United States: CBD And Hemp Legal And Regulatory Roundup – December 7, 2021

Welcome to our weekly roundup of CBD and hemp-related legal and regulatory news:

CBD

CBD products company sued for failing to provide accessible website

Rasheta Bunting filed the  lawsuit on behalf of all legally blind individuals within the U.S. who have attempted to access Prospect Farms Hemp Sales' website but were unable to due to the website's limitations. The plaintiff contends the website isn't designed to be fully accessible and that the CBD products company is therefore denying blind and visually-impaired individuals equal access to its goods and services. She brings one count against Prospect Farms for violation of the Americans with Disabilities Act and three counts under N.Y. state and New York City laws. In addition to compensatory damages, Bunting is seeking a permanent injunction requiring the company to make its website ADA-compliant.   Law 360 (sub. req.)

Study finds more than half of tested products listed wrong CBG levels

Leafreport found 53% of the 38 products tested contained the wrong amount of CBG, with product amounts off by 10.4%-64.7%. Further, out of 24 products advertised to carry a specific amount of CBG and CBD, 29% were accurate for CBG but not CBD and 33% were accurate for CBD but not CBG. Only 17% of products were accurate for both CBD and CBG labels. Other findings include topicals were the least accurate product category, though all 15 of the products advertised to contain broad or full-spectrum CBD had the right type of extract. Leafreport also found products from leading brands performed better than those made by small companies.   Leafreport

Requirements for taking CBD across state lines for travel

While transporting marijuana across state lines isn't allowed, since it's not been legalized on a federal level, travelers can still bring cannabis-infused products, like CBD, as long as they contain under 0.3% THC. As with hygienic products, the TSA requires any products brought in carry-on luggage not to exceed 3.4 oz and be stored in a resealable, clear 1-quart bag. Anything greater than 3.4 oz has to be stowed away in checked luggage. CBD products also don't need to be declared at the airport during domestic travel as they are federally legal.   Forbes

Hemp

DEA urges D.C. Circuit to toss challenges over rule governing hemp product manufacturing

In a  brief filed in an appeal, the DEA argues the challenges to the 2020 rule raised by appellants Hemp Industries Association and S.C.-based CBD seller RE Botanicals should be dismissed on the merits and for lack of standing. In a  brief in a separate but related appeal, the agency pushed back against the appellants' legal strategy of asking a federal district judge for a declaratory judgment that hemp byproducts fall outside the ambit of the Controlled Substances Act and therefore beyond DEA authority. The DEA contends such reviews of final agency action need to go to the circuit courts of appeals, and that the lower court was right to dismiss the complaint in May for lack of jurisdiction.   Law 360 (sub. req.)

Charter plane co. loses bid to escape suit over destroy hemp shipment

Judge Frank D. Whitney in the U.S. District Court for the Western District of N.C.  denied Planet Nine Private Air's motion to dismiss a lawsuit brought against it by We CBD over a destroyed shipment of nearly 2,800 pounds of hemp. He rejected Planet Nine's argument that his court lacked personal jurisdiction, ruling it's "not unconstitutionally unreasonable or unfair" to have the charter plane company resolve its legal affairs in his court given that it had sufficient business dealings with the N.C. hemp company. The case stems from a contract between the parties that would have seen hemp shipped from Ore. to Switzerland, with a refueling stop in Charlotte, N.C. Planet Nine contends the plane was detained in Charlotte and inspected by U.S. Customs and Border Protection, which then destroyed part of the cargo because it had tested over the legal THC limit. However, We CBD claims Planet Nine didn't file the necessary documents that would have prevented the destruction of hemp by authorities.   Law 360 (sub. req.)

Survey finds divide over whether Delta-8 THC should be regulated as hemp or cannabis

The findings of a recent Cannabis Business Times/Hemp Grower survey are indicative of the conflicting attitudes in both the hemp and state-legal cannabis industries surrounding Delta-8 THC. Just over half (51%) of the respondents indicated the cannabinoid should be produced and sold in the hemp marketplace, while 59% said it should be produced and sold in the cannabis marketplace. Responses yielded similar results when broken down by those who work in the hemp industry and those who work in the cannabis industry. When asked about regulations addressing Delta-8 THC production and/or sale, the most common response was that no additional regulations are needed. The second-most popular answer was that it should be regulated like state-legal cannabis or, more specifically, Delta-9 THC. Other popular responses included implementing testing, production and purity standards for finished products to ensure consistent products and safety among consumers.   Hemp Grower

Cannabis

S.D. high court strikes down recreational cannabis ballot initiative

Amendment A, a ballot initiative to legalize recreational adult-use cannabis that passed with 54% of the vote, was struck down by S.D.'s Supreme Court in a 4-1  decision. The high court agreed with two law enforcement officers, who had the backing of Gov. Kristi Noem, that the measure violated the state's single-subject rule, which holds that ballot measures can only ask voters to weigh in on one issue at a time. The amendment included provisions touching on the regulation of hemp and requiring laws providing medical marijuana patients' access to cannabis, which the court said were unconstitutional. South Dakotans for Better Marijuana Laws defended the multipronged amendment, arguing it set out to create a coherent regulatory scheme for adult-use marijuana. The advocacy group is currently in the process of collecting signatures to put another legalization question on the ballot for Nov. 2022.   Law 360 (sub. req.)

Ill. judge consolidates another nine cannabis licensing challenges

Despite an objection from one business, Cook County Judge Moshe Jacobius  granted the Ill. Department of Financial and Professional Regulation's motion to combine the nine additional cases with several already consolidated cases involving the state's recent award of cannabis business licenses, saying there are "ample common issues of fact and law." He found each case centers on redoing all or some of the lotteries used to distribute the licenses. The judge wasn't persuaded by Well-Being Holistic Group's argument that it wouldn't be able to assert certain additional claims it brought if the cases are consolidated. Judge Jacobius also severed WAH Group from a joint complaint it filed with Haaayy and brought Haaayy into the newly consolidated case. He said the two businesses had later filed amended complaints seeking different relief and that there were two separate cases under one case number.   Law 360 (sub. req.)

Nev. pot dispensary could lose licenses, face fine for violating regulations

The state Cannabis Compliance Board filed a complaint for disciplinary action against the Harvest Foundation for allegedly violating multiple state regulations and statutes provisions since its medical and adult-use cultivation licenses initially expired on June 30. Those violations included failure to properly secure its growing facilities, destruction or removal of security cameras and footage, and failure to report theft of dozens of cannabis plants. The CCB is seeking revocation of Harvest's licenses and a civil penalty of $487,500.   Law 360 (sub. req.)