Lawsuits filed against dispensaries for making false claims

Dovel & Luner, a boutique litigation law firm, has filed a class action lawsuit against Cypress Manufacturing Company and Lowell Farms Inc. on behalf of Californians who purchased cannabis products with false THC content labels. The plaintiffs in this case are people who reside in the state of California. The plaintiffs in the case allege that the defendants, who produce, promote, sell, and distribute cannabis products under the brand name “Lowell Herb Co.,” overcharged customers by selling them goods whose THC concentration was falsely advertised as being significantly higher than it actually was. The defendants produce, sell, and distribute cannabis products under the brand name “Lowell Herb Co.”

In the case that was brought before the State Supreme Court of the State of California in the County of Los Angeles, the plaintiffs allege that the defendants, Cypress Manufacturing Company and Lowell Farms, violated a number of consumer protection statutes in the state of California. These statutes include the state’s regulations on unfair competition and false advertising. There is no word yet as to whether Lowell Farms’ main advertiser, or their CEO Matt Gray, will face a “aiding and abetting lawsuit” for fraud in the same manner that Mark Zuckerberg of Facebook was just recently sued in Europe for the Juicy Fields debacle. Herb.co is Lowell Farms’ primary advertising platform.

According to the complaint, “The majority of the psychological consequences that cannabis induces are driven by THC. As a result, customers prefer and seek out cannabis products that have a higher dose of THC.” The amount of THC that is included in cannabis products is the primary component that drives consumer demand. As a direct consequence of this, the cost of purchasing cannabis products with a greater THC concentration is noticeably higher.

According to the lawsuit, products with a higher THC concentration can attract higher pricing. This makes perfect sense, considering that the higher the concentration of active chemicals, the more potent and pleasurable the high will be. However, according to the lawsuit, this presents a number of difficulties. The demand for products with a high THC concentration has unfortunately led to the development of a practice known as “THC inflation,” which involves voluntarily claiming a high THC content on product labels.

The amount of THC that is listed on the product’s label must, within a certain range of acceptable error, correspond to the amount of THC that is actually present in the product. In specifically, the THC that is “claimed to be depicted on a label” must be accurate to within “plus or minus 10.0%” of the THC content that is actually present in the product.

THE SUSPECTED INFRACTION OR MISTAKE

Independent lab testing of Lowell Goods has showed that the actual THC concentration of the items is significantly lower (far below the authorized 10% margin for error) than what was claimed on the label of the products. This information contradicts the information that was provided by Lowell. Particularly noteworthy was the fact that the label on the Relaxing Indica Hash Infused 3-Pack Preroll sold by Lowell Smokes said that it contained 38% THC. However, the product really contained between 18 to 21% THC, which is a significant decrease compared to what was first stated, as determined by testing conducted in an independent laboratory. Therefore, the THC content was overstated by an amount ranging from 81–111%, which is much more than the 10% margin for error that is permitted by the guidelines in California.

The California Department of Cannabis Control is in charge of monitoring and regulating marijuana companies throughout the state. The agency issues permits for dispensaries and determines the types of labels that a company may use for its products. In order for the Department to render a judgment, it would be necessary for them to investigate this company and the products it sells.

AN OLDER California Company That Was Sued for Incorrect Labeling

Two local consumers have filed a lawsuit against a cannabis company in California, claiming that the company misled about the efficacy of its goods and that the company lied about the efficacy of its products.

Blake Wilson, a resident of Fresno, and Jasper Centeno, a resident of Long Beach, brought a case against DreamFields Brands in state court about two months ago. In the lawsuit, DreamFields Brands was accused of engaging in activities that resulted in unfair enrichment, malicious misrepresentation, and false advertising.

Another aspect in the case was the amount of tetrahydrocannabinol, or THC, that was contained in the Jeeter pre-roll items that were manufactured by DreamFields.

According to the assertions made by Centeno and Wilson’s legal representatives, the pre-rolls do not have a THC concentration that is much higher than that of the typical product. The cannabis products sold by DreamFields are marketed as having THC concentrations that are far greater than the industry standard. According to the lawsuit, it was eventually determined that a Jeeter product had a THC value of somewhere between 23% and 27%, despite the fact that it had been promoted as having 46% THC content.

Christin Cho, an attorney for the plaintiffs, stated in a statement that consumers are willing to spend more money on cannabis products that contain a higher concentration of THC and anticipate paying less for marijuana products that contain a lower concentration of THC.

The lawsuit also makes reference to a marijuana study that was conducted by Weed Week. As part of this assessment, members of the staff had the THC levels of a range of different marijuana products evaluated independently. After conducting tests, it was found that the levels of THC included in all Jeeter products were lower than those that were stated on the labeling. According to the allegations contained in the complaint, DreamFields exaggerated the THC concentration of its products in order to provide a justification for charging its customers a higher price.

In the complaint, Centeno and Wilson asserted that they were overcharged for Jeeter products and that they paid a “excessive price” for them. In the legal action, which is seeking to be recognized as a class action, the purchase prices that the men paid for the cannabis-related items are not included. In their complaint, the couple is seeking compensation for unspecified monetary losses.

The cannabis sector in the Golden State, which is home to some of the nation’s most progressive and long-lasting legalization policies, is worth several billions of dollars. According to the 2017 Annual Marijuana Business Factbook, California had the most annual sales of marijuana in the United States, at $5.7 billion.

CANNABIS BUSINESSES AND LAWSUITS

It appears that this lawsuit, which addresses misleading advertising in the cannabis sector, will be the first in a series of allegations that will be brought up by Dovel & Luner. Relatively recently, a complaint was lodged against VO Leasing Corporation and its Presidential brand, in addition to Ironworks Collective Inc. and Stiiizy LLC.

Cannabis companies have recently been the target of legal action, despite the fact that Dovel & Luner is not among them.

A recent federal class action complaint accused Trulieve of terminating employees without providing a reason or prior notice. The lawsuit was filed in federal court.

As a result of the judgement made by a judge in Los Angeles, Vertical Bliss has been sentenced to pay the state of California $128 million in restitution for the unlawful production of millions of sweets containing cannabis-infused edibles.

Curaleaf was ordered to pay $100,000 as part of the settlement in one of the many class-action lawsuits that resulted from the mixing of two very different CBD and THC products. As part of the settlement, approximately 500 people will be receiving between 150 and 200 dollars, depending on the number of consumers who file a claim. The lawsuit was brought about as a result of the blending of two very different CBD and THC products.

The United States Securities and Exchange Commission has filed a complaint against C3 International Cannabis Company in the form of a lawsuit.

BOTTOM LINE

The cannabis sector in the United States of America is one that is flourishing and expanding rapidly, with federal legalization of cannabis being on the verge of being implemented. Cannabis of the highest possible grade can now be purchased openly and legally by individuals from dispensaries. Some cannabis businesses who are looking to make a larger profit are being sued for mislabeling their products in order to give the appearance of more value. This is because customers are willing to pay more for cannabis with a higher degree of potency.