As cannabis legalization spreads across the country, you might be seeing cannabis dispensaries popping up in your area. Believe it or not, when a state legalizes, some see this as an opportunity to open up a shop without going through the legal process.
A prime example of this practice is in New York, where there are dozens, if not hundreds, of illicit cannabis dispensaries that aren’t licensed or regulated. These shops are still selling cannabis products, but they may products from the illicit market, with off-brand products that aren’t tested for quality and safety.
Some states have laws on the books that punish purchasing cannabis products from unregulated dispensaries. But how are you supposed to know as a consumer?
Here are some tips for spotting a shady operation so you don’t buy a product you may regret.
What Do You See from the Outside?
Most, if not all states restrict cannabis businesses from displaying products publicly. In many cases you can’t even see into the waiting room.
If you are walking past a dispensary and you see product in the window, that should put up a red flag in your mind. If the front door is wide-open, and you can see directly into the retail shopping area, that’s another.
How Did You Get In?
If you’re walking into any legal cannabis dispensary, the first thing you will do is hand over your ID. Some states like Colorado require ID to be checked a second time once you reach the retail counter.
If you are able to walk into a shop and right up to the counter without anyone checking your ID, it’s likely an illicit operation.
What's the Packaging Look Like?
Anybody can go online and find name brand packaging for cannabis products. However there are ways to tell when it is not authentic.
For starters, any product that uses name brand logos from non-cannabis companies (i.e. Skittles, Doritos, Sour Patch Kids, etc.) is fake. If a legal cannabis business can get sued for slightly altering the Skittles name, you can believe that these knock-off products are not legit.
But what if the packaging looks like it is from a reputable brand? Unfortunately the packaging for larger cannabis brands can also be found online, which can make it more difficult to figure out.
However, every state has specific regulations around labeling on cannabis products, including the packaging. Depending on your state, a variety of information must be included, such as potency, manufacturing date, expiration date, cannabinoid and terpene content, and more.
Fake packaging, while it may look like the real thing, will almost always be missing this information. If you pick up a product, look at the back of the package and it’s blank, it’s probably fake.
Some authentic brands now include authentication barcodes on packaging that you can scan to make sure the product is the real deal.
How Did You Pay?
It may seem obvious, but if a dispensary allows you to pay via Venmo or CashApp, it’s probably not a legal business.
Legal cannabis businesses will typically only accept cash, with many now offering payment via debit. Major credit cards like Visa and Mastercard ban cannabis-related transactions, so be wary of any shop that says you can pay with a credit card as well.
Additionally, most states levy heavy taxes on cannabis purchases. In Colorado, there is a 15% sales tax on cannabis products, which can surpass 20% when including local taxes.
If you don’t see any tax on your receipt, or don’t receive a receipt at all, that should set off the alarm bells. If you’re used to shopping the illicit market (i.e. the black market), not getting a receipt might not seem like a big deal. But it’s a tell tale sign that the operation is not legal.
Every state’s cannabis laws are different. Knowing how your state operates is the best way to understand what you should expect when shopping for cannabis.
