Tag: black market

Germany’s Top Health Official Defends Marijuana Legalization Bill Against Critics Ahead Of Next Week’s Vote

As German lawmaker prepare to vote on a revised marijuana legalization bill next week, the country’s health minister defended the reform against critics in the legislature, while briefly outlining next steps for a commercial sales pilot program. Meanwhile, one German state is signaling that it will pursue legal action to block the reform from taking effect within its borders.

At a meeting before the Bundestag on Wednesday, Health Minister Karl Lauterbach took a series of questions from members, some of whom oppose legalization and others who expressed interest in expeditiously enacting the reform.

At several points, he pushed back against lawmakers who suggested that legalization would send the wrong message to youth and lead to increased underage consumption, saying their arguments “misrepresented” the legislation, according to a translation.

“The fact remains that child and youth protection is carried out through education, and sales to children and young people remain prohibited,” Lauterbach said. “That is the only change we have made in this area: a tightening.”

“As part of this legalization, we are pushing back the black market,” he said. “The less of the black market there is, the lower the risk that our children will be brought into consumption through the black market.”

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California Attorney General Calls For ‘Lowering Taxes’ On Marijuana To Combat The Illicit Market

California’s attorney general says the cost of doing business in the state’s legal marijuana marketplace is too steep, pointing to high taxes and compliance hurdles that can create incentives for entrepreneurs to remain in the illicit market.

“The barriers to entry are too high,” state Attorney General Rob Bonta (D) said at an event in Fresno on Tuesday. “The costs to stay in operation are too high. And we should be lowering taxes at least temporarily.”

For operators trying to comply with state law, he continued, “We should make the regulatory burden less than what it is while we target the illicit market that is undercutting them.”

Bonta’s comments came as he announced a new program to aid cities and counties in addressing illegal marijuana activity through administrative enforcement and nuisance abatement. For too long, he said, fly-by-night operators in the state have gotten away with it.

“Some folks believe they can avoid the tax burden or regulatory burden and just operate and make a profit without being legal,” Bonta said at the event. “And they’ve been doing it. They haven’t been shut down. They haven’t had an administrative action taken against them. And that’s what is necessary, and that’s why this will be an important tool.”

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DeSantis Doubles Down On Opposition To Marijuana Legalization, Claiming Colorado’s Illicit Market Is ‘Bigger And More Lucrative’ After Reform

Florida Gov. Ron DeSantis (R), a 2024 Republican presidential candidate, has reaffirmed that he would not legalize marijuana if elected to the White House—arguing contrary to evidence that the reform has actually increased the size of the illicit market in Colorado.

During a campaign event in Iowa on Saturday, an attendee told DeSantis that she knows people whose children developed “cannabis-induced psychosis” and asked about whether he would move to legalize or reschedule cannabis under federal law if he became president. In response, the GOP contender made clear that he “would not legalize,” echoing anti-marijuana arguments he previously made in June.

“I think what’s happened is this stuff is very potent now. I think when young people get it, I think it’s a real, real problem, and I think it’s a lot different than stuff that people were using 30, 40 years ago,” DeSantis said. “I think when kids get on that, I think it causes a lot of problems and then, of course, you know, they can throw fentanyl in any of this stuff now.”

The candidate then pivoted to a broader discussion about the harms of substance misuse, stating that there’s an “open air market” for illicit drugs in San Francisco, and that society has “totally decayed” under policies that “really help these folks use drugs.”

DeSantis did acknowledge that Floridians have access to medical cannabis under a constitutional amendment that voters approved, saying that “we abide by that” but noting that “states have handled cannabis differently” and he would not “take action now to make it even more available.”

Florida voters may have the choice to expand access regardless of the governor’s position, as the state Supreme Court is currently considering whether a marijuana legalization initiative will appear on the state’s 2024 ballot.

“I would not do that,” DeSantis said on Saturday. “And the places that legalized it like Colorado and California, you know, the argument was—and honestly it wasn’t a crazy argument—’Look, we know people are going to use marijuana. It is a drug. If you legalize it, then you can tax it, regulate it, and it’s going to end up being safer for people.’”

“But what’s happened in Colorado, the black market for marijuana is bigger and more lucrative than it was before they did the legalization,” the governor said. “So the legalization I don’t think has worked.”

DeSantis didn’t provide data or cite any sourcing to support that argument. But private and government analyses have suggested that Colorado has in fact significantly reduced the influence of the illicit market in the decade since enacting legalization.

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Colorado’s marijuana industry calls this year’s 4/20 sales “the worst” in recent years

Colorado’s marijuana industry dubbed weed sales for this year’s 4/20 “the worst” in five years.

The Marijuana Industry Group, a Denver-based trade association, is sounding the alarm bells for the state’s “struggling” industry, as falling sales compound with business closures and layoffs. This year, the market’s entrepreneurs are contending with too much supply, not enough demand, increased competition in other states, dropping prices, a dearth of cannabis tourism, the draw of black market weed and more.

