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Post: Colorado AG Sues Hemp Company for Alleged Illegal THC Sales

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Colorado AG Sues Hemp Company for Alleged Illegal THC Sales
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Intoxicating hemp products exist in a "backdrop of a complex legal and regulatory framework," according to the state Attorney General. The Colorado Attorney General’s Office has filed suit against a Greeley hemp company and its owner for allegedly selling cannabis products with THC content up to 35 times higher than the legal limit. But the defendant says the AG’s office is blowing smoke.

The suit, filed June 11 in Weld County District Court, alleges that Gee Distributors LLC, doing business as CBDDY , not only sold high-THC edibles, flower and concentrates marketed as hemp and CBD products, but also forged lab analysis documents and failed to ensure that minors weren’t purchasing its products online.

"Defendants’ representations about the contents of their products, including that these products were industrial hemp based on the advertised Delta-9 THC content, were thus false and misleading," the AG claims. "These products were not industrial hemp: they were marijuana."

Through his attorney, CBDDY owner Christopher Eoff strongly denies the allegations, which are part of the first industrial hemp enforcement action ever taken by the Colorado AG’s office — partly because intoxicating hemp is no simple issue.

Save for a 0.3 THC limit, hemp and marijuana are the same plant, but hemp’s federal legalization in 2018 sparked a nationwide market for hemp-derived products with THC that have similar effects to marijuana products sold at licensed dispensaries. These modified and synthetic forms of THC have been available for purchase online , while even bolder entrepreneurs have opened retail outlets selling products they claim to be hemp but are packed with THC.

Popular edibles companies in the licensed marijuana space have launched hemp-derived THC brands, even closing licensed marijuana operations in Colorado to focus on the hemp products. Congress could close that loophole in the next Farm Bill, but the Colorado AG’s lawsuit notes that intoxicating hemp products exist in a "backdrop of a complex legal and regulatory framework."

Federal court decisions have largely upheld intoxicating hemp sales, but law enforcement in other states has raided hemp stores and other retailers for selling unlicensed THC products, and restrictions have already been implemented within Colorado. […]

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