This week, a New York State Supreme Court in Albany struck down the marijuana advertising regulations issued by New York State's Office of Cannabis Management.
Leafly, which is an online platform that connects consumers with dispensaries, challenged the regulations, arguing that they were both arbitrary and capricious and that they violated the company's rights under the New York State Constitution. Apparently, Leafly's main concern about the regulations was that they limited dispensaries from "paying for marketing or promotion through a third-party platform, marketplace, or aggregator that lists cannabis products for sale."
The court agreed with Leafly and held that New York's cannabis advertising regulations were, in fact, arbitrary and capricious. The court wrote, "there is no sound and substantial basis in the record to support [the State's] actions." The court also found that the regulations violated Leafly's free speech rights.
Leafly Holdings v. New York State Office of Cannabis Management, No. 908706-23 (N.Y. Sup. Tc. April 4, 2024).
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