Complaints Allege Weedmaps Is Advertising Illegal Marijuana Retailers And Products Again
- 2 years ago
Cannabis advertising giant Weedmaps is again carrying listings on its website for illegal or unlicensed marijuana retailers and products in California, according to complaints filed with state and federal regulators.
The complaints, filed in May and June with the California Department of Cannabis Control (DCC) and the U.S. Securities and Exchange Commission (SEC), allege that Weedmaps’ leadership is “allowing vast amounts of black market activity through their website, and they know about it but won’t do anything about it.”
The alleged “black market activity” is directly harming licensed and legal businesses, the complaints contend, by giving underground operators a competitive edge with Weedmaps’ advertising platform. That undercuts the same legal marketplace that Weedmaps aims to serve, the complaints said. If regulators determine the allegations have merit, Weedmaps could face hefty fines, industry experts said, which would be notable for one of the most prominent U.S. cannabis companies to trade on a major stock exchange.
The complaints, filed in May and June with the California Department of Cannabis Control (DCC) and the U.S. Securities and Exchange Commission (SEC), allege that Weedmaps’ leadership is “allowing vast amounts of black market activity through their website, and they know about it but won’t do anything about it.”
The alleged “black market activity” is directly harming licensed and legal businesses, the complaints contend, by giving underground operators a competitive edge with Weedmaps’ advertising platform. That undercuts the same legal marketplace that Weedmaps aims to serve, the complaints said. If regulators determine the allegations have merit, Weedmaps could face hefty fines, industry experts said, which would be notable for one of the most prominent U.S. cannabis companies to trade on a major stock exchange.