How to tell the difference between Illegal and Legal Cannabis Stores

If you take a walk around New York, it’s likely you’ll come across smoke shops on every block that are currently selling cannabis. However, it is also likely that a lot of them are operating illicitly, meaning they are not licensed by the state to sell cannabis and the products for sale aren’t legal, tested or regulated.  Since the state legalized cannabis in 2021, thousands of these illicit dispensaries have popped up, taking advantage of a gray area within the law that led to a lack of enforcement.

Now, with over 100 legal dispensaries finally open throughout the state, it is possible to buy cannabis at a legal operation, but sometimes deciphering between illicit smoke shops and legal dispensaries can be difficult, especially for new consumers who have never visited a legal dispensary. Illicit operations take advantage of this by posing as legal operations. Some will even tell you they’re licensed if you ask them.

Luckily, there are a few ways to determine whether a dispensary is licensed or not. Here’s some tell-tale signals you should look out for if you’re  unsure if the dispensary you’re in is legitimate.

From the Outside:

1. Can you see cannabis products through the windows? If so, that is a clear sign that the operation is illicit. Licensed dispensaries in New York are not allowed to display their products to the street to prevent theft and the attraction of underaged individuals. If a smoke shop has paraphernalia or cannabis products in their windows, it is not licensed.
2. Does the branding on the outside of the shop have bright colors, cartoon characters or weed leaves on it? This means that it’s not licensed. Legal dispensaries in New York have very strict guidelines for exterior branding so that they do not attract children. Weed leaves and cartoon characters are very specifically not allowed and if a “dispensary” has these on their signage, it’s because they are operating illicitly.
3. Additionally, all legal dispensaries have a state-issued verification tool in the form of a green sticker on the exterior window (usually by the entrance) that provides a QR code to their licensing information. If this sticker is not on the window, it is not a licensed dispensary.
4. Is there a security person checking IDs at the door? If you’re able to walk in without any kind of ID check, it is a tell-tale sign that the smoke shop is not legal. Some illicit operations who try more intentionally to mimic legal operations may have this, which is why there are other signs to look out for, but any “dispensary” that does not check your ID at the door is most certainly not licensed by the state.

On the Inside:

1. Are there brands from other states on the shelves? If you’re seeing cannabis brands from the West Coast, it’s likely that you’re in an illicit smoke shop. Only brands licensed to grow, process and sell in New York are available in legal cannabis dispensaries. Some more national brands have received their licenses in New York, but most legal brands sold at licensed dispensaries are New York grown, processed and manufactured. Be on the lookout for the QR codes on products that will allow you to scan and view the track of the product throughout the New York supply chain, from the farm to the shelf.
2. The Office of Cannabis Management also established universal symbols (pictured below) that indicate a product’s legality and again, provide a QR code so that consumers can see all the licensing and testing information. Now, can illicit dispensaries/brands easily mimic these symbols if they want? Yes. But it’s important to look for these to confirm a product is from New York and completely regulated, while also looking out for other factors indicating that a dispensary is legal.
3. Are there products with packaging that closely resembles popular snacks and candies? Similarly, any legal dispensary will not be selling any products that resemble popular name brand food items (like Oreos, Cheetos, Hershey’s, etc.) as these severely violate the packaging and advertising guidelines for legal products because of their potential to appeal to children. Let’s be honest, they are probably also violating trademark law. If these are being sold, it’s a safe bet that the “dispensary” is not licensed.
4. Does the shop sell other products like snacks, candy, alcohol, tobacco, etc.? It is very common for illicit shops to sell other products alongside cannabis in a sort of “bodega style” set up. This could mean snacks, drinks, groceries, tobacco products, alcohol, etc. If the “dispensary” you are in is doing this, then they are not licensed, especially if they are selling alcohol and/or tobacco alongside cannabis. Legal cannabis dispensaries in New York are permitted to only sell regulated cannabis products (alongside a very specified list of accessories, like bongs, rolling trays, lighters, etc.). At least for the time being, you will not be able to buy legal cannabis and tobacco from the same place.

It may seem like a safe bet that a storefront openly advertising the sale of cannabis is a completely legal operation. Cannabis is legal in New York, right? However, that is not always the case, despite more recent efforts to shutter illicit operations. In addition to this enforcement, ensuring that only legal, tested and regulated products are sold to New Yorkers will also require a certain level of consumer knowledge.

If you’re purchasing cannabis in the state, be sure to refer to this guide and confirm that you're visiting a licensed dispensary. Illicit operators want to take advantage of the novelty of legal cannabis without committing to the process of becoming licensed. Don’t be fooled. Support your local business owner who has likely invested immense time, effort and funding to open their retail operation and provide the community with access to safe and tested products.