OCM Trade Practices Bureau

The New York State Office of Cannabis Management (OCM) knows that the regulated cannabis industry is rapidly developing–rife with opportunity, high stakes, and significant risk. Inter- and intra-state movers, influences, and operations daily threaten to undermine New York’s economic development goals and the industry’s alignment with the State’s social and economic equity priorities.  

New York’s medical cannabis and two-tier adult-use market are designed to create an accessible industry—where small and medium sized businesses have the opportunity to succeed alongside highly capitalized and multistate operators. But making this industry a reality requires vigilance, an ear to the ground, and the power to holds actors accountable. This is the role of the TPB.

What is Trade Practice?

Trade practice refers to the methods, strategies, and behaviors that businesses use in the cultivation, processing, and distribution of cannabis in the regulated market. This includes ethical standards, competition policies, and regulatory compliance.   

For regulatory purposes this means a focus on fair competition and the prevention of deceptive or unfair business conduct.

TPB's Work

Through investigations, collaboration, and partnership, TPB will work to hold accountable individuals who and operations that undermine New York’s public interest goals in cannabis regulation.

• Regulatory Actions: In collaboration with the Cannabis Control Board (CCB), OCM will take public action with evidence of wrongdoing that violate the Cannabis Law.
• Confidential Investigations: Any TPB review of possible trade practice violations will be conducted with strict confidentiality to ensure fairness and objectivity.  

How TPB Operates

The speed of business is often faster than that of regulation. It requires the humility to inspect what the agency expects and the willingness to adapt.

TPB is a dedicated team of investigative attorneys, investigator-inspectors, and data analysts tasked with:

• Conducting in-depth investigations into potential violations of Cannabis Law and regulations.  
• Utilizing the agency’s authority to subpoena witnesses and administer oaths.
• Analyzing data and market trends to proactively identify threats to industry integrity.

By staying proactive and responsive, TPB will help safeguard a fair, transparent, and well-regulated cannabis industry in New York.

VIEW TPB OVERVIEW

VIEW TPB FAQS

TPB will focus on regulatory offenses related to trade practice, including, but not limited to:

• Inversion: Movement of out-of-state cannabis product or other unlicensed product into the state.
• Unauthorized Ownership & Control: Impermissible loss or change of ownership and/or control of a licensed cannabis business including prohibited contractual agreements, terms, arrangements resulting in undue influence.
• True Party of Interest (TPI) Violations: Violations of regulations limiting the number of cannabis businesses an individual or entity may invest in. TPI rules also govern the investment amounts in multiple cannabis businesses and limit investment in more than one tier. You may own or invest in a cannabis production business (cultivation, processing) or a cannabis sales business (distribution or retail) but not both.
• License Stacking: Impermissible aggregation of licenses.
• Predatory Lending: Unlawful lending practices targeting cannabis licensees.
• Fraudulent Reporting: Submission of fraudulent documents or reports.
• Fraudulent Laboratory Practices: Falsified or deceptive lab results or agreements for the same.
• Deceptive Business Practices: Fraudulent activities that undermine the integrity of the cannabis market or cannabis licensees.

TPB’s Structure & Partnerships

The Trade Practices Bureau (TPB) is led by a Special Assistant, who reports to the OCM General Counsel and operates within the Office of General Counsel (OGC). TPB collaborates with multiple OCM divisions, including:

• Enforcement & Investigations (E&I)
• Compliance
• Health & Scientific Affairs (HSA)
• Market Policy, Innovation, & Analytics (MPIA) 

To support its work, TPB has a dedicated team of investigative attorneys, legal assistants, regulatory investigators, and data analysts who conduct in-depth reviews and build necessary relationships across agencies.

Sources & Investigative Process

TPB can receive evidence of possible Cannabis Law trade practice violations from various sources, including:  

• Other OCM offices
• New York cannabis market surveillance
• Tips and complaints
• News media reports  

Any TPB review of possible trade practice violations will be conducted with strict confidentiality to ensure fairness and objectivity.

Case Development & Review

TPB builds cases through informal and formal reviews, which may include:  

• Interviews
• Record examination
• Data review 

For formal investigations, TPB staff may compel witnesses by subpoena to testify and produce books, records, and other relevant documents.  

Following a review, TPB must present its findings to the Cannabis Control Board (CCB), which can authorize OCM to bring an administrative action or file a case in state court.

For any questions about Trade Practices, please feel free to reach out to us at: [email protected]