NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Budget 2025
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Buy a shirt, get a pot 'gift': companies exploit US law loophole

NZ Herald
1 Feb, 2018 05:44 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Creative retailers are finding ways to sell marijuana before legislation comes into effect. Photo/AP.

Creative retailers are finding ways to sell marijuana before legislation comes into effect. Photo/AP.

That ordinary bottle of juice delivered to your doorstep will set you back at least US$55 (NZ$74). But the bag of marijuana that comes with it? On the house.

Retail marijuana stores are months away from opening in Massachusetts, but some companies have been quietly operating for more than a year, selling and delivering marijuana via a legal loophole that exists in nearly every state that has legalised recreational marijuana use.

Companies like HighSpeed, which describes itself as a juice delivery service, are exploiting so-called "gifting" provisions that allow for the exchange of small amounts of the drug, so long as it's given away — "gifted" — from one adult to another.

The legal language makes it permissible to pass a joint at a party or drop a bud in your brother's Christmas stocking, but some entrepreneurs see it as an opportunity to get ahead of the regulated market, planting an early stake in what could become a crowded and lucrative industry.

In places where legal pot shops exist, gifting operations undercut the licensed retailers, because they don't face the same oversight or pay marijuana sales taxes. And they complicate things in places like Vermont, Maine and Washington, D.C., which have legalised pot but have no firm plans to open regulated storefronts.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"Under any fair reading of the law, these businesses are illegal," said Roger Katz, a Republican state senator in Maine who is studying the issue. "If it walks like a duck, quacks like a duck, it is a duck."

At least four enterprises have done gifting business in Massachusetts since marijuana was legalised in December 2016, two of them in the Boston area, The Associated Press found in an investigation that included records gathered from law enforcement agencies around the state.

In addition to HighSpeed, a Boston-area company cleverly called Duuber has drivers delivering marijuana-themed T-shirts that come with gifts of pot.

Advertisement
Advertise with NZME.

Officials in western Massachusetts also looked into a Craigslist ad offering plastic sandwich bags costing up to $325 apiece (the marijuana in them was free) but dropped the case after they couldn't identify the seller.

In Springfield, officials ordered a smoke shop called Mary Jane Makes Your Heart Sing to shut down last March after it gave marijuana to customers who paid a $25 to $50 admission fee.

That hasn't scared HighSpeed, which also operates in D.C.

"We've had no issues with law enforcement, and we're going to do our best to keep it that way," said founder David Umeh. "We're not doing anything wrong. We're abiding by the current legislation until it changes."

Discover more

Business

Scary economy 'feels a bit like 2006'

01 Feb 09:26 PM
Business

Net migration dips as more Kiwis leave

01 Feb 09:59 PM

Gifting provisions are on the books in Massachusetts and all but one of the other states that have legalised marijuana: Alaska, California, Colorado, Maine, Nevada, Oregon and Washington state, plus D.C. Most instituted the measure specifically as part of new marijuana laws.

Vermont does not have a provision, but local experts and activists argue the exchanges will be permitted there, too, since they're not expressly banned.

Some states have tried to stem abuse of the laws by prohibiting businesses from advertising marijuana giveaways or specifically banning "delayed or disguised" payments for marijuana gifts, said Leo Beletsky, a law professor at Northeastern University in Boston.

But businesses simply find ways to obscure what they're doing, he said, and then rely largely on word of mouth to make sales. Clued-in customers can infer how much pot they're ordering judging by the price and size of the items accompanying it, but for the most part, they're at the mercy of the seller.

In the case of HighSpeed, there is no mention of marijuana on its website. The company sells drinks priced from $55 to $150, depending on whether the beverage comes with "Love" or "Lots of Love."

The AP recently put in a $60 order for "Raspberry Roxbury" with "Love" and received a bottle of Tazo juice along with about an eighth of an ounce of marijuana.

Advertisement
Advertise with NZME.

Duuber also doesn't explicitly spell out its marijuana "gift" on its website. But when the AP ordered a $100 product listed as "Luxury Tshirt - Citrus - small," the brown paper bag delivered by a driver contained a white T-shirt with the company's name in black over an image of a marijuana leaf — and a clear plastic bag of marijuana labeled "1/4 Ruthless OG."

The opening of retail shops in states with marijuana laws should eventually make most gifting operations obsolete, said Morgan Fox, spokesman for the D.C.-based Marijuana Policy Project.

"People want quality control-tested products," he said. "The sooner that happens, the sooner this sort of thing disappears."

But in Colorado, where pot shops opened in 2014, gifting businesses are still hatching creative ways to skirt the law, said Detective Kerry Linfoot of the Colorado Springs Police Department. The department shut down 14 gifting businesses last year.

U.S. Attorney General Jeff Sessions' decision to rescind an Obama-era policy that called for non-interference with legal state marijuana operations could also help bolster gifting and other underground operations, Beletsky said.

"If the feds somehow came down on state regulators or licensed retail operations," he said, "that could provide a convenient opening for these gray-market operators to scale up what they're already doing."

Advertisement
Advertise with NZME.

- Associated press

Save

    Share this article

Latest from Business

Crime

Company directors turned inmates: How two Australians duped Spark with $20m in contracts

20 May 02:21 AM
New Zealand

NZ's red meat renaissance - Rabobank

20 May 02:14 AM
Premium
Property

Rich-lister wants to demolish iconic Auckland boatshed

19 May 10:30 PM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Company directors turned inmates: How two Australians duped Spark with $20m in contracts

Company directors turned inmates: How two Australians duped Spark with $20m in contracts

20 May 02:21 AM

Corrupt company directors Sean Bryan and Mark Lester are both headed to prison.

NZ's red meat renaissance - Rabobank

NZ's red meat renaissance - Rabobank

20 May 02:14 AM
Premium
Rich-lister wants to demolish iconic Auckland boatshed

Rich-lister wants to demolish iconic Auckland boatshed

19 May 10:30 PM
NZ's new cheapest petrol station revealed

NZ's new cheapest petrol station revealed

19 May 10:04 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP