A British Columbian court rules against Vancouver for advertising psychedelics in a store

A B.C. judge recently ruled that the City of Vancouver failed to prove that a shop advertising psychedelic mushrooms for sale was selling illegal products, but found the store guilty of ignoring a municipal order to cease operating as a mushroom dispensary.

The case revolves around the Medicinal Mushroom Dispensary, a business that was raided by police in 2023 for allegedly selling illegal drugs, a federal offence.

Following the raid, the City of Vancouver issued an order for the shop to shut down.

However, the shop continued its operations, leading to a legal challenge that has highlighted the complexities and grey areas in the enforcement of bylaws related to such dispensaries.

Judge Aamna Asfar, who presided over the case, stated that while it was possible the shop was selling mushrooms containing psilocybin, the psychoactive compound found in magic mushrooms, the city did not meet the necessary burden of proof.

“It is possible that the mushrooms being sold included illicit substances like psilocybin or psilocin; it is even likely.

However, a possibility or a probability does not meet the standard of proof,” Judge Asfar wrote in her decision on July 25. She emphasized that there was no evidence showing that a city inspector had purchased, tested, or confirmed the contents of the products being sold by the dispensary.

As a result, the judge ruled that the City had not established that the business was operating without a valid licence and found the defendants not guilty on that charge.

The shop's operators argued that they had a valid business licence and were in compliance with its terms, selling retail items such as clothing and books.

They also claimed that selling mushrooms should be considered retail sales, which does not require a new development permit.

On the other hand, the City of Vancouver maintained that there is no licence category for a mushroom dispensary since selling products containing psilocybin is illegal under federal law.

The City argued that it was sufficient to demonstrate that the store was offering psilocybin for sale, regardless of whether or not the products were actually tested.

The case, still ongoing, awaits a sentencing date, and City officials have declined to comment further, citing the pending court proceedings.

The Medicinal Mushroom Dispensary, located at 651 East Hastings Street in Vancouver’s Downtown Eastside, was first investigated on February 28, 2022, by property use inspector Alvin Leung.

During his inspection, Leung reported seeing a large sign outside the shop advertising various substances, including “mushroom dispensary, psychedelics, coca leaf, kratom, peyote, LSD, DMT,” according to court records.

The case involving the Medicinal Mushroom Dispensary in Vancouver sheds light on the challenges faced by municipal authorities in regulating businesses that operate in legal grey areas.

The business, which advertised and possibly sold psychedelic substances, was subject to a police raid in 2023 and subsequent legal actions by the City of Vancouver.

Alvin Leung, a property use inspector for the city, visited the shop multiple times, observing signs both outside and inside the store that indicated the sale of various psychoactive substances, including mushrooms, peyote, kratom, LSD, and DMT.

Despite the apparent focus on these substances, Leung did not purchase or test any of the products to confirm their contents.

Based on his observations, the city's chief licence inspector issued an order on March 8, 2022, requiring the shop to cease operating as a mushroom dispensary and to remove all related materials within 14 days.

However, the business continued to operate in defiance of this order, prompting further legal action.

In her ruling, Judge Aamna Asfar noted that while the city's inspector had gathered substantial evidence indicating the shop's operations, the city failed to meet the legal burden of proof to show that the products sold contained illegal substances like psilocybin.

As a result, the court did not find the business guilty of selling illegal drugs.

However, the judge did find the business guilty of continuing to operate in defiance of the city's order.

Judge Asfar emphasized that ignoring a municipal order is not a lawful course of action and compared it to continuing to drive despite a driving prohibition without challenging it through proper legal channels.

The case highlights the difficulties in enforcing bylaws related to businesses operating in contentious areas, particularly when the sale of certain substances is involved.

The outcome also underscores the importance of gathering conclusive evidence when seeking to prove the sale of illegal products in court.

In May 2023, the Medicinal Mushroom Dispensary in Vancouver had its business licence suspended for allegedly selling illegal substances.

Despite the suspension, the shop continued to operate and was later subjected to a police raid in November 2023, along with its other locations on Broadway and Granville Street.

In a controversial move, two Green Party Vancouver City councillors, Pete Fry and Adriane Carr, reinstated the shop's licence during a special meeting on March 5, 2024.

Councillor Pete Fry defended the decision by pointing out that the shop owner had not been technically convicted at that time.

He also drew a parallel to 2015, when the city permitted cannabis stores to operate even before full legalization, noting that there were many businesses in Vancouver selling mushrooms.

Councillor Adriane Carr supported the decision on the grounds of promoting a "safe" supply over "street supply," which she emphasized in a social media post.

However, the decision faced criticism from Vancouver's Mayor Ken Sim, who expressed disappointment, stating that the city inspector's original decision to suspend the shop's licence was "appropriate."

This incident highlights the ongoing tension and differing views within the city regarding the regulation and legalization of substances like psilocybin.