OCM Reaches Settlement with Charlie Fox Dispensary and Basin Mixtures Over Branding Violations

The New York State Office of Cannabis Management (OCM) announced today a landmark settlement with two licensed cannabis companies—Charlie Fox (2 Forest Park Lane LLC) and Basin Mixtures Inc.—following an investigation by the agency’s Trade Practices Bureau (TPB). The agreement addresses prohibited branding practices that violated the state’s cannabis regulations.

The TPB investigation found that both companies engaged in unauthorized cross-tier conduct by promoting cannabis products under a proprietary dispensary brand, a clear breach of New York's cannabis laws, which prohibit licensees from holding interests across multiple supply chain tiers. Both companies acknowledged that sufficient evidence existed to support OCM’s findings.

As part of the settlement, each company will pay a $50,000 civil penalty, cease all cross-tier promotional activity, and implement updated compliance protocols including staff training. Additionally, both licensees will be subject to 12 months of enhanced compliance monitoring. This will involve unannounced inspections, revised standard operating procedures, and ongoing education on the legal separation between license tiers.

Felicia A.B. Reid, Acting Executive Director of the OCM, emphasized the significance of the resolution:

“The core of TPB’s work is to hold licensees accountable and uphold the integrity of New York’s cannabis marketplace. While the Bureau’s work is still in its early days, I am heartened to see these resolutions—the first concluded cases in an ever-growing docket of trade practice investigation matters.”

James Rogers, Director of the Trade Practices Bureau, reinforced the message of fair play:

“New York’s cannabis market was built on the promise of fairness, transparency, and equity and that promise only holds if all licensees play by the rules. This resolution reflects our commitment to accountability.”

The decision was met with support from key industry groups. John Vavalo, President of the Association of New York Cannabis Processors, praised the outcome:

“As representatives of the licensed manufacturers in the New York market, our members have advocated for compliance and transparency since Day One.”

Mack Hueber, President of the Empire Cannabis Manufacturers Alliance, added:

“When businesses undermine the competitive fairness rules of our market, we all lose… The manufacturing and wholesale community commends the Trade Practices Bureau for delivering a decisive message.”

The Trade Practices Bureau is a dedicated enforcement arm within OCM that investigates complex business arrangements, identifying violations such as fraudulent deals, cross-tier partnerships, and predatory contracts. Its goal is to ensure a level playing field, especially for small and equity-driven businesses.

This settlement marks one of the Bureau’s first public enforcement actions and sets a precedent for future regulatory oversight. OCM reaffirmed its ongoing commitment to monitoring and educating the industry, ensuring a responsible and transparent cannabis marketplace for New Yorkers.

To report a complaint or suspected violation anonymously, visit: https://cannabis.ny.gov/report-an-incident