Colorado’s Attorney General continues to crack down on the state’s hemp companies, recently settling claims against one while filing suit against another.
In the first case, a CBD company has agreed to pay $495,000 to settle allegations brought by the state under the Colorado Consumer Protection Act (CCPA). Bee’s Knees Enterprises entered the settlement to resolve claims of deceptive trade practices.
The agreement did not require the company to admit liability in the case, in which Bee’s Knees was accused of giving false information regarding its hemp-derived cannabinoid products.
In a separate case, the AG’s office filed a lawsuit against Foxhole Farms, a Mesa County business, for marketing marijuana products as federally legal industrial hemp.
Attorney General Phil Weiser has leveraged the CCPA to enforce compliance in the hemp flower sectors, taking action where specific regulatory frameworks may be lacking. The cases underscore the state’s ongoing efforts to enforce cannabis laws, safeguard consumers and protect the integrity of the regulated cannabis market, the AG’s office said in a statement.
Allegations of deception
In the Bee’s Knees case, the allegations stem from practices between 2019 and October 2024, with the state accusing the company of misrepresenting the source, quality, and chain of custody of its hemp products. The company allegedly claimed its extracts came from licensed Colorado farms and state-approved sources, but lacked the necessary documentation to support those claims.
Bee’s Knees was also accused of displaying nonprofit organization logos on its website without permission, falsely suggesting affiliations or contributions. The company also failed to implement age-verification systems, allowing minors potential access to intoxicating hemp products sold online.
Corrections required
The company must make a payment of $75,000 by Dec. 31, 2024, with additional payments scheduled through 2027. A suspended penalty of $270,000 will remain unenforced if the company complies with payment terms and other requirements outlined in the settlement.
The settlement imposes strict compliance and corrective measures. Bee’s Knees must update its website to remove false claims and unauthorized logos, maintain proper licenses, and establish robust age-verification protocols to restrict sales to minors. The agreement also allows the Attorney General’s Office to monitor and enforce compliance, reserving the right to take further action if terms are violated.
Foxhole suit
In the Foxhole suit, owner Dane Snover faces allegations his company sold marijuana products mislabeled as federally legal industrial hemp. The suit follows an investigation that showed that many of the company’s products exceeded legal delta-9 THC limits for hemp and were falsely marketed.
The Attorney General’s Office launched an investigation in 2023 after a complaint from a consumer in another state alleged Foxhole Farms sold cannabis to his 16-year-old son.
Investigators conducted undercover purchases, which revealed products containing THC levels far above the legal threshold for industrial hemp – one product tested at nearly 250 times the allowable limit. The company also failed to use proper age-verification systems, relying only on a website prompt for users to confirm they were 21 or older.
Products sold by Foxhole Farms included edibles, concentrates, and flowers, many of which were improperly labeled. Some packaging lacked childproofing, failed to indicate THC content, and featured misleading notices stating the products complied with legal THC limits. Of the 23 products tested during the investigation, 21 were misrepresented on the company’s website.
Health & safety risks
Beyond THC mislabeling, some products contained hazardous levels of chemicals. One item tested contained extremely high concentrations of benzene, a solvent banned in cannabis production due to its carcinogenic risks. Benzene exposure can be particularly harmful when inhaled, posing severe health risks to consumers.
“We will continue to hold accountable companies that try to make a quick buck by breaking the law,” Weiser said. “When companies like Foxhole Farms flout regulations, they undermine Colorado’s regulated cannabis market, endanger consumers, and make it easier for kids to access cannabis.”