NYC Unlicensed Cannabis Shops Rarely Checked IDs and Sold Near Schools | Research

The takeaway

A secret shopper study of 37 NYC cannabis retailers found that 100% of licensed shops verified age before entry, compared to just 10% of unlicensed shops, which also sold youth-appealing products like candy and energy drinks.

Cannabis regulators, city officials, parents, youth health advocates, law enforcement

10% of unlicensed shops verified age before entry vs 100% of licensed

What the researchers found

Licensed retailers required age verification before store entry (100% vs 10%) and before purchase (100% vs 48%). Unlicensed shops displayed cartoon signage (57% vs 0%) and sold candy (53%), soda (57%), and energy drinks (48%). Both types were often near schools (75-76%). Health warnings were rare across both types (8-10%).

Why it matters

Youth access to cannabis is a primary concern of legalization. This study provides direct evidence that unlicensed retailers, which outnumber licensed ones in NYC, are failing to prevent youth access through lack of age verification and youth-oriented marketing.

The numbers in context

37 retailers observed. Age verification before entry: 100% licensed vs 10% unlicensed. Before purchase: 100% vs 48%. Cartoon signage: 57% unlicensed vs 0% licensed. Near schools: 75-76% for both. Health warnings displayed: 8-10% for both.

How the study worked

Secret shopper study observing 37 dispensaries and smoke shops (5 licensed medical, 7 licensed recreational, 10 unlicensed, 15 smoke shops) randomly selected from 840 outlets across NYC in November-December 2023. Audited age verification and business practices.

What this study cannot tell us

Small sample in one city. Snapshot during early legalization. Secret shopper methodology captures one visit, which may not represent typical practices. Could not assess actual sales to minors.

How to read the evidence

Moderate: direct observational data from a randomly selected sample, but small sample size and single-city focus

When this study was published

Published in 2025 (Pediatrics) using November-December 2023 NYC data

The bigger picture

NYC's struggle with unlicensed cannabis retailers is not unique. Many legal states face similar challenges. The stark difference in age verification between licensed and unlicensed shops underscores why enforcement matters for youth protection.

Questions still open

What enforcement strategies would most effectively reduce unlicensed retailers? How do youth perceive and access these different retailer types? Would proximity-to-school restrictions reduce youth access?

Common questions

How many unlicensed cannabis shops are in NYC?

The study sampled from 840 known outlets across NYC, with unlicensed retailers outnumbering licensed ones. This reflects the challenge many cities face in establishing a regulated market while the unlicensed market continues to operate.

Are cannabis shops near schools?

Yes. About 75-76% of both licensed and unlicensed retailers were near schools. This was consistent regardless of licensing status, suggesting that proximity restrictions may need strengthening for all retailer types.

Read the original research

Cannabis Access by Retailer Type in New York.

Pediatrics, 155(3)

View on PubMed ↗Publisher’s paper ↗

Citation

Becker, Timothy D; Olfson, Mark; Menzi, Peter J; Levin, Frances R; Hasin, Deborah S; Nuckolls, Colin; Sultan, Ryan S. (2025). Cannabis Access by Retailer Type in New York.. Pediatrics, 155(3). https://doi.org/10.1542/peds.2024-068669