Colorado’s Lawyer Basic continues to crack down on the state’s hemp corporations, lately settling claims towards one whereas submitting go well with towards one other.

Within the first case, a CBD firm has agreed to pay $495,000 to settle allegations introduced by the state underneath the Colorado Client Safety Act (CCPA). Bee’s Knees Enterprises entered the settlement to resolve claims of misleading commerce practices.

The settlement didn’t require the corporate to confess legal responsibility within the case, through which Bee’s Knees was accused of giving false data concerning its hemp-derived cannabinoid merchandise.

In a separate case, the AG’s workplace filed a lawsuit towards Foxhole Farms, a Mesa County enterprise, for advertising marijuana merchandise as federally authorized industrial hemp.

Lawyer Basic Phil Weiser has leveraged the CCPA to implement compliance within the hemp flower sectors, taking motion the place particular regulatory frameworks could also be missing. The instances underscore the state’s ongoing efforts to implement hashish legal guidelines, safeguard shoppers and defend the integrity of the regulated hashish market, the AG’s workplace mentioned in an announcement.

Allegations of deception

Within the Bee’s Knees case, the allegations stem from practices between 2019 and October 2024, with the state accusing the corporate of misrepresenting the supply, high quality, and chain of custody of its hemp merchandise. The corporate allegedly claimed its extracts got here from licensed Colorado farms and state-approved sources, however lacked the required documentation to assist these claims.

Bee’s Knees was additionally accused of displaying nonprofit group logos on its web site with out permission, falsely suggesting affiliations or contributions. The corporate additionally didn’t implement age-verification programs, permitting minors potential entry to intoxicating hemp merchandise offered on-line.

Corrections required

The corporate should make a fee of $75,000 by Dec. 31, 2024, with further funds scheduled via 2027. A suspended penalty of $270,000 will stay unenforced if the corporate complies with fee phrases and different necessities outlined within the settlement.

The settlement imposes strict compliance and corrective measures. Bee’s Knees should replace its web site to take away false claims and unauthorized logos, keep correct licenses, and set up sturdy age-verification protocols to limit gross sales to minors. The settlement additionally permits the Lawyer Basic’s Workplace to watch and implement compliance, reserving the fitting to take additional motion if phrases are violated.

Foxhole go well with

Within the Foxhole go well with, proprietor Dane Snover faces allegations his firm offered marijuana merchandise mislabeled as federally authorized industrial hemp. The go well with follows an investigation that confirmed that lots of the firm’s merchandise exceeded authorized delta-9 THC limits for hemp and had been falsely marketed.

The Lawyer Basic’s Workplace launched an investigation in 2023 after a criticism from a shopper in one other state alleged Foxhole Farms offered hashish to his 16-year-old son.

Investigators carried out undercover purchases, which revealed merchandise containing THC ranges far above the authorized threshold for industrial hemp – one product examined at almost 250 instances the allowable restrict. The corporate additionally failed to make use of correct age-verification programs, relying solely on a web site immediate for customers to substantiate they had been 21 or older.

Merchandise offered by Foxhole Farms included edibles, concentrates, and flowers, a lot of which had been improperly labeled. Some packaging lacked childproofing, failed to point THC content material, and featured deceptive notices stating the merchandise complied with authorized THC limits. Of the 23 merchandise examined in the course of the investigation, 21 had been misrepresented on the corporate’s web site.

Well being & security dangers

Past THC mislabeling, some merchandise contained hazardous ranges of chemical substances. One merchandise examined contained extraordinarily excessive concentrations of benzene, a solvent banned in hashish manufacturing because of its carcinogenic dangers. Benzene publicity will be significantly dangerous when inhaled, posing extreme well being dangers to shoppers.

“We are going to proceed to carry accountable corporations that attempt to make a fast buck by breaking the regulation,” Weiser mentioned. “When corporations like Foxhole Farms flout rules, they undermine Colorado’s regulated hashish market, endanger shoppers, and make it simpler for youths to entry hashish.”