Google and Meta Accused of Advertising Illegal Cannabis Shops
Search engine giant Google and Meta, the company behind the banned social networks Facebook and Instagram in Russia, have been accused of advertising illegal cannabis shops located in New York State. The issue has drawn the attention of the legal cannabis industry, which is now threatening legal action against these tech giants for promoting unlicensed businesses.
Tech Giants Face Fines from the Cannabis Industry
It was discovered that when users search for “cannabis dispensaries” on Google, the search results include a list of unlicensed shops with addresses, website links, phone numbers, and customer reviews. These underground businesses appear indistinguishable from legal ones, making it difficult for users to tell the difference between licensed and illegal dealers.
The service Yelp, which helps users find various businesses, also publishes reviews of illegal cannabis shops on different social networks, including Instagram. This allows unlicensed shops to advertise their products and attract new customers through these platforms.
Legal Cannabis Companies Consider Lawsuit
Leaders of licensed cannabis companies registered in New York have expressed anger at Google and Meta, and are considering filing a lawsuit against them for promoting illegal businesses. So far, representatives of the regulated cannabis industry have sent a letter to New York Governor Kathy Hochul, who has already responded to their concerns.
Hochul stated, “Right now, Google and other companies are knowingly allowing illegal shops to promote unlicensed cannabis products on their platforms. I urge them to stop advertising all illegal cannabis shops.”
New York Plans to Crack Down on Illegal Cannabis Shops
Illegal cannabis shops that have flooded New York reportedly earned about $7 billion last year, while licensed recreational cannabis retailers made only $150 million. To address this imbalance, state authorities plan to tighten regulations against underground businesses.
Officials from the Office of Cannabis Management may soon be allowed to place locks on illegal cannabis shops to quickly shut down their operations. Additionally, the government is proposing to double the fines for refusing to allow inspectors into a shop. Hochul is calling for fines ranging from $8,000 to $40,000 for this violation.
Currently, there are 77 licensed cannabis shops open in New York State, while the number of illegal shops in New York City alone is estimated at 2,000. Alfredo Angueira, co-owner of the ConBud cannabis shop, praised Hochul for her efforts to combat the black market and noted that there are 71 illegal cannabis shops operating within 1,100 feet (335 meters) of his store.