Retailers Complain Weedmaps is Advertising Illegal Dispensaries Again

Retailers Complain Weedmaps is Advertising Illegal Dispensaries Again
High Times

Weedmaps is under fire for advertising illegal or unlicensed cannabis retailers on its site in California. Several businesses have filed complaints that claim Weedmaps is working with these businesses despite their lack of legal backing. These complaints were filed last month and in May with the California Department of Cannabis Control (DCC) and the U.S. Securities and Exchange Commission (SEC). They claim that Weedmaps is “allowing vast amounts of black market activity through their website, and they know about it but won’t do anything about it.” These illegal businesses have long been an issue in California, and now, businesses are fed up that they are even getting a legal leg up with advertising despite their status. Those upset about it claim that the legal marketplace is being undermined by the massive cannabis advertising and content company. If it is determined that Weedmaps is guilty of this, they could face serious fines, which would be a major blow, since they are traded in the stock exchange, but it’s not clear whether or not they will be found guilty. Four years ago, the company got in trouble for something similar regarding illegal ads, and successfully removed the ads from its website in 2020 before its parent company went public.  The new complaints from this year were filed by Canex Delivery, a Los Angeles-based cannabis company. The company claimed that they initially went to Weedmaps with their concerns, but no action was taken. CEO Jim Damask and Chief Financial Officer Joseph Bitzer provided documents and screenshots to back up these claims once they took legal action, and alleged that the ads promoted the illicit market.  The official SEC complaint reads that their company “suffered significant losses due to Weedmaps – quite possibly into the tens of millions (of dollars).” They also claimed that Weedmaps…

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Source : Retailers Complain Weedmaps is Advertising Illegal Dispensaries Again

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