By Jonathan Stempel
NEW YORK (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 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.
“We are protecting New Yorkers, particularly young people, from the health and safety threats being posed by illegal cannabis shops,” Adams said. “If you are operating an illegal cannabis business, our administration is sending a clear message: You will be shut down.”
The city estimates it has seized $20 million of illegal products and imposed more than $51 million of civil fines since the crackdown began, in addition to closing the 640 smoke shops.
There are 51 licensed smoke shops in New York City, and 145 in New York State, according to the state’s Office of Cannabis Management.
The case is Moon Rocket Inc et al v. City of New York et al, U.S. District Court, Southern District of New York, No. 24-04519.
(Reporting by Jonathan Stempel in New York; editing by Diane Craft)
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