April’s marijuana sales – medical and retail combined – stood at close to $132 million, which counts as the lowest number in five years, according to the Colorado Department of Revenue. In April 2018, the number was about $124 million.

This year, total medical marijuana sales looked especially dismal in April at almost $17 million. That’s the lowest amount ever recorded for that month since sales first started in January 2014.

Meanwhile, total retail marijuana sales in Colorado amounted to almost $115 million in April – the lowest number of sales since April 2020 at $112 million. Comparatively, retail sales jumped in 2021 to close to $167 million before plunging to $132 million that month of the next year.

“Colorado cannabis small business owners count on the weeks leading up to the 4/20 holiday to be some of the strongest sales of the year,” said Truman Bradley, executive director of the Marijuana Industry Group.

His association estimates that “2023 sales are on track to be down even further than 2022.”

In Denver, the number of medical marijuana store licenses has fallen 27% over the past five years, to 144 licenses this year, according to its annual marijuana report. In 2014, that number was 255.

“As medical marijuana sales decline, some medical marijuana businesses have surrendered their licenses or let them expire,” the report said.

The drop in licenses parallels the decline in the number of registered medical marijuana patients since that year.

But some silver linings still persist for Denver’s cannabis industry. In 2023, the number of retail marijuana store licenses has jumped to 188 – a 13% increase over the past five years. That’s a rise from 109 licenses in 2014.

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Worldcoin May Have a Biometric Data Black Market Problem

Worldcoin, the digital identity and financial services crypto project that verifies people by scanning their irises, has found itself amid controversy after reports alleging that fraudsters are buying iris scans from the black market to register on the platform.

The project, which is headed by OpenAI CEO Sam Altman, is currently preparing to launch and has been registering users across the world with the help of its physical imaging device called the Orb. The project aims to give everyone on the planet some of its Worldcoin crypto token after registration while their accounts are anonymized.

The lure of free crypto that may be exchanged for real money in the future seems to have been too strong for some people. According to Chinese blockchain-focused outlet Blockbeat, fraudsters have been offering iris scans from Know Your Customer (KYC) merchants in Cambodia for less than $30. Other iris scan may come from African countries such as Kenya.

Blockbeat did not clarify whether the back market iris scans were genuine or whether they were successfully used for registration for Worldcoin.

In response to Gizmodo, Worldcoin said that the platform did not have an issue with iris scans on the black market but it did detect several hundred cases of fraud involving its digital passport World ID, the verification protocol used to determine real identities. The World IDs are being sent to a third-party World app on the black market. The company claims it has taken steps to increase security and create a new recovery process for users’ World ID.

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New York’s Heavy Hand Keeps Illegal Marijuana and Tobacco Dealers in Business

While I have fond memories of life in New York, many of them involve defying some stupid rule or regulation. It’s a pleasure to now live in Arizona where government, while still idiotic, generally has a lighter touch. Unfortunately for friends and family I left behind, Empire State officialdom still hasn’t learned its lessons, as evidenced by the heavy regulatory hand stifling sort-of-legalized marijuana, and proposals to similarly reinforce the black market with an outright ban on cigarette sales.

“Governor Kathy Hochul today signed new legislation to increase civil and tax penalties for the unlicensed and illicit sale of cannabis in New York as part of the FY 2024 Budget,” the New York governor’s office announced this week. “The legislation, first proposed by the Governor in March, provides additional enforcement power to the Office of Cannabis Management and the Department of Taxation and Finance to enforce the new regulatory requirements and close stores engaged in the illegal sale of cannabis.”

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The growing Chinese investment in illegal American weed

A few days before Christmas, a joint law enforcement task force found nearly 9,000 pounds of cannabis worth almost $15 million during a raid in a suburban neighborhood in Antioch, Calif.

The California Department of Cannabis Control believes that the four houses searched in the bedroom community 45 minutes outside San Francisco were linked to China.

Mexican cartels have a long history of importing, growing and redistributing illicit cannabis in the United States. But Chinese investors, owners and workers have emerged in recent years as a new source of funding and labor for illegal marijuana production.

What is known — from interviews with state law enforcement officials, experts on the international drug trade, economists and lawmakers — is that the number of farms funded by sources traceable back to Chinese investors or owners has skyrocketed. Chinese owners and workers have become a larger presence at illegal grows in Oklahoma, California and Oregon, they say.

In Oklahoma, close to 3,000 of the state’s nearly 7,000 licensed marijuana farms have been flagged for suspicious activity by law enforcement over the last year. Those operations are now being investigated for obtaining their licenses fraudulently and/or for selling into the illicit market, according to Mark Woodward, spokesperson for the Oklahoma Bureau of Narcotics.

