Weedmaps has responded to the California Bureau of Cannabis Control’s cease-and-desist request to stop advertising unlicensed dispensaries in their cannabis dispensary mapping site, the Sacramento Bee reports. In a letter to the agency, Weedmaps says its advertisers “represent and warrant that they are in compliance with local law” and that those individual companies are responsible, rather than Weedmaps.
Weedmaps also argues that many of the unlicensed businesses are protected under state law until next January because they are cannabis cooperatives and the state’s old medical cannabis laws allows such non-profit entities until the new law’s sunset clause takes effect. In the letter, Weedmaps argues that these businesses would likely seek licenses but the “regulatory landscape is so blurry it stifles investment.” According to the report, about 85 percent of the Golden State does not allow recreational cannabis sales due to local bans on the industry.
California cannabis regulators argued that by allowing unlicensed companies to advertise on the site, Weedmaps is “engaging in activity that violates state cannabis laws.” Sacramento cannabis policy chief Joe Devlin argued that the groups advertising on the site are not nonprofit, evidenced by the fact that they are advertising on the site.
Following the letter to Weedmaps, BCC spokesman Alex Traverso told the Orange County Register that there was “no immediate action planned” against the company.
Get daily cannabis business news updates. Subscribe