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FWIW, most of those are not selling actual drugs; they're just scamming tourists. For example, the hashish they sell is actually a pressed laurel plant. Not only it's much cheaper for them, as they avoid the cops, since it's not a crime to sell laurel even under a false name.

Well... the thing is those guys really only approach foreigners. I am sorry for your experience, but as a nearly 30y old Portuguese who lives and works in Lisbon, I had that only happen to me once, and it was while speaking in English with a visiting friend.

Can confirm, had a vacation in Portugal this spring and every day in a big cities (Lisbon, Porto) was offered drugs multiple times. Very unpleasant experience.