Spotting the Difference: Legal versus Illegal Cannabis Retail Shops

All small businesses find challenges to success when they first open. However, unlike other types of businesses, legal cannabis businesses have additional challenges, such as competition from the illicit cannabis market; restrictions on advertising on many platforms, including social media; and a unique tax structure. These make it challenging for legitimate cannabis businesses to turn a profit, acquire customers, and find a path to success.??

It’s important to support those businesses that have taken the steps to build a legitimate and safe enterprise that protects public health and supports the local economy. At the moment, some consumers may not know what is and isn’t a legal cannabis retail store.?

To shop legal and local, below are a few things to look out for as a customer.?

Does the shop display a County Emblem?

Cannabis retailers who have completed the LA County Department of Public Health’s Cannabis Compliance and Enforcement Program (CCEP) and received all required state and local licenses will display the Authorized Cannabis Store checkmark emblem placard. This designation allows consumers to ensure that the cannabis businesses they frequent are legal and are complying with public health standards for consumers, State regulations, and local ordinances.

This program is fairly new, so not all legal cannabis stores have finished the process. However, many? stores in the City of Los Angeles have already earned their Authorized Cannabis Store emblem placard, which must be displayed prominently in the front window. To learn more about the emblem program, click here.?

Did someone check your ID?

Another tip to know is that licensed cannabis dispensaries are required to have staff check customer IDs or driver’s licenses. They typically also have a holding or lobby area where customers must wait to be verified before entering the store. If you are able to walk right into the store without being asked to provide an ID to verify your age, that’s not a licensed store.

How are the products displayed?

Cannabis products must be kept under glass or behind the counter in sealed packaging. Cannabis products cannot be displayed where it is visible from outside of the business premises. Cannabis goods are accessible for inspection when a customer is accompanied by a store employee within the retail area. If you see products from the outside of the building, you can bet the store is illicit.

Was tax added to your bill?

California’s cannabis law requires a State excise tax to be tacked onto all purchases. This is in addition to the State sales tax and any local taxes that may be imposed. While some retailers may opt to price their products with taxes included, the exact amount of tax should be outlined on your receipt. Don’t see any tax added—or didn’t get a receipt at all? You’re in an unregulated shop.

When is the store open for business?

Legal cannabis retail stores and delivery services are allowed to operate between the hours of 6:00 AM and 10:00 PM only. If the business you frequent is operating outside of those hours, the dispensary could be unlicensed.?

Of course, the foolproof method to find a licensed cannabis retailer is to check DCR’s map of local retailers in the City of Los Angeles. For shoppers interested in supporting small businesses and social equity operators, find your nearest legal cannabis shop here.

Also, if you are not sure if a dispensary near you is operating within the guidelines described above or may be unlicensed, you can report suspicious cannabis business activity to the DCR Complaint Portal.

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