California’s Legal Cannabis Businesses Are Turning In Their Illegal Competitors

Consumers are going back to the black market amid high taxes

Licensed cannabis businesses in California who are complying with the state’s regulations are growing increasingly frustrated with the thriving black market. As a result, some licensed dispensaries have filed complaints with the California Bureau of Cannabis Control to try and eradicate their illegal competitors.

The competition between legal and illegal cannabis businesses has resulted in significantly lower-than-expected cannabis revenues in the state. Many blame California’s exorbitant tax rates, which can cost customers up to 45% of their purchase.

Governor Jerry Brown has already moved to launch a special investigative team to eradicate California’s black market cannabis businesses. Brown has allocated $14 million to the initiative. California’s Bureau of Cannabis Control is also taking steps to try and minimize access to the state’s illicit cannabis market.


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