Attorney General Phil Weiser has announced a settlement agreement with Bee’s Knees CBDs, a Pueblo-based cannabis company, and its owner Joseph Leyba. The settlement follows a state investigation that revealed several misrepresentations on the company's website regarding product sources, false claims of organic certification, lack of age verification for sales, and misleading statements about supporting conservation groups. The company will pay a $225,000 fine as part of the settlement.
Weiser emphasized Colorado's commitment to regulating legal cannabis products to ensure safety and proper consumer information. He stated, “In this case, the company misrepresented to their customers the source and nature of their products and sold intoxicating products without verifying the age of customers. This settlement will hold them accountable for those violations of the law and will ensure compliance in the future.”
Bee’s Knees markets industrial hemp extracts online, including both intoxicating and non-intoxicating products. Despite claims that their products are made in Colorado and are organic, these assertions were found to be false by investigators. Additionally, altered and expired hemp licenses were used to falsely represent compliance with legal standards.
The company also lacked an age verification system on its website while selling intoxicating hemp products such as gummies and chocolates containing Delta-9 THC levels similar to those in regulated marijuana dispensaries.
False associations with conservation nonprofits were also discovered on Bee’s Knees' website. These claims have since been removed following confirmation by the attorney general's office.
As part of the settlement terms, Bee’s Knees must comply fully with state laws regarding product representations. The company is required to vet raw materials thoroughly, obtain necessary licenses and permits for cannabis-related business activities, provide documentation upon request within 10 business days, implement age verification on their website, and remove any false claims about their products or nonprofit associations.
Consumers are encouraged to report deceptive marketing practices or other misrepresentations by businesses to the attorney general’s office via StopFraudColorado.gov or by calling 1-800-222-4444.