The District of Columbia has developed an unusual approach to the cannabis industry.

Medical cannabis has been legal in Washington D.C. for almost 20 years, but a ballot initiative in 2014, also known as the Legalization of Possession of Minimal Amounts of Marijuana for Personal Use Initiative, allowed limited possession and cultivation of cannabis.

Compared to the other eight states that have legalized social cannabis, it is still not allowed to buy or sell the drug on public grounds in the District of Columbia.

When customers walk in a clothing shop in Washington D.C., they may spend up to $45 for an ordinary t-shirt, and leave the shop satisfied. That’s because the purchase comes with a free “gift,” a small amount of cannabis. The clerk drops a clear plastic bag box containing about one ounce of cannabis, into the bag and thanks the customer saying, “Here’s a gift for you to have as a souvenir.”

This new area is called the District of Cannabis, a unique legal and commercial space that uses the “gifting” loophole. These thriving businesses sell everything from coffee cups, to artwork, and they are all overpriced products that boost something extra.

“It’s definitely unique,” Morgan Fox, from the pro-legalization Marijuana Policy Project, said. “The DC city council and the city government don’t want to be busting people for weed. They want this to work and work smoothly.”

After the initiative passed, Andy Harris, member of the conservative Freedom Caucus, opposed efforts to legalize cannabis by introducing an amendment in 2015 that gave the federal government more control over the District’s cannabis laws.

His amendment prohibited the city from passing additional laws to legalize and regulate the sale of cannabis. As the District of Cannabis emerged, Harris still maintained a strong opposition toward the legalization of cannabis sales.

The gift loophole isn’t the only novelty in the District. There are now hundreds of cannabis-themed public events taking place across the city. The Cannemia event, for example, is a businesslike trade show that offers a variety of edibles for the public.

Despite the new trend, the District’s Mayor Muriel Bowser said she set clear lines on what is allowed within the district, and the police will still watch out for cannabis violators.

The gift loophole is currently working, however, both legalization activists and members of the District’s government are not too enthusiastic. They highlight that even though the District has legalized cannabis, it has not been able to regulate it properly.