An Overview Trade Practices Bureau (TPB)
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.
For regulatory purposes this means a focus on fair competition and the prevention of deceptive or unfair business conduct.
TPB's Work
Through reviews, collaboration, and partnership, TPB will work to hold accountable individuals and operations that undermine New York’s public interest goals in cannabis regulation.
How TPB Operates
The speed of business is often faster than that of regulation. It requires the time and expertise to inspect what the agency expects and the willingness to adapt.
TPB is a dedicated team of attorneys and staff tasked with:
- Conducting in-depth reviews into potential violations of Cannabis Law and regulations.
- Utilizing the agency’s authority to subpoena witnesses and administer oaths.
- Working with Compliance and Enforcement to bring action against violators.
- Advising the Board of trade practice trends and activities.
By staying proactive and responsive, TPB will help safeguard a fair, transparent, and well-regulated cannabis industry in New York.
Licensee Bulletins
Below you’ll find official bulletins issued by the Office of Cannabis Management to adult-use licensees. These notices include regulatory updates, compliance reminders, and other important guidance. All bulletins are available as downloadable PDFs for public access and reference.
TPB’s Regulatory Oversight Investigative Scope & Compliance
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 the Director of Trade Practices, 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 attorneys, program analysts, legal assistants who conduct in-depth reviews and build necessary relationships across agencies.
Sources & Investigative Process
TPB can receive evidence of possible trade practice violations from various sources, including:
- Other OCM divisions
- Tips and complaints
- News media reports