A group of licensed marijuana companies in Washington, D.C., has filed a federal lawsuit in a last-ditch attempt to hold several unlicensed marijuana dispensaries and their landlords accountable in court.
The lawsuit was filed on September 27 in the United States District Court for the District of Columbia by the Alliance of Legal Cannabis Entities (ACLE), formed by DC Holistic Wellness Group LLC and Herbal Alternatives II LLC. The lawsuit targets 24 defendants, all of whom claim to be illegal dispensaries, their owners or landlords.
The city has been trying to move many gray market cannabis businesses into the fully legal market for years, but many unlicensed businesses are unwilling to operate under the city's rules for fully compliant cannabis businesses. Many stakeholders are losing patience.
“The operation of illegal, unlicensed dispensaries selling illegal cannabis products in the District of Columbia significantly reduced commercial sales diverted from the legal and licensed cannabis market to the illegal cannabis market in Washington, D.C.,” the complaint charges. and presumes that illegal marijuana is illegal. Sales exceeded $600 million annually.
Pressure from the unlicensed market “forced several legally licensed cultivators, manufacturers, and retailers to cease operations,” the complaint states.
The 10 unlicensed establishments named in the lawsuit flaunt city rules and warning letters from the Bureau of Liquor and Cannabis against unlicensed marijuana sales, and are supported by the 12 landlords and property management companies identified as defendants. The complaint alleges that.
All illegal stores claim compliance with city law under Initiative 71. Initiative 71 was a voter-approved ballot measure in 2014 that legalized the possession and “gifting” of recreational marijuana, which led to the proliferation of business models based on expensive T-shirts and other trinkets. Comes with a “gift” of cannabis goods.
However, this model was deemed illegal by the ABCA, the lawsuit notes.
“The D.C. government has repeatedly emphasized that commercial 'gifts' are transfers for compensation and are illegal,” the complaint states.
Beyond cannabis
Not only that, but many of the shops in question also traffic in “magic” mushrooms, and the lawsuit accusations of the 2020 ballot measure, Initiative I-81, put law enforcement at the lowest possible priority. It was dark.
However, this measure did not legalize the production or sale of psilocybin.
“There is no legal means to buy or sell magic mushrooms in Washington, D.C.,” the lawsuit claims. “Licensed cannabis growers cannot grow these mushrooms, and manufacturers cannot produce the mushroom chocolate bars promoted by illegal cannabis dispensaries.”
Additionally, many of the unlicensed stores named in the lawsuit advertise illegal interstate shipments of marijuana and psilocybin mushrooms to neighboring states, further disregarding local and federal laws, the lawsuit says. claims.
“Many of the 10 illegal dispensary defendants offer to ship illegal cannabis products outside the District of Columbia to Maryland and Virginia, presenting their delivery options as safe and legal.” says the complaint.
The complaint also states that the 10 illegal stores in question are Nerd Rope, Snickers, Chips Ahoy, Milky Way, Three Musketeers, Almond Joy, Jolly Ranchers, and Doritos.
Most of the illegal shops advertise their illegal services online through many platforms, from social media sites such as Facebook and Instagram to mainstream sites such as Google, Yelp, MapQuest, and Reddit, the complaint alleges. I'm doing it.
The lawsuit seeks damages equal to three times the profits earned by each defendant over the past three years, or from the date the business began until the end of the lawsuit. The defendants are charged with unfair competition, false advertising and promotion, conspiracy, and negligence.
DC ACLE sues against unlicensed store
