Bee’s Knees CBDs, a cannabis company based in Pueblo, Colorado, has reached a settlement with the Colorado Attorney General's Office and will pay a $225,000 fine following a state investigation into deceptive practices.
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The investigation found that the company made several false claims about its products and practices on its website, including labeling products as “organic” and “Colorado-made,” which the owner, Joseph Leyba, later admitted were inaccurate. Additionally, the company allegedly used expired and altered hemp licenses and testing documents to present its products as compliant with state laws.
Further issues arose regarding the company’s website, which lacked an age verification system, allowing it to sell products with Delta-9 THC levels comparable to those in regulated dispensaries. Bee’s Knees also falsely claimed affiliations with various conservation nonprofits, which were later proven to be fabricated.
Attorney General Phil Weiser highlighted the state’s commitment to a robust regulatory framework for cannabis, emphasizing the importance of consumer safety, proper tracking, and accurate product information. Bee’s Knees has agreed to comply with state law, including implementing age verification, vetting all raw materials, obtaining necessary licenses, and removing any misleading information from its marketing.
Should Bee’s Knees fail to meet the full terms of the settlement, additional fines could raise the total penalty to $495,000.
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