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The Underground Abortion Pill Network Is Booming

At least 20,000 packets of abortion pills were shipped to people in the United States in the six months after the Supreme Court overturned Roe v. Wade, two sources with knowledge of the situation told VICE News. 

The suppliers of these estimated 20,000 packets are neither abortion clinics nor abortion telehealth organizations, but instead operate outside of the U.S. legal health care system. The demand for their pills, as well as their success at shipping them out undetected, are evidence of the thriving underground abortion network that has sprung up since Roe’s demise devastated access to abortion clinics. 

Meant to be used by people who want to induce their own abortions, these pills—and the people who supply them—are in a legal grey area. Self-managing an abortion is only banned in a few states, but experts have long warned that if a prosecutor is determined to press charges for it, they’ll find a way.

“People have always self-managed abortions and will always self-manage abortion. We’ll have to continue to fight back against all of the bans and restrictions that are being implemented on people,” said Christie Pitney, a licensed nurse practitioner, a midwife with Forward Midfwery, and co-founder of Abortion Freedom Fund, a fund for telehealth abortions. Referring to self-managed abortion, she added, “it’s just going to grow more and more.”

Pitney works with both Aid Access, an organization that mails abortion pills to states where abortion is legal, through providers like Pitney, and to states where it is not, through a doctor who is based overseas. When she started working at Aid Access, where she legally provides abortion pills to people in two states, Pitney estimated that she used to help roughly 60 people get access to abortion pills each month. Now, she said she helps “hundreds” per month.

“Those are specifically for myself, not even the whole organization,” said Pitney, who confirmed to VICE News that at least an estimated  20,000 abortion pills were shipped between the June 2022 Roe decision and December 2022. 

Aid Access is not one of the suppliers included in the 20,000 estimate, suggesting that the true number of abortion pills that have been mailed out through covert channels since the end of Roe is even higher. A recent study of Aid Access also found that the organization received almost three times as many requests for help after Roe was overturned, compared to before a draft of the Supreme Court decision overturning Roe leaked in May 2022. The biggest increases in requests came from people in states that have banned abortion.

Since Roe’s demise, at least 13 states have enacted near-total abortion bans. Data from the Society of Family Planning found last year that, in the two months following Roe’s demise, there were 10,000 fewer in-clinic abortions in the U.S. 

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Black Market in Broad Daylight

Operating in the shadows is easy in the United States secondary food market, as few question what happens to food that exceeds its expiration date in leading supermarket chains across the nation. Well, truth be told, expired food gets reprocessed, repackaged, relabeled, and resold to institutions, discount retailers and restaurants.

With scant regulations in place for repurposed food, and institutional purchasing specifications silent, food liquidators underbid their competitors and win contracts nearly every time. In the secondary food market, you get what you pay for, and never has the saying “garbage in, garbage out” been more appropriate.

No matter how much hot sauce or gravy is added as camouflage, spoiled food products are unfit for human consumption and cause foodborne illness. Here, what you don’t know can kill you.

In its most recent public report posted on its website, the Centers for Disease Control (CDC) estimate that, each year, roughly 1 in 6 Americans (or 48 million people) get sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases. However, “recent” is a misnomer here as the CDC’s report is shamelessly outdated by more than ten years. It was issued in January 2011.

Considering that food poisoning is an embarrassing indicator that reveals in its gory horror the systemic corruption of what turns out to be an unregulated food market, it is highly probable that there was undercounting back in 2011—especially in institutional settings. And it is more than likely that things are even worse in 2022.

When oversight agency reports are no longer published, it is clearly because industry statistics and agency performance metrics do not look good. Cover-ups at the federal level are routinely done by appointing incompetent or industry-compromised agency heads, and by defunding key reporting departments, and reducing analytic staff positions and field inspectors.

Despite oversight agency neglect, both schools and prisons have been independently studied for foodborne illness outbreaks. While these reports/articles are also outdated, their shallow analysis remains current. The accepted prevailing narrative blames foodborne illness outbreaks on food handlers that failed to follow U.S. Department of Agriculture (USDA) protocols for cleanliness and neglected to maintain the proper temperatures for food storage and service.

While not to detract from standards set by the USDA, there are no reports that expose the lethal dangers of the secondary food market. Moreover, unlike the primary food market, these repackaging facilities are not inspected, despite their erroneous claims of USDA or FDA certifications.

A media spokesperson for the U.S. Food and Drug Administration (FDA) explained that “the FDA doesn’t oversee meat and poultry, only dairy products.” And that “expiration dates are not regulated, only food safety.”

This is a double-edged sword. On the one hand, food that is spoiled, contaminated, or toxic but within its expiration date is unquestionably unfit for human consumption. On the other hand, expiration dates are necessary as packaging, coloring and processing conceal food quality from consumers, as well as purchasing agents and food handlers.

When a food product’s expiration date is concealed by repackaging and relabeling, all food safety bets are off. The reselling of expired food is a black market in broad daylight.

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