Just two weeks after New Jersey passed tough new regulations on intoxicating hemp products, a group of six hemp businesses is fighting back.
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On Monday, these manufacturers, processors, and retailers filed a federal lawsuit asking a judge to throw out the new law. Their argument? The law "recriminalizes" hemp products that are legal under federal law, and as a result, it's causing them "immediate, irreparable financial harm." The businesses, which include Sicklerville-based THC seltzer company LOKI Brands and Springfield retailer Legal Leaf, say the regulations could force them to shut down or lay off workers, despite protections they believe were given to them by Congress.
Adam Terry, CEO and cofounder of Cantrip, a Massachusetts-based hemp beverage company and one of the plaintiffs, said, “Cantrip has done millions of dollars of sales in New Jersey. People love our products, and we believe they deserve access to them. New Jersey could be a billion-dollar hemp THC beverage market, but I don’t know if it would even be worth returning to New Jersey if the entire market is kneecapped.”
Cantrip and other hemp businesses are suing because the new law could pull intoxicating hemp products, like beverages, off store shelves until regulations are finalized. Other plaintiffs include Cycling Frog, Canna Aid, Apollo Sciences, and more. They're asking the court for a preliminary injunction to stop the law from taking effect (except for the part that requires age verification) until a final decision is made. They’re also seeking legal fees.
The roots of this issue go back to 2018, when a federal law legalized hemp, which is defined as cannabis with less than 0.3% delta-9 THC (the psychoactive ingredient in marijuana). That law opened the door for a booming CBD market. But it didn’t take long for entrepreneurs to find ways to create products that were just as intoxicating as weed—like delta-8 THC—while still staying under the legal limit of 0.3% delta-9 THC.
After months of debates among lawmakers and lobbyists, Governor Phil Murphy signed New Jersey’s new hemp law on September 12. It immediately restricted sales of intoxicating hemp products to people over 21 and gave retailers 30 days to pull them off the shelves.
One of the main issues in the lawsuit is the new definition of "intoxicating hemp products." The law sets a stricter "total THC" limit, meaning that any product containing more than 0.5% THC per serving or 2.5% THC per package would be banned. This new standard takes into account not only delta-9 THC but also other cannabinoids like delta-8.
In his statement when signing the bill, Murphy acknowledged that the language might cause "significant confusion." He pointed out that some sections could be interpreted to either exempt intoxicating hemp products entirely or ban any that are made outside New Jersey, potentially creating more loopholes.
The lawsuit also focuses on a section of the law that defines intoxicating hemp products as those “cultivated, derived, or manufactured in this state,” raising concerns about restrictions on interstate commerce. This particular clause could lead to even bigger complications.
The plaintiffs argue that the law creates a “dizzying maze of rules that are far too complicated for ordinary citizens to navigate.” They claim it’s nearly impossible for people to know whether it’s legal to possess or sell certain hemp items under the new regulations.
Some businesses are already scrambling to adjust. One company, Legally Highest, has reportedly reached out to liquor stores with products that they say are “fully compliant with NJ’s new regulations,” according to a letter obtained by the *Asbury Park Press*.
For now, the fate of intoxicating hemp products like THC seltzers in New Jersey hangs in the balance, with the court case likely to shape the future of the industry in the state.
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