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A class action lawsuit has been filed by Dovel & Luner, a litigation law firm, on behalf of Californians who purchased 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 name “Lowell Herb Co.” brand, overcharged customers by selling products whose THC concentration was falsely advertised as significantly higher than it was.
The lawsuit, filed in California State Supreme Court, Los Angeles County, alleges that Cypress Manufacturing Company and Lowell Farms violated a number of California consumer protection laws, including state rules on unfair competition and misleading advertising. Lowell Farms advertises primarily on Herb.co, it’s not yet clear whether its lead advertiser, or its CEO Matt Gray, will face an “aiding and abetting lawsuit” for fraud in the same way as Lowell Farms. Facebook’s Mark Zuckerberg has been sued in Europe over the Juicy Fields fiasco.
According to the lawsuit, “Most of the psychological impacts induced by cannabis are caused by THC, which is why customers prefer and seek cannabis products with a higher level of THC. The main factor influencing the demand for cannabis products is their THC content.As a result, cannabis items with higher THC concentrations are significantly more expensive to purchase.
According to the lawsuit, products with an increased concentration of THC command higher prices, which makes sense given that the more active ingredients, the stronger and more satisfying the high will be. But according to the lawsuit, it’s problematic. The deliberate practice claiming high THC content on labels, known as “THC inflation”, unfortunately resulted from the desire for high THC products.
According to California law, the THC content on the label must correspond to the amount actually present in the product with a specific margin of error. In particular, the THC “claimed to be represented on a label” must be accurate to the product’s THC concentration of “plus or minus 10.0%”.
THE ALLEGED OFFENSE/MISCONDUCT
Based on independent lab testing of Lowell products, the actual THC concentration of the products is shown to be significantly lower (well below the allowable 10% margin of error) than stated on the label. The Lowell Smokes Relaxing Indica Hash Infused 3-Pack Preroll, in particular, had a label stating that it contained 38% THC. However, according to independent lab tests, the product actually contained between 18-21% THC, which is significantly lower than what was first reported. As a result, the THC concentration was overestimated by 81-111%, which is significantly higher than the 10% margin of error allowed by California standards.
The Department of Cannabis Control of California oversees marijuana businesses in the state. The organization offers dispensary permits and decides which labels a business can use for products. The Department should therefore look into this company and its products to render a verdict.
FORMER CALIFORNIAN COMPANY SUED FOR LABELING ERROR
Two Local Customers Who Claim a California Cannabis Company Lied About Efficacy of its products filed a lawsuit against the company.
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 allegations of unjust enrichment, willful misrepresentation and false advertising against DreamFields Brands.
The amount of tetrahydrocannabinol, or THC, in Jeeter pre-rolled products made by DreamFields was also a factor in the case.
Pre-rolls do not contain a higher concentration of THC than the average product, according to a claim from attorneys for Centeno and Wilson. DreamFields advertises that its products have higher than average amounts of THC. A Jeeter product that was advertised as having a THC content of 46% was later found to contain 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 higher THC and plan to pay less for lower-potency marijuana products. in THC.
The lawsuit also references a marijuana review conducted by Weed Week in which staff members independently analyzed the THC content of various marijuana products. All Jeeter products were found to have lower THC levels than stated 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 purchase prices of the cannabis items for men in the lawsuit, which is seeking class action status. The couple are seeking hidden damages in their lawsuit.
The Golden State, which has the most enduring legal marijuana legislation in the country, is home to a multi-billion dollar cannabis industry. The Annual Marijuana Business Factbook reports that California sold the most marijuana in the United States last year ($5.7 billion).
CANNABIS COMPANIES AND LAWSUITS
This lawsuit, which relates to misleading advertising in the marijuana industry, appears to be the first in a series of claims brought by Dovel & Luner. A lawsuit was recently filed against VO Leasing Corp. and its presidential brand, as well as against Ironworks Collective Inc. and Stiiizy LLC.
Although not the target of Dovel & Luner, cannabis companies have recently been sued:
In a recent federal class action lawsuit, Trulieve was accused of firing staff members without cause or notice.
Vertical Bliss has been ordered to pay the State of California $128 million for illegally manufacturing millions of cannabis-infused candies following a Los Angeles judge’s ruling.
In one of many class action lawsuits resulting from the mixing 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 receive $150 to $200, depending on the number. consumers who file a complaint.
A lawsuit has been filed by the United States Securities and Exchange Commission against C3 International Cannabis Co.
LOWER RESULT
The cannabis industry in the United States of America is a thriving and rapidly developing industry, with cannabis being about to be legalized by the federal government. People can now legally obtain premium cannabis from dispensaries where available. Some cannabis companies looking to make extra profit are facing lawsuits for mislabeling their products with a higher value because consumers will pay more for a higher level of potency.
INFLATED THC CLAIMS LEAD TO LAWSUITS, READ MORE…
CAN YOU SEE OVER FALSE THC LEVELS? CONSUMERS HAVE LAUNCHED WEED!
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