, Nevada. Voters legalized a ballot initiative to legalize recreational cannabis in 2016, and purchase, possession and consumption became legal as of Jan. 1, 2017. Sin City has since witnessed numerous dispensaries pop up in the years since, including The Plug.

From the outside, it looks just like another weed store you’d find in the city with big green pot leaves covering the doors, signs displaying pipes filled with cannabis and shelves full of what appear to be cannabis products. However, according to an SFGate report, there’s more than meets the eye when it comes to The Plug.

One indication that The Plug isn’t your standard cannabis shop is its 1.2 star rating on Google Maps. It could be because The Plug is actually a hemp store that is allegedly tricking tourists into buying products marketed as “cannabis” that won’t actually get them high or offer psychoactive effects.

According to the report, The Plug and stores like it only sell hemp, which is federally required to contain no more than 0.3% THC by dry weight. While some hemp-derived THC products still have the ability to elicit a high in consumers, it doesn’t appear that The Plug’s products contain psychoactive amounts of THC.

It’s also evident that something is awry when you look at the location of The Plug. Located right on the Las Vegas strip, it’s a red flag that the products inside are not actually cannabis, as legal dispensaries are not allowed to be open within 1,500 feet of a casino.

And it appears that consumers are catching on, based on The Plug’s Google reviews. Among the most common words and phrases included in reviews are “scam,” “tourist trap,” “false advertising” and “rip off.” One question included about the business asked if the shop had been shut down yet, which prompted another user reply relaying that it was still open but “should definitely be cited for deceptive business practices. Very misleading marketing and product packaging.”

Scrolling through, there are abundant one star reviews complete with livid customers warning others about being ripped off. One of the few recent five-star reviewers noted that they were already aware that the store sold hemp products before coming in.

Las Vegas appears to be aware of the issue, having passed a law last year requiring stores to display signs saying they’re not licensed to sell cannabis and requiring products to be labeled with THC potencies.

The city website even shared a blog last year explaining how to spot fake dispensaries, noting the 1,500-foot rule for dispensaries and casinos.

It also encourages consumers to look at signage, specifically reading that “ALL HEMP PRODUCTS CONTAIN LESS THAN THE LEGAL LIMIT OF THC” and “THIS LOCATION IS NOT LICENSED TO SELL CANNABIS,” per the 2023 laws. It doesn’t seem that the signage requirement has fixed the problem, as The Plug has continued to receive negative reviews citing deception well after the legislation passed.

The blog adds that the new laws require adequate labeling and testing so hemp-derived products are not confused with cannabis.

The blog also recommends that those in doubt visit the Cannabis Compliance Board’s website, which maintains a list of state-licensed dispensaries and their addresses.

Since the Strip is outside of city limits in Clark County, The Plug and other stores in the area fall outside of Las Vegas’ jurisdiction, according to city spokesperson Jace Radke. However, Clark County spokesperson Erik Pappe said that the county regularly checks hemp stores for compliance and conducts investigations when they receive complaints.

Those who stumble upon suspicious shops are encouraged to submit complaints to the Clark County tip line.

The store has yet to return SFGate’s request for comment.