June 18, 2024 (DENVER) – Attorney General Phil Weiser announced today that his office filed a lawsuit against Gee Distributors, LLC and its owner, Christopher Landon Eoff. The investigation found Eoff’s company, doing business as CBDDY, illegally sold cannabis products marketed as federally legal industrial hemp despite containing THC levels up to 35 times higher than allowed by law. This lawsuit marks the first industrial hemp enforcement action taken by the attorney general.
“Colorado’s legal cannabis regulations are designed to protect consumers, ensure the highest safety and quality standards, and keep cannabis out of the hands of kids,” said Weiser. “In this case, the defendant recklessly sold products that were, in some cases, more potent even than what is sold in state-licensed dispensaries with little regard for requirements like lab testing and age verification. As this action shows, we will hold accountable anyone who evades Colorado cannabis laws.”
In 2018, Congress legalized the limited manufacture and sale of consumable industrial hemp and defined it as containing no more than 0.3% of the psychoactive chemical Delta-9 THC. This policy change spurred an increase in industrial hemp companies attempting to evade state regulations and taxes that would apply to recreational marijuana.
State regulators combat this illegal conduct by requiring companies selling industrial hemp to test their products at one of 12 state-certified cannabis testing labs. The lab issues a certificate of analysis similar to those used for recreational and medical marijuana to provide consumers with valuable information about product content. While legitimate industrial hemp businesses are not required to provide certificates of analysis to consumers, failure to properly disclose the psychoactive content can result in unwanted intoxication, employment issues due to failed drug tests, or unknowingly breaking the law.
According to the attorney general’s lawsuit filed in Weld County District Court on June 11, CBDDY, based in Greeley and primarily operating online during its active period in Colorado, sold edible cannabis products, smokeable cannabis flower, and high-THC concentrates both within Colorado and nationwide. Although the company claimed its products were industrial hemp and “100% compliant” with federal law, analysis revealed THC content far exceeding legal limits.
Investigators also discovered that CBDDY forged or altered certificates of analysis to misrepresent its products as legal. The investigation further revealed failures in age verification for customers and false claims regarding health benefits. Many products were improperly marketed with forms, flavors, and imagery appealing to children.
The attorney general is asking the court to bar the defendants from continuing deceptive marketing practices and to impose civil penalties and restitution for violations of the Colorado Consumer Protection Act. This case represents the first enforcement action under authority granted by the state legislature in 2022.
Consumers who believe companies are engaged in deceptive business practices are encouraged to file a complaint with the attorney general at StopFraudColorado.gov.