Debra BorchardtColorado Attorney General Phil Weiser filed a lawsuit this week against Gee Distributors, LCC, and its owner, Christopher Landon Eoff, after an investigation found Eoff’s company was illegally selling cannabis products marketed as federally legal industrial hemp even though the products contained up to 35 times higher THC levels than allowed by law.
Too much THC
Legal hemp is allowed to have .3% of THC as per the 2018 Farm Bill. However, that loophole has been exploited and sparked an industry of intoxicating hemp products, which aren’t tested or regulated.
The company, CBDDY, is accused of forging or altering certificates of analysis to misrepresent its products as legal. The Attorney General’s investigation also revealed the company failed to verify the age of customers properly and made false and illegal claims of health benefits. Many of the company’s products are also improperly marketed in forms, flavors, and imagery designed to appeal to children.
“Colorado’s legal cannabis regulations are designed to protect consumers, ensure the highest safety and quality standards, and keep cannabis out of the hands of kids,” said Weiser. “In this case, the defendant recklessly sold products that were, in some cases, more potent even than what is sold in state-licensed dispensaries with little regard for requirements like lab testing and age verification. As this action shows, we will hold accountable anyone who evades Colorado cannabis laws.”
CBDDY sells its products online and claims they are compliant with federal law. However, the investigation determined the THC levels were far higher than the legal limits.
Industrial hemp producers must test their products at state-certified labs that issue a certificate of analysis. Industrial hemp companies aren’t required to provide these certificates to consumers, however, they are legally required to inform consumers of any psychoactive content.
According to its statement, the attorney general is asking the court to bar the defendants from continuing to deceptively market their products and to pay civil penalties and restitution for their repeated violations of the Colorado Consumer Protection Act.
Potential hemp law changes
Colorado is following in the footsteps of many other states as they try to address the issue. The 2024 Farm Bill currently under review is facing an amendment that would end the loophole and not allow any level of THC in hemp.
The issue of intoxicating hemp is very divisive within the cannabis community. Some regulated cannabis companies see it as a competitive threat, while others have ceded to having these products in their portfolios in order to bring in more revenue. The lack of regulations make the product fairly lucrative.
