Cannabis Access by Retailer Type in New York

Increasing state-level cannabis legalization in the United States aims to reduce risks to consumers through regulation but may also lead to more unlicensed retailers and youth access. This study examines how age verification and business practices (eg, pricing, signage, and youth-appealing products) differ by licensing status.

The Cannabis Access and Safety in New York (CASNY) secret shopper study observed 37 dispensaries and smoke shops (5 licensed medical, 7 licensed recreational, 10 unlicensed dispensaries, and 15 smoke shops), randomly selected from 840 outlets across New York City (NYC) in November to December 2023 to audit age verification and other business practices.

Licensed retailers were significantly more likely to require age verification before store entry (100% vs 10%, P < .01) and purchase (100% vs 48%, P = .01). Unlicensed retailers displayed more cartoon signage (57% vs 0%) and sold youth-appealing products like energy drinks (48% vs 0%), soda (57% vs 0%), and candy (53% vs 0%). Both types of retailers were often near schools (75% and 76%) and offered delivery (58% and 36%) but rarely displayed health warnings (8% and 10%).

In NYC, unlicensed retailers outnumber licensed ones and often engage in practices increasing youth access to cannabis. They infrequently verify age, sell cheaper products, and use youth-friendly marketing. Licensed retailers follow age verification laws but are also often near schools and inconsistent with certificates of analysis provision. Further research is needed on policy impacts on youth cannabis use in deregulated markets.