US (IL): Regulators investigating violations to stockpiling rule

In a matter of a couple weeks, Illinois’ recreational cannabis consumers have all but depleted the state’s stock of cannabis products. The widespread disequilibrium between supply and demand has made it tough for dispensaries to serve customers. And some shops, Illinois regulators say, have started breaking the rules in order to put products on their shelves.

Since issuing a formal warning to Illinois dispensaries last week, regulators have begun investigating violations of rules against stockpiling cannabis and selling medical cannabis reserves to non-patients. The scope and extent of these violations is still unknown, but officials say persistent offenders could face fines and potentially, antitrust investigations.

Regulators also said that some dispensaries are breaking another rule to deal with the supply shortage. They’re sourcing more than 40 percent of their products from a single cultivator.

The rule is an anti-stockpiling measure designed to prevent certain businesses from attempting to control the market by controlling supply. Illinois law does permit vertical integration in the cannabis industry, meaning a cannabis company can own and operate both dispensary sites and cultivation sites.


Publication date:

Receive the daily newsletter in your email for free | Click here

Other news in this sector:

© 2020

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber