Dispensary Scams on the Rise

Columbus, OH (April 20, 2023) – Consumers are submitting numerous reports to BBB Scam Tracker about scams targeting customers of marijuana dispensaries in U.S. states where sales are legal for medicinal and/or recreational purposes. These phony shops make up legitimate-sounding fees to cheat customers out of their money. Learn how these scams work, so you can spot them before making a payment.

How the scam works:

A consumer does an online search for a local marijuana dispensary and finds a new place that seems legitimate. They may even offer home delivery.

At first, everything seems normal. The consumer calls the dispensary and places an order. Then, he/she makes a payment through a digital wallet app like Zelle or CashApp per “dispensary” request.

But then, the company informs the consumer that another fee payment is needed. In most BBB reports, the “dispensary staff” insists that the extra money covers “delivery insurance” or is standard for all new clients. The fee is typically a few hundred dollars, but the scammer promises the consumer will receive a refund once the delivery is complete.

Once those payments are made, the ‘representative’ will disappear and the company becomes unreachable. Once money is sent through a digital wallet app, it’s unlikely that green will ever be seen.

In similar scams, con artists take money but deliver fake products. One consumer purchased edibles from a reputable-looking company. However, when the product arrived, “I threw the packages away after putting one of the edibles in my mouth, tasting chemicals, and experiencing a burning sensation.” Not only can imitation products cost money, but they can also be dangerous to health.

How to avoid similar scams:

Research businesses before making a purchase. Look up marijuana dispensary reviews on third-party websites before trusting them with your business. Keep an eye out for reports of scams or poor customer service. Look up a dispensary’s name along with the word “scam” to find reports of shady business dealings. If possible, visit the company’s brick-and-mortar store before buying anything from them.

Use digital wallet apps with caution. Keep in mind that sending money through digital wallet apps is essentially like paying cash. If you find out you were scammed after sending money, you won’t be able to get a refund. The best practice is to use digital wallet apps only with people and businesses you know and trust. The safest way to make a purchase is to use your credit card since credit card companies usually allow you to dispute fraudulent charges.

Don’t pay for services or products before you receive them. While you may need to pay in advance for products that will be delivered to your home, try not to do this with a business with which you aren’t familiar or one with poor reviews or none at all. Scammers often ask consumers for payment for products that don’t exist and then disappear.

For More Information:

Check out BBB’s CBD hub to learn more about these products and avoid related scams.

Learn about common scam tactics by visiting BBB.org/AvoidScams

If you spot a scam, report it at BBB.org/ScamTracker. Your report can help other consumers recognize scams and avoid falling victim.

For more news, tips, and scam alerts from BBB, visit: BBB.org/news