A Sioux Falls Storefront Is Selling “Cannabis” Without a South Dakota Cannabis License

By Jason Karimi – WeedPress / SD Cannabis Ledger

A retail storefront operating at 825 South Minnesota Avenue in Sioux Falls presents itself to the public as a cannabis dispensary.

It uses marijuana branding.

It advertises cannabis.

It invites walk-in customers.

But it does not hold a South Dakota medical cannabis dispensary license.

Which means — under South Dakota law — it is not legally authorized to sell marijuana.

The business operates under the name “The Cannabis Factory.”

What the Storefront Is Communicating to the Public

The storefront uses:

• marijuana leaf branding

• cannabis trade dress

• the word “cannabis” in its business name

• retail walk-in service design

• dispensary-style window layouts

To an ordinary consumer, this communicates one thing:

“This is a cannabis dispensary.”

But South Dakota law does not recognize unlicensed cannabis dispensaries.

South Dakota Law Does Not Allow This Retail Model

South Dakota law only permits marijuana sales through:

• Department of Health licensed medical dispensaries

• state seed-to-sale tracked inventory

• patient card verification

• mandatory lab testing

• regulated packaging and labeling

• compliance audits and inspections

Any retail cannabis sales outside that framework are not legal marijuana commerce.

There is no alternative category that authorizes public walk-in cannabis storefronts.

Why Hemp Law Does Not Create a Dispensary Loophole

Hemp law does not authorize:

• marijuana-style dispensaries

• high-THC intoxicating flower sales

• marijuana-branded retail cannabis shops

• THC sales exceeding statutory limits

Hemp stores are not allowed to operate as marijuana dispensaries — in branding, in function, or in product presentation.

This Creates an Unregulated Cannabis Market

When storefronts operate as cannabis dispensaries without licenses:

• no lab testing is verified

• no seed-to-sale tracking exists

• no regulatory inspections occur

• no Department of Health oversight applies

• no patient verification is required

Which means consumers are purchasing cannabis-branded products outside the state’s medical cannabis safety system.

Why This Matters

Licensed medical dispensaries invest heavily in compliance, testing, tracking, and regulation.

Unlicensed storefronts bypass all of it — while visually presenting themselves as legitimate dispensaries.

That is not harmless.

It undermines:

• patient safety

• regulatory integrity

• consumer transparency

• legitimate operators

• public trust

South Dakota law is narrow and explicit.

There is no legal category for unlicensed marijuana storefronts — regardless of what signage, branding, or marketing they use.

A business may sell hemp-derived products within the hemp law.

But it may not operate as a cannabis dispensary — in appearance or in function — without a cannabis dispensary license.

The law either applies consistently — or it doesn’t.

And this storefront raises serious questions