The hemp industry continues to boom, even in states in which marijuana is illegal. In an attempt to keep up, lawmakers are beginning to crack down, threatening the livelihoods of retailers across the country. The most recent of these events occurred in Nebraska, where more than 82 hemp retailers received cease-and-desist letters on June 18.
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To date, 204 cannabis stores in Nebraska have received cease-and-desist letters. According to Nebraska Attorney General Mike Hilgers, these stores violated the Consumer Protection, Uniform Deceptive Trade Practices, and Nebraska Pure Food Acts by mislabeling their products.
In a press release, Hilgers said that both his office and that of the Sheriff made purchases from stores owned by 39 companies, and “each store investigated had at least one product marketed as hemp, which actually had a delta-9 concentration over the legal limit, making it marijuana.” They claim that over 90 percent of the products tested were incorrectly labeled.
Many of these stores had tobacco licenses, and their selling of THC products puts those licenses at risk. Federally, hemp is defined as cannabis that contains less than 0.3 percent THC by dry weight. However, perceived loopholes in the Farm Bill have led to a proliferation of intoxicating hemp products.
Hilgers demanded that each of the stores sign documents to voluntarily cease all sales of THC products, and if they do not within 30 days, they will face litigation. The sale of cannabis in Nebraska is a felony, punishable by up to 20 years and a maximum fine of $25,000.
In March, after sending 104 cease-and-desist orders in Omaha, Hilgers said he plans to seek “maximum penalties and fines against retailers selling noncompliant products containing intoxicating hemp derivatives, including up to a $4,000 fine for each individual sale of a noncompliant product.”
“This industry has shown itself to be completely irresponsible. It operates without regard to the health or safety of Nebraskans by selling these poisonous and mislabeled products into the Capital City,” said Hilgers in his press release. In March, he was quoted as saying, “We promised that we would escalate our fight, and today we are fulfilling that promise.”
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Nebraska legalized medical marijuana last November, but the bill has seen no further progress since then. Hilgers has led opposition to the initial ruling, claiming that the measure was not placed properly on the 2024 ballot.
The Cornhusker State has made its stance on hemp clear, and the state’s government shows no sign of slowing down anytime soon. Retailers in the state may want to explore other options so as not to face legal consequences.