State cannabis regulators on Wednesday proposed scrapping a rule that barred its licensed pot stores from offering price discounts on their marijuana products — which, they argued, put them at a disadvantage with illegal operators.
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Discounted prices on cannabis gummies, oils and other items could be offered to seniors, students, and military veterans, sources said.
That could mean buying two 10-packs of pre-rolled joints for the price of one, among other sales.
A smoke shop not authorized to sell cannabis products advertises gummies and other edible products as authorities step up a crackdown on unlicensed smoke shops June 16, 2023 in New York City
State cannabis regulators on Wednesday proposed scrapping a rule that barred its licensed pot stores from offering sales discounts on its marijuana products.
Cannabis dispensaries could also enroll customers in “loyalty” programs for special deals for the first time under the proposal.
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The restrictions on bargains were initially put in place to address health and safety concerns, said John Kagan, policy director for the state Office of Cannabis Management.
But he heard complaints that the restrictions put licensed cannabis operators at a competitive disadvantage on pricing with the many illegal shops across the city and the state.
It’s time to cut the red tape to grow the green economy, he said.
“These restrictions made it much more difficult for a dispensary to operate like a regular business in the economy,” Kagan said.
“The new rules will allow dispensaries to operate much more efficiently,” he added.
A worker organizes cannabis flowers before the opening of the first legal recreational marijuana dispensary located in the East Village in the Manhattan borough of New York City, U.S., December 29, 2022
Discounted prices on cannabis gummies, oils and other items could be offered to seniors, students, and military veterans, sources said.
Licensed cannabis shops applauded the move.
“This is huge. Lifting the restrictions on discounts is a big deal,” said Osbert Orduna, head of The Cannabis Place, which operates a dispensary and delivery service in Middle Village.
Orduna noted he has a licensed cannabis store in Jersey City, NJ, where he offers discounts on certain products to veterans, senior citizens and students.
“I wasn’t able to do that in New York — until now,” he said.
The proposed rules must receive the public’s input before final approval.
Meanwhile, state regulators also suggested another change: lifting the ban on manufacturers and dispensaries from selling cannabis in packaging with flashy neon colors.
Cannabis dispensaries could also enroll customers in “loyalty” programs for special deals for the first time under the proposal. The ban on bright packaging was initially put in place to prevent weed companies from marketing to underage youths.
But Kagan said there will no longer be a ban on brightly colored packaging, as long as it doesn’t mimic packaging of products marketed to kids, such as candy or cereals.
The agency also loosened the rules on the number of signs that dispensaries can post outside their storefronts.
Currently, no more than two signs can be affixed to a store window to promote a cannabis shop.
That edict will be lifted under the new proposals.
Other signs or sandwich boards can be placed outside a pot shop.
Restrictions were also lifted on billboards, to make it easier for cannabis shops in upstate rural areas to make potential customers aware of their location and existence.
The Office of Cannabis Management is undergoing a major overhaul following a withering state report commissioned by Gov. Kathy Hochul in May.
But the changes are slow going, according to data of a backlog of applications discussed during a Cannabis Control Board meeting Wednesday.
Even so, regulators did report a substantial jump in sales from its licensed cannabis stores following a recent padlocking of illicit shops.
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