Massachusetts Regulators Extend Delivery Exclusivity for Three More Years, Expands Secret Shopper Program

The Massachusetts Cannabis Control Commission voted unanimously today to make regulatory changes that will extend the exclusivity period for delivery licenses through April 2029 and “improve the Secret Shopper off-the-shelf testing program.” Following the vote, the updated regulations will go through the Secretary of the Commonwealth’s promulgation process for implementation prior to April 1, when the current delivery exclusivity period for Social Equity Program Participants (SEPs) and Certified Priority Economic Empowerment Applicants (EEAs) is set to expire. This is the Commission’s second regulatory update in recent months following the approval of new social consumption regulations in December.

Chair Shannon O’Brien, Commissioners Bruce Stebbins, Carrie Benedon, and Kimberly Roy, and Executive Director Travis Ahern issued the following statements following Friday’s vote:

“The Commission made two incredibly important policy changes today that will affect licensees and consumers for years to come,” Chair Shannon O’Brien said. “We’re extending exclusivity for delivery license types because the Commission’s goal of full participation in the industry by people from communities unfairly harmed by the War on Drugs remains unfulfilled. I want to ensure delivery licensees can take advantage of this valuable benefit as they continue to integrate recent policy developments like the Social Equity Trust Fund and the elimination of the two-agent rule. I applaud the work of Commissioner Kimberly Roy for leading the effort to make the necessary changes to Secret Shopper to help invigorate a program that has been underused for too long but will ultimately benefit consumers who deserve the highest possible quality standards.”

“Exclusivity is the most valuable economic incentive the Commission offers to our equity and microbusiness licensees and prospective licensees, and extending the exclusivity period for three more years – with the option to extend again in 2029 – will provide them with the opportunity to build stronger businesses,” Commissioner Bruce Stebbins said. “I want to thank the constituents who made their voices heard during this regulatory process, helping Commissioners make fair and beneficial policy changes.”

“The Commission’s equity goal remains a work in progress, and our reevaluation of exclusivity is part of that work,” said Commissioner Carrie Benedon, who sits in the equity and social justice seat. “Our internal data and the analysis by the UMass Donahue Institute showed that while some goals of the delivery exclusivity period had been met, many had not. I believe extending exclusivity for five more years would have provided more security and opportunity for licensees, but I am hopeful that if three years is not enough, future Commissioners will extend the period beyond 2029.”

“Informed by the Commission’s data and analysis, I support the extension of the delivery license exclusivity period. This decision reflects our commitment to full participation within the evolving cannabis marketplace,” said Commissioner Kimberly Roy. “Almost eight years to the day since the Commission first implemented its Secret Shopper regulations, I am proud that today we unanimously strengthened this program to bring greater breadth and depth to our public health, safety, and consumer protection efforts. These updates have been years in the making, and I am deeply grateful to the current Board for its collaboration and support throughout this process.”

“Following this vote, Commissioners and I will be advocating in front of the Legislature for an expanded budget for the next fiscal year, which will allow us to put more resources into our equity programs and into compliance programs like Secret Shopper,” Executive Director Travis Ahern said. “The Massachusetts cannabis industry recently passed the $9 billion gross sales mark and in the last fiscal year generated nearly $300 million in tax revenue. Now is the time to put resources into our mission of safely, equitably and effectively overseeing the medical and rapidly growing adult-use marijuana industry in the Commonwealth.”

During the delivery exclusivity period, adult-use Marijuana Delivery Courier, Delivery Operator, and Microbusiness with Delivery Endorsement licenses are set aside for businesses with majority ownership made up of  SEPs and EEAs. The initial exclusivity period began on Apr. 1, 2022, which is when the first Delivery Operator license commenced operations. Commissioners extended exclusivity by one year in 2025 to allow for an evaluation of the policy’s success by an agency Working Group in partnership with UMass Donahue Institute. In addition to extending the delivery exclusivity period through April 2029, the proposed amendments would authorize the Commission to further extend the period by vote, at its discretion.

The Secret Shopper Program is one of the agency’s investigations and enforcement tools that allows for individuals to conduct random, off-the-shelf testing of cannabis products, among other initiatives, to ensure consumer health and safety. As approved, the Commission’s regulatory update would allow third-party vendors or contractors—such as nonprofits, research institutions, and other legal entities—to enter into agreements with the Commission to act as secret shoppers.

As of Feb. 12, there are 18 Delivery Operators, nine Marijuana Couriers, and one Microbusiness with a Delivery Endorsement operating in Massachusetts. Additionally, there are 22 Delivery Operators and 15 Delivery Couriers with provisional licenses representing the pipeline of potential new delivery licensees.