Business
Inflating the THC Percentages in Your Weed to Get More Sales? – Consumer Fraud Lawsuits Hit the Cannabis Industry, Again.
Consumers may want to highest percentage THC they can get, but they could get brands in trouble, too.
A class action lawsuit was filed by Dovel & Luner, a boutique litigation law firm, on behalf of Californians who bought cannabis products with false THC content labels against Cypress Manufacturing Company, and Lowell Farms Inc. The claim in the case is that the defendants, who produce, promote, sell, and distribute cannabis products under the “Lowell Herb Co.” brand, overcharged customers by selling them goods whose THC concentration was falsely advertised as being significantly higher than it was.
The lawsuit, filed in the State Supreme court of the State of California County of Los Angeles, claims that Cypress Manufacturing Company and Lowell Farms, violated a number of California consumer protection statutes, including the state’s rules on unfair competition and false advertising. Lowell Farms advertises mainly on Herb.co, no word yet if their main advertiser, or their CEO Matt Gray, will face an “aiding and abetting lawsuit” for fraud in a similar fashion as Mark Zuckerberg of Facebook was justed sued in Europe for the Juicy Fields fiasco.
According to the lawsuit, “Most of the psychological impacts that cannabis induces are caused by THC, hence customers prefer and seek out cannabis products with a higher level of THC. The main factor influencing demand for cannabis products is their THC content. As a result, cannabis items with higher THC concentrations are markedly more expensive to buy.
According to the lawsuit, goods with increased THC concentration command higher prices, which makes sense given that the more active ingredients there are, the more strong and more satisfying the high will be. But according to the lawsuit, it is problematic. The practice of purposefully declaring a high THC content on labels, known as “THC inflation,” has unfortunately resulted from the desire for high-THC goods.
According to California law, the THC content on the label must match the amount that is really in the product by a specific margin of error. In particular, the THC “claimed to be represented on a label” must be accurate to the THC concentration of the product to “plus or minus 10.0%.”
THE ALLEGED OFFENCE/MISDEED
According to Independent lab testing of Lowell Products, it is shown that the actual THC concentration of the products is considerably lower (far below the permitted 10% margin for error) than what was stated on the label. The Relaxing Indica Hash Infused 3-Pack Preroll from Lowell Smokes, in particular, had a label that stated it contained 38% THC. However, according to independent lab testing, the product really contained between 18 and 21% THC, which is significantly less than what was first reported. Accordingly, the THC concentration was overestimated by 81–111%, which is significantly greater than the 10% margin for error permitted by California standards.
The Department of Cannabis Control of California oversees marijuana businesses in the state. The organization offers dispensary permits and decides what labels a business can use for products. So the Department would have to look into this company and its products to give a verdict.
A PREVIOUS CALIFORNIA COMPANY SUED FOR MISLABELLING
Two local customers who claim that a California cannabis company lied about the effectiveness of its products filed a lawsuit against the corporation.
Two months ago, Blake Wilson of Fresno and Jasper Centeno of Long Beach filed a lawsuit against DreamFields Brands in state court. The lawsuit included claims of unjust enrichment, deliberate misrepresentations, and false advertising against DreamFields Brands.
The amount of Tetrahydrocannabinol, or THC, in the Jeeter pre-roll goods made by DreamFields, was also a factor in the case.
The pre-rolls do not contain a higher concentration of THC than the average product, according to a claim made by Centeno and Wilson’s attorneys. DreamFields advertises its products as possessing higher than the average quantities of THC. A Jeeter product that was advertised as having 46% THC content was later discovered to have somewhere around 23% and 27%, according to the lawsuit.
In a statement, plaintiffs’ attorney Christin Cho argued that consumers are willing to spend more for cannabis products with more THC and anticipate paying less for marijuana products with lower THC levels.
The lawsuit also makes reference to a marijuana review done by Weed Week in which staff members had a variety of marijuana products’ THC contents independently analyzed. All Jeeter products were discovered to have THC levels that were less than those listed on the labels after testing. In order to justify charging customers more, the complaint alleges that DreamFields inflated the THC content of its products.
In the filing, Centeno and Wilson claimed they were overcharged and paid a “high price” for Jeeter products. There is no mention of the men’s purchase prices for the cannabis items in the lawsuit, which is requesting class-action status. The couple is claiming hidden financial damages in their lawsuit.
The Golden State, which has the nation’s most enduring legal marijuana legislation, is home to a multibillion-dollar cannabis industry. The Annual Marijuana Business Factbook reports that California sold the most marijuana in the US last year ($5.7 billion).
CANNABIS BUSINESSES AND LAWSUITS
This action, which concerns deceptive advertising in the marijuana industry, looks to be the first in a line of claims brought by Dovel & Luner. A complaint was recently made against VO Leasing Corp. and its Presidential brand, as well as against Ironworks Collective Inc. and Stiiizy LLC.
Despite not being the target of Dovel & Luner, cannabis companies have lately been sued:
In a recent federal class action lawsuit, Trulieve was accused of firing staff members without cause or prior notice.
Vertical Bliss was ordered to pay $128 million to the state of California for the illegal manufacturing of millions of cannabis-infused candies as a result of a Los Angeles judge’s ruling.
In one of many class-action lawsuits resulting from the blending of two very different CBD and THC products, Curaleaf was ordered to pay $100,000 as part of the settlement in which approximately 500 people will be receiving 150 dollars to 200 dollars, dependent on the number of consumers who file a claim.
A lawsuit has been brought by the US Securities and Exchange Commission against C3 International Cannabis Co.
BOTTOM LINE
The cannabis industry in the United States of America is a rapidly developing and successful industry with cannabis on the brink of federal legalization. People can now legally get top-quality cannabis from dispensaries where available. Some cannabis companies seeking to make an extra profit are facing lawsuits for mislabelling their products giving them higher value since consumers will pay more for a higher level of potency.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
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