New Jersey cracks down on cannabis “gifts” before adult sales begin

New Jersey’s chief attorney is taking steps to prevent a cannabis-free economy from developing before the state’s pharmacies are open to adults.

Attorney General Gurbir Grewal and the Consumer Affairs Department have just fired warning letters to four companies offering “free” weed to customers who buy snacks or other groceries. Each of these companies has been advised that they may be violating the state consumer fraud law, which prohibits misrepresentation and deception in the marketplace.

Under new Garden State law, it is now legal for Jersey residents over the age of 21 to own up to six ounces of weed. But until the state gets around to finalizing its retail regulations and licensing statutory dispensaries, the sale of non-medicinal cannabis will remain strictly prohibited. To get around these laws, smart entrepreneurs have started offering “free” weed in addition to buying trivial items.

Slumped Kitchen LLC, one of the companies under investigation, has reportedly shipped “snack” and “munchie” packs of brownies, cookies, and other goodies for $ 150 and up. Of course, the snacks in these packs aren’t really worth hundreds of dollars, but each comes with a “free” gift of either 14 or 28 grams of weed.

The attorney general’s office also sent letters to Sky High Munchies, NJGreenDirect.com, and West Winds Wellness accusing them of running similar gift programs. All four companies have been informed that every single misrepresentation in the sale or advertising of goods constitutes a separate violation of the Consumer Fraud Act. Each violation can be fined $ 10,000 for the first violation and $ 20,000 for each subsequent violation, and multiple violations can affect any company.

“By legalizing adult cannabis in New Jersey, lawmakers have made it clear that they are creating a regulated market with restrictions on how that market works,” said AG Grewal in a statement. “Instead of waiting for these regulations in place, some vendors have chosen to move forward in ways that the law does not allow. Today we make it clear that we will not allow these companies to undermine the regulated cannabis market that lawmakers created or to compete unfairly with properly licensed cannabis companies. “

The idea of ​​the cannabis gift economy really emerged in Washington DC as a direct result of the city’s unusual weed laws. The district voted to legalize personal belongings and use in 2014, but the federal government stopped the city from actually legalizing adult sales. With no other way to sell weed, dozens of gift shops and events have sprung up to fill the void. Vermont faces a similar problem as personal ownership has been legal since 2018, but legal sales won’t begin until next year.

When Virginia legalized adult cannabis this spring, lawmakers were smart enough to explicitly ban cannabis gifting. But in New Jersey, New York, and other states that recently legalized weed, the gift loophole is still there. Without a specific law to prohibit this practice, New Jersey relies on the Consumer Fraud Act to crack down on weed sales in the gray market, and other states must come up with their own solutions.