Connect with us

Business

Weedmaps Ordered to Cease Advertisement with Cannabis Businesses

Published

on

[dropcap class=”kp-dropcap”]T[/dropcap]he California Bureau of Cannabis Control (CBCC) is cracking down on the advertising methods of unlicensed illegal cannabis business in the state. As of Feb. 16, this decision was seen in the form of a cease-and-desist letter that was sent to Weedmaps.com, which is described on its website as “ . . . a community for cannabis consumers to connect with others, locate, review and find menus and information about cannabis businesses, including doctors and dispensaries.”

According to Marijuana Business Daily, the CBCC ordered Weedmaps’ owner, Ghost Management Group, to immediately stop advertisements for unlicensed dispensaries, or else face the threat of “criminal and administrative penalties.” The letter also claimed that Weedmaps was breaking state law by partnering with unlicensed dispensaries that are “offering cannabis and cannabis products for sale.”

The grey cannabis market has long since been an issue in California. Now, it’s a battle between licensed dispensaries who are properly paying their required taxes to the state, against unlicensed dispensaries who do not pay taxes and are able to cut their prices as a result.

The CBCC wasn’t the only organization to send a letter—the city of Sacramento also sent a cease-and-desist letter to Weedmaps regarding its unlicensed dispensary advertisements, in addition to a local newspaper that has been known to allow cannabis advertisements.

Weedmaps is looking at a huge loss as a result. According to CEO of Siva Enterprises, Avis Bulbulyan, the loss is projected to be “easily millions.” “The city of L.A. alone—up until Jan. 1 and to some degree recently—had about 1,300 dispensaries, a couple thousand cultivators, manufacturers, distributors, and that was just the city of L.A.,” Bulbulyan  said. “Now you’re talking about the entire state having less than 2,000 temporary licenses issued.”

Apparently the CBCC sent out more than 900 cease-and-desist orders to various companies associated with cannabis, but Weedmaps was the only online-based cannabis advertising platform.

Prior to the Weedmaps letter going public in mid-February, Leafly announced on Feb. 7 that it would abstain from listing any unlicensed dispensaries or delivery services who operate in California, starting on March 1. Since that announcement, Leafly has already culled 750 California-based businesses listings from its website.

 

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *