Colorado Attorney General Files Lawsuit Against Cannabis Company for Deceptive Marketing and Regulatory Violations
Colorado Attorney General Takes Action Against Cannabis Business
The Colorado Attorney General’s Office has initiated legal proceedings against Gee Distributors, LLC, and its owner, Christopher Landon Eoff. The company, trading under the name CBDDY, faces serious allegations pertaining to the deceptive marketing of cannabis products as legal industrial hemp. This development marks a pivotal enforcement action by the state’s legal authorities.
Deceptive Practices and Health Risks
Investigations revealed that CBDDY’s products contained THC levels up to 35 times the permissible limit of 0.3% THC by dry weight. Despite the excessive THC content, the company falsely marketed its products as 100% compliant with federal law. The misleading marketing strategies included the use of imagery and forms aimed at appealing to children, raising significant public health concerns.
Moreover, CBDDY made unsubstantiated and illegal claims regarding the health benefits of their products, compounding their deceptive marketing practices. These tactics potentially misled consumers, endangering their health and safety by promoting products with high psychoactive content under the guise of legal hemp.
Legal and Regulatory Violations
In addition to the marketing violations, CBDDY also failed to verify the ages of their customers adequately. This negligence is particularly troubling as it potentially allowed minors access to cannabis products. Furthermore, the company’s forging or alteration of certificates of analysis to misrepresent product legality represents a severe breach of trust and regulatory compliance.
This lawsuit is significant as it represents the first enforcement action under the authority granted to the Colorado Attorney General by the state legislature in 2022. The state’s regulations mandate that industrial hemp companies test their products at state-certified labs, ensuring consumer safety and product integrity. Although businesses are not required to share these certificates with customers, undisclosed psychoactive content can lead to substantial consumer harm.
National Impact and Legal Repercussions
CBDDY’s reach extended beyond Colorado, with products sold across the United States via an online platform. This expansive distribution exacerbates the impact of their fraudulent activities, potentially affecting a broad consumer base nationwide. The state’s intervention is thus not only crucial for local residents but also for protecting consumers on a national scale.
The Colorado Attorney General’s Office seeks a court order to halt CBDDY’s deceptive marketing practices. They are also pursuing civil penalties and restitution for violations of the Colorado Consumer Protection Act. These legal actions aim to hold the company accountable and deter similar misconduct within the industry, promoting transparency and consumer safety in the growing cannabis market.
