From accusations of regulatory retaliation to a proliferation of illicit weed shops, the Empire State’s cannabis market has endured a number of challenges. Now, some of the most popular pot brands are being pulled from dispensary shelves, leaving retailers in the lurch and consumers coming up empty-handed.
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According to a report from The New York Times, the New York Office of Cannabis Management (OCM) recently ordered retailers to embargo millions of dollars worth of product. The majority of the goods are vapes and pre-rolls from top-selling brands Stiiizy and Mfused, though others are implicated as well. The items must remain locked away as regulators investigate the authenticity and safety of cannabis oil used in production.
The OCM is looking into accusations that the oil used inside the vapes was made from cannabis flower originating outside the legal market. The so-called “inversion” allegations stem from an audit of Omnium Health, a licensed manufacturer. The state claims the oil was produced at an affiliated site that was not approved by regulators. Omnium Health told The New York Times a clerical error was behind the confusion. Representatives of Stiiizy and mfused also refuted allegations related to their brands.
Meanwhile, a separate embargo centers on pre-rolls made by Adonis Distribution. The OCM said the joints containing added terpenes “were not properly logged.” If the records can be verified, the pre-rolls will be released.
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Until the investigation is cleared up, the products will remain under lock and key. It’s a big issue for retailers who cannot move the inventory, especially since the brands in question are in high demand.
Many of the quarantined SKUs had already been sold by the time the embargo went into effect. If the OCM proves its allegations, the products could be recalled and destroyed. Until then, it’s a waiting game for dispensary owners forced to sit on unsellable merchandise.
