The slow-moving legalization process in New York has inadvertently opened the doors to a flood of counterfeit cannabis products, posing significant challenges to public health and threatening the newly formed recreational market. The proliferation of imitation cannabis products is a growing concern, with both consumers and industry experts raising alarms about its impact on the legitimate market.
Counterfeiting in the cannabis industry is not a new phenomenon, but it has reached new heights in New York amidst the state’s legalization efforts. The illicit market, which vastly outnumbers licensed dispensaries, has become a breeding ground for counterfeit products. These counterfeit cannabis items range from generic weed packaged in branded packaging to non-psychoactive hemp sprayed with delta-8, a substance found in cannabis that the US Food and Drug Administration warns may be unsafe. Additionally, there are counterfeit vape pens, products with falsified lab results, and state certifications.
Counterfeit products pose significant risks to public health. For instance, counterfeit vape products, which may be crafted with inferior materials, have sparked concerns about lung injuries. In response to a rise in such cases in 2019, the Centers for Disease Control and Prevention issued a recommendation to avoid using vapes, especially from informal sources.
Creating fake packaging is relatively easy, making it difficult for consumers to distinguish between genuine and counterfeit products. With the use of Photoshop and a label printer, anyone can replicate labels that imply the product has undergone state inspection. This has led to confusion among consumers, who may unknowingly purchase counterfeit products, thinking they are shopping in the recreational market.
The number of shops selling cannabis products in New York has skyrocketed, with an estimated 1,400 in operation since at least last summer. In comparison, there are currently only two licensed adult-use retail dispensaries. A survey conducted by Brightfield Group, a cannabis industry data firm, revealed that 71% of New York cannabis users believe they bought their weed through the recreational market in 2022, despite the official market launch on December 29.
The burden of educating consumers falls on the Office of Cannabis Management in New York. They plan to launch a public education campaign this spring to clarify the distinction between illicit and legal retailers. However, until then, the influx of counterfeit products continues to overwhelm the legal market, undermining the progress made in the push for legalization.
The presence of counterfeit products not only results in lost legal sales but also tarnishes the reputation of legitimate brands. The poor quality of counterfeit products can damage the trust and credibility that legal operators have been striving to build within their communities. It is a setback for an industry that has long battled against entrenched stereotypes and stigmas.
Experts in the industry suggest that one solution to address the counterfeit problem is to open up borders and allow the legal flow of cannabis between states. This would enable legitimate brands to expand their reach and enter the New York market, reducing the demand for counterfeit products.
The influx of counterfeit cannabis products in New York poses a significant threat to the nascent legal weed market. It not only undermines public health and safety but also hampers the efforts to build a reputable and trusted industry. As New York continues its journey towards a fully legalized market, addressing the issue of counterfeiting will be crucial for its long-term success.
