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Inflating the THC Percentages in Your Weed to Get More Sales? – Consumer Fraud Lawsuits Hit the Cannabis Industry, Again.

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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.

Source: https://cannabis.net/blog/news/inflating-the-thc-percentages-in-your-weed-to-get-more-sales-consumer-fraud-lawsuits-hit-the-ca

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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