The New York State Office of Cannabis Management (OCM) said it has reached a settlement agreement with two licensed cannabis businesses — 2 Forest Park Lane LLC, doing business as Charlie Fox, and Basin Mixtures Inc. — following an investigation by OCM’s Trade Practices Bureau (TPB).
The investigation found the licensees engaged in prohibited cross-tier conduct, including unauthorized branding and promotion of cannabis products under a proprietary dispensary brand, a violation of cannabis law and regulations.
Both licensees admitted that sufficient evidence exists to sustain the OCM’s finding of violations. As part of the settlement, both licensees have agreed to cease all cross-tier activity, each pay a $50,000 civil penalty, as well as update internal compliance procedures and employee training.
Both licensees are subject to undergo 12 months of enhanced compliance monitoring. Enhanced compliance monitoring includes, but is not limited to, additional unannounced inspections, new standard operating procedures and enterprise-wide training on New York State prohibitions against cross-tier operations and arrangements. These measures are required to ensure full compliance with regulations and prevent future violations.
“The core of TPB’s work is to hold licensees accountable and uphold the integrity of New York’s cannabis marketplace. While the Bureau’s work is still in its early days, I am heartened to see these resolutions--the first concluded cases in an ever-growing docket of trade practice investigation matters,” said Felicia A.B. Reid, Acting Executive Director of the New York State Office of Cannabis Management.
The agency said the resolution "serves as a model for collaborative compliance and a reminder that OCM will act decisively when market integrity is at risk."
