New York's crackdown on its gray market just got a green light from an appeals court. The state's Third Appellate Department has reversed a lower-court injunction that had barred the Office of Cannabis Management and the New York City Sheriff's Office from conducting warrantless inspections and seizures at hemp retailers. The decision, in Super Smoke N Save v. New York State Cannabis Control Board, came down June 11, 2026.
How the fight started
The case began when five licensed hemp retailers sued after enforcement officers seized products from their stores. The businesses, which sell cannabinoid hemp products containing less than 0.3% THC, argued the searches violated the Fourth Amendment, reaching beyond retail floors into locked safes, basement storage, and personal property. A lower court agreed and froze the inspections.
Why the retailers lost on appeal
Writing for the appellate panel, Justice Justin Corcoran held that state law and its implementing regulations adequately define how inspections are conducted and place meaningful limits on officer discretion. The court also leaned on a key condition of doing business: applicants consent in advance to regulatory inspections of their premises as a condition of getting a license. The panel read the rules to let local officials inspect hemp retailers suspected of selling products that exceed the legal THC limit for hemp.
Why it matters
Enforcement has been central to New York's effort to clear the way for licensed shops. The state has already shut hundreds of illegal storefronts and passed a first-in-the-nation anti-inversion law targeting illicit product disguised as legal. This ruling hands regulators back a tool they had lost, and signals that surprise inspections of the hemp trade are here to stay. For adults 21 and over. Not legal advice.