The cannabis industry has grown and changed rapidly since its inception. It started in a grey area, intertwining federal and state laws into industries that were legal with air quotes. This has bred an interesting combination of wily entrepreneurs and heft compliance regulations, which, in some cases, may have led some brands to orchestrate ways around the laws.
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A recent complaint filed in the U.S. District Court for the District of Arizona alleges Trulieve did just that. The first step in a class action effort claims that the multi-state operator put consumers at risk of ingesting more THC than the legal 10 milligram (mg) dose.
“Plaintiff and other consumers were being misled to believe that they were purchasing a legal marijuana product that complies with statutorily imposed limits, featuring the required labels, warnings, and packaging. This deception continues to this day,” the complaint reads.
Details on the Trulieve class action complaint
A Maricopa County resident named Erik Watt filed the complaint against Trulieve Holdings Corp. and a handful of dispensaries and producers. The class action initiation asserts that the company intentionally skirted potency laws for edibles by packaging them as concentrates.
The complaint names a few products sold by Trulieve under third-party brand names, including potent Rick Simpson Oil (RSO) and Full Spectrum Hash Oil (FSHO). Both are referred to as “edible oil” and sold as concentrates, the complaint states. It also cites some edibles that are advertised on packaging and the website as having more than the regulated THC dose.
In Florida, the law states edible packages can contain no more than 200 mg of THC in total, with 10 mg servings. The maximum per pack is 100 mg in Arizona and 10 mg per piece. Baked Bros Brix, named by the plaintiff, has 1000 mg inside each bag in the form of two 500 mg gummy candies. The recommended dose on the Baked Bros site is 50 mg, and it directs the user to multiple Arizona dispensaries where these are sold.
The complaint also lists JAMS Jellies (50 mg per piece), XBites (two 50 mg pieces), Tipsy Turtle Sand Dollar (one 100 mg piece perforated into ten 10 mg pieces), Power Puck Gummy (one 110 mg gummy intended to be split four ways), and Krispie Fruits (three 100 mg). The plaintiff alleges that these products violate the regulations and have been sold across 22 Arizona dispensaries and 162 Florida dispensaries.
While most packages contained more than 100 mg of THC, not all did. And, while the Tipsy Turtle product was one 100 mg piece, it is perforated for consumers. There is a lot to consider regarding dosage, consumer protections, intention, and more to determine which way the scale of justice should sway on this one.
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This is the first phase of the potential class action lawsuit. Next, a court will review the motion and verify if it meets the requirements for a full suit. If they determine it does, the court will certify the impacted class and inform members that they can opt in or out. GreenState reached out to Trulieve and lawyers on both sides of the complaint, but none responded before publishing.
While still in its early stages, the complaint may mark the official end of the grey area. Similar lawsuits have been filed in Illinois and California, and other firms are currently collecting class members for similar class action efforts.
As cannabis hits its class action lawsuit era, everyone had better button up their “wink-wink” practices and start playing ball with American commerce. After all, this country ranks highest for most lawsuits filed annually.
