Ruling: Judge won’t halt New York City crackdown on unlicensed cannabis sales

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NEW YORK, July 18 (Reuters) – A federal judge on Thursday refused to halt New York City’s crackdown on unlicensed sellers of cannabis, citing public safety concerns.

U.S. District Judge Paul Oetken in Manhattan said 27 cannabis sellers whose businesses were shut down were unlikely to succeed on their claim that the closures violated their due process rights under the U.S. Constitution’s 14th Amendment.

A lawyer for the sellers did not immediately respond to requests for comment.

New York City has through its “Operation Padlock to Protect” program, opens new tab closed 640 unlicensed smoke shops since early May, using enforcement powers under a new state law known as the Smokeout Act. Unlicensed shops vastly outnumber licensed shops.

The 27 sellers accused the city of causing irreparable harm by unilaterally closing shops, including for non-cannabis products, based on an assumption they were unlicensed.

Oetken, however, said the risk of “erroneous deprivation” was low, citing procedures that could let sellers reopen within a couple of weeks.

The judge also said unlicensed shops pose “significant” public health risks because of their unregulated processing and labeling, and an “especially significant risk to minors as a result of their locations and marketing practices.”

In a statement, New York City Mayor Eric Adams welcomed the decision.

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