Weedmaps Accused of Allowing Illegal Ads On Its Platform Again
Three years ago, under pressure from state regulators, Weedmaps cracked down on unlicensed retailers advertising on its website. Now the company is accused of dropping the ball, allowing companies to peddle unsafe, unregulated products to consumers.
Complaints were filed in May and June with the California Department of Cannabis Control (DCC) and the U.S. Securities and Exchange Commission (SEC). They claim Weedmaps is greenlighting “vast amounts of black market activity through their website, and they know about it but won’t do anything about it.”
The complaint was filed by a legal cannabis company called Canex Delivery, based in Los Angeles.
“Canex, led by CEO Jim Damask and Chief Financial Officer Joseph Bitzer, gave regulators scores of documents and screenshots to back up its allegations,” Marijuana Business Daily reports.
One screenshot, which can be viewed here, features an edible product with 1000mg THC — well above the legal limit.
If Weedmaps is ultimately found to be allowing illegal advertisers on its platform, it could face steep fines.
