Illinois probes marijuana retailers for sourcing violations

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Illinois regulators are investigating apparent violations of a regulation intended to prevent marijuana stores from sourcing marijuana from a single cultivator.

The Illinois Department of Financial and Professional Regulation also reminded retailers that they are required by law to keep enough product on hand for medical marijuana customers.

Just over a week after the state’s Jan. 1 launch of adult-use sales, the agency sent letters to some marijuana retail stores saying they were being probed for potentially illegally sourcing more than 40% of their product from one grower.

The law is aimed at preventing marijuana growers from entering into exclusive agreements with specific retailers so that all sellers have a diversity of products from various sources.

Store owners are concerned that some companies that own both marijuana retail shops and cultivation sites could be attempting to control the market by limiting product available to competitors.

While the letter was intended to merely put the shops on notice that they need to correct any infractions, retailers could face fines and penalties of up to $20,000 if the situation persists.

The warning comes as some retailers are struggling with a shortage of product as demand has been outstripping supply.

– Associated Press