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New York judge scales back order invalidating state's cannabis regulations

Published 04/04/2024, 05:23 PM
Updated 04/04/2024, 08:10 PM
© Reuters. FILE PHOTO: 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. REUTERS/Eduardo Munoz/File Photo

By Diana Novak Jones

(Reuters) - A New York state judge late on Thursday dramatically scaled back his order from the previous day that had invalidated most of the state's cannabis regulations in a case challenging rules for advertising marijuana.

New York Supreme Court Justice Kevin Bryant issued an amended order on Thursday that voided only regulations pertaining to cannabis marketing.

The judge in Albany, New York, on Wednesday had issued a sweeping order that voided a raft of state regulations put forward by the New York Office of Cannabis Management governing the licensing, operation and marketing of cannabis businesses.

The judge on Wednesday had criticized the Office of Cannabis Management and the New York Cannabis Control Board's response to the lawsuit filed by cannabis website Leafly Holdings, saying they presented no evidence or justification to explain how the regulations were developed. The amended order did not change his reasoning for striking down the regulations.

Leafly had sued over rules that barred dispensaries from advertising on third-party platforms.

A spokesperson for the New York Attorney General's office, which defended the regulations in court, directed questions on the ruling to the state Office of Cannabis Management. That office did not immediately respond to a request for comment after the amended order was posted on the docket.

© Reuters. FILE PHOTO: 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. REUTERS/Eduardo Munoz/File Photo

Leafly in a statement before the amended order was posted said it is important licensed operators have access to advertising tools to help them succeed, and that the company hopes the ruling "ultimately leads to a healthy, stable adult-use market in the state."

Leafly did not immediately respond to a request for comment after the order was amended. (This story has been refiled to say invalidating regulations in the headline)

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