Retailers in the cannabis accessory market are raising concerns about preferential treatment from Shopify towards actor Seth Rogen’s brand, Houseplant. Allegations suggest that Shopify allows Houseplant to utilize its payment processing system, while denying access to other similar retailers.
Seth Rogen’s Houseplant Brand
Houseplant, launched by Rogen, offers a variety of cannabis-related products, including ashtrays, grinders, and rolling papers. The brand recently celebrated processing over 100,000 orders on the Shopify platform. At a New York event, Shopify president Harley Finkelstein publicly recognized Rogen for this achievement.
Claims of Double Standards
- Shopify began allowing cannabis businesses on its platform in 2018.
- Restrictions remain for certain cannabis products, including hemp, CBD, and THC.
- Some retailers accuse Shopify of inconsistently enforcing its policies.
Justin Johnson, co-founder of Chill Steel Pipes, expressed frustration over being unable to process payments via Shopify Payments. Instead, his company must rely on a costlier third-party payment processor. He highlighted that Houseplant seems to navigate terms in a manner that allows it access to services denied to others.
Regulatory Compliance Issues
According to Shopify’s policies, products needing regulatory approval are prohibited from using Shopify Payments. This restriction creates disparities among cannabis accessory retailers. For instance, Another Room, a Toronto-based store, is similarly barred from processing its orders through Shopify Payments. The company faces additional fees for transactions processed through alternative payment methods.
Concerns About Social Media Restrictions
Many retailers, including Johnson, have been told they must limit cannabis references online to qualify for Shopify services. In contrast, Houseplant promotes THC-infused beverages and engages in cannabis dialogue on social media. Such disparities have drawn criticism over fairness in ticket access to resources.
Looking for Equity in the Marketplace
As Johnson deliberates his next steps, he recognizes the economic impact of Shopify’s payment processing limitations. He calculates that for businesses generating a million dollars in sales, the additional fees could amount to $20,000 annually. This financial burden weighs heavily on retailers seeking to compete.
Both Johnson and fellow retailers advocate for a more cohesive standard among all businesses. They emphasize the need for equitable access to payment services for both celebrity brands and smaller enterprises. The ongoing dialogue stresses fairness and the importance of supportive measures for all operators in the cannabis accessory sector.
