The suit was filed against DreamFields Brands, Inc. and Med for America, Inc. The companies are accused of inaccurately telling consumers that some cannabis products contained higher levels of tetrahydrocannabinol, or THC, which creates the feeling of being high for people who use the substance.
“Consumers are willing to pay more for cannabis products with higher THC content, and expect to pay less for cannabis products with lower THC content,” Christin Cho of Dovel and Luner, the law firm behind the lawsuit, wrote, per Fox Business. “The complaint alleges that by labeling its products with inflated THC numbers, defendants are overcharging consumers.”
Jasper Centeno and Blake Wilson are the plaintiffs who brought the case and alleged that they purchased “Jeeter” marijuana joints which were advertised as containing high levels of THC. The suit claims that the inaccurate labels have broken several California laws about false advertising.
“Because cannabis consumers generally prefer and are willing to pay more for high-THC cannabis products, declaring that their products have a very high THC content allows Defendants to charge premium rates for their cannabis products,” the lawsuit claimed.
The plaintiffs may have a case, depending on the level of cannabis. According to the California Department of Cannabis Control, “any one cannabinoid, Total THC, and/or Total CBD claimed to be present on a label shall not be considered inaccurate if the difference in percentage on the certificate of analysis is plus or minus 10.0%.”
Jeeter’s labeling reportedly says that its pre-rolled items have around 35% average THC and can have up to 46% in some items. The lawsuit reportedly points to an independent lab examination that found one of the products only had 23% to 27%, while it claimed to have 46% THC.
The companies are “systematically overstating the THC content to deceive consumers into thinking that the effects of their prerolls are more potent than they truly are. This is false and misleading. And, it violates DCC regulations, and California law,” the lawsuit stated.
Cannabis is a multi-billion dollar industry in California. Last year, the state had the most marijuana sales in the country, coming in at $5.7 billion, the Annual Marijuana Business Factbook reportedly noted.
According to the California Department of Public Health, in 2018 17.7% of adults in California said they had used marijuana in the previous thirty days. In the United States, 10.5% of adults reportedly use the substance.
The plaintiffs seek an undisclosed amount in damages and want a jury to be involved.