The New York attorney general’s office and a state court have granted a temporary exemption for cannabis e-commerce platform Leafly Holdings to continue operations in the state.
The ruling, first reported by Green Market Report, blocks a regulatory ban on third-party advertising and marketing services in New York’s fledgling adult-use marijuana market.
Seattle-based Leafly is challenging the ban in court.
The lawsuit claims New York’s Office of Cannabis Management (OCM) unfairly targeted so-called third-party platforms such as Leafly in adopting regulations that hamstring the industry and restrict retailers’ ability to market and promote products.
“We are very pleased with the order, but remain concerned that the Office of Cannabis Management’s stance towards third-party platforms deprives consumers and licensed cannabis retailers with important tools that help them navigate legal cannabis in New York state,” Leafly CEO Yoko Miyashita said in a statement.
“We’ll continue to work toward sensible regulations and are hopeful for a solution that empowers small businesses and supports consumer education and choice, while still protecting the public health, safety, and welfare of the people of New York.”
Stage One Dispensary in Rensselaer and a marijuana consumer joined Leafly as plaintiffs in the lawsuit.
Stage One Chief Financial Officer Galina Innes said the decision is a step in the right direction and gives retailers access to services to grow their business.
“The regulations as adopted are needless restrictions on the most basic of market activities and only serve to undermine the emerging legal cannabis market,” she said in a statement.