Ask any regulated New York cannabis operator what their biggest challenge is, and they’re likely to have the same answer: the illicit market. The thousands of unlicensed weed shops that have emerged since the Empire State legalized adult-use cannabis far outnumber legal stores. Despite increased enforcement, most illicit storefronts remain open. One licensed store is taking things into its own hands, launching an “illegal buyback program.”
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Housing Works, New York City’s first legal cannabis dispensary, announced the initiative last week. From now through September 1, anyone who brings in proof of membership to an unregulated weed retailer will get a free pass to the store’s “co-conspirator program.” The perks include 25 percent off your first purchase and 10 percent off purchases for an entire year.
“This buyback initiative is crucial not only for the health and safety of our customers, which is always our top priority, but also for the legal business operators and those who have fought hard for a place in New York’s legal cannabis market,” Sasha Nutgent, director of retail at Housing Works Cannabis Co., said in an interview with Marijuana Moment.
The battle between legal cannabis companies and illegal shops has intensified in recent weeks as officials try in vain to curb the competition. According to Green Market Report, the issue has spilled over into neighboring New Jersey, where one Trenton operator claims there are nine illicit pot shops in his neighborhood alone.
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The Housing Works buyback program shows how licensed operators can take creative steps to boost business. However, most New York operators argue the problem should be a priority for law enforcement and regulators (not operators themselves), who have so far failed to solve the issue at hand. Without any clear answer to the proliferation of illegal pot in the Big Apple, license holders like Housing Works will likely continue to battle their foes on the front lines
