Cannabis is no longer an underground industry. That means a lot of things, like the fact that making false claims about a product no longer flies. RAW Papers parent brand HBI International and its founder, Josh Kesselman, have learned that the hard way. The company has promoted its non-profit The RAW Foundation for years, and also asserted that Kesselman invented the paper cone. Now, multiple courts have found this and other claims made by the brand to be false.
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Republic Brands, a competitor, took RAW to court over deceptive marketing claims. The lawsuit was brought before a jury in 2023 that found HBI violated the Illinois Uniform Deceptive Trade Practices Act. The jury also ruled that the rolling paper brand engaged in unfair marketing practices. Federal courts recently had a say, and the injunction will be upheld at a national level.
Republic Brands CEO Don Levin expressed in a press release that this case is a positive for everyone, not solely RAW competitors.
“It’s a win for all rolling paper consumers who expect and deserve truth in advertising from the brands they purchase,” said Levin. “As the world’s largest manufacturer of rolling papers and smoking accessories, we take our role as leaders seriously.”
In 2023, the United States District Court for the Northern District of Illinois ruled that HBI and RAW must stop making false claims about its alleged charity work, place of origin, and more. The court issued a permanent injunction against making seven claims previously prominently listed on packaging and other marketing materials. HBI has been fighting ever since to keep the injunction confined to Illinois state lines.
As of this week, the U.S. Court of Appeals for the Seventh Circuit issued a nationwide permanent injunction against seven allegedly false claims. Courts have ruled that the RAW Foundation is non-existent and RAW organic papers are not made in Alcoy, Spain. These paper products are not made with natural hemp gum or “unrefined” as promised, nor are they the world’s “first” or “only” organic hemp rolling papers as the packages state. The papers are not made using wind power, and Kesselman did not invent paper cones.
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HBI International can no longer sell products advertising these statements anywhere in the U.S. following the permanent injunction. Neither RAW, HBI, nor Kesselman responded to a request for comment..
Republic Brands expressed gratitude for a rolling paper market based on reality.
“We’ll continue to fight for a level playing field where all parties act in good faith and engage in honest marketing and advertising practices,” Levin concluded in the release.
