South Jersey companies ordered to stop “giving away” free cannabis to customers
Slumped Kitchen LLC, a marijuana delivery service company headquartered in Malton, Burlington County, may violate New Jersey’s consumer protection laws by allegedly “giving away” free marijuana products to customers.
The company is one of the four enterprises in Jeonju A suspension order was issued earlier this week Attorney General Gurbir Grewal and the Department of Consumer Affairs stopped offering free cannabis “gifts” to customers who purchase snacks, baked goods or other items.
The company describes itself as The #1 cannabis gifting service in New Jersey, Provide chocolate cakes, biscuits and “treeats” and other sweets to customers across the state within 48 hours. Customers can receive a “gift” of up to one ounce of marijuana from the driver.
In addition to biscuits and chocolate cakes, Slumped Kitchen LLC also sells “snack packs” and “snack packs” starting at $150. State government’s stop orderThe customer needs to choose a “gift” of 14 grams or 28 grams for each order that ultimately determines the final sales price.
Slumped Kitchen LLC is now under investigation for violating the state’s Consumer Fraud Act, which prohibits unauthorized business practices, misrepresentation and deception in the market. Three other agencies in the central and northern parts of the state are also under investigation for falsely claiming to provide free marijuana “gifts” and purchasing certain products at high prices.
According to the Consumer Fraud Act, every false statement in sales or advertising business constitutes a separate violation. The first offender may be fined $10,000. Repeat offenders may have to pay $20,000 for each subsequent violation.
Grewal stated that the warning letter is an effort by the state to “not allow these entities to disrupt the regulated cannabis market created by the legislature or to compete unfairly with properly licensed cannabis companies.”
“When New Jersey legalized adult use of marijuana, the legislature made it clear that they were creating a regulated market and restricting how that market works,” Greval said. “Some vendors did not wait for the establishment of these regulations. Instead, he decided to move forward on his own in a way not permitted by law.”
According to reports, due to the lack of licensed cannabis companies, in other states and Washington, D.C., plans to “give away” cannabis products to customers and purchase snacks or baked goods at high prices have become popular. New Jersey NetThe state of Virginia declared the “giving away” loophole illegal when it passed its own marijuana law earlier this year.
However, this practice may be legal in New Jersey because the state’s new marijuana law allows the possession of up to 6 ounces of marijuana per sale and no more than 1 ounce of marijuana without penalty.
However, companies may have more than 6 ounces of water on hand to meet demand, leading to violations. Unless the customer has more than the legally permitted quantity, no fee will be charged to any customer who places an order.
Governor Phil Murphy Sign three bills into law Recreational marijuana used by adults was legalized statewide in February. New Jersey is one of 17 states that legalized marijuana for adults 21 and older.
After about two-thirds of New Jersey residents, legalization was discussed repeatedly in the state legislature for more than three months. Vote for change A referendum was held in the election in November last year. After several legislative efforts failed in the past few years, the referendum was a success.
The law authorizes certain companies licensed by the Marijuana Regulatory Commission to sell marijuana for adults. CRC has not passed licensing rules for adult-use marijuana retailers or issued any licenses to such businesses, including Slumped Kitchen LLC. The committee must establish rules and regulations for the industry by August 21 before it can begin issuing licenses for new cannabis companies.
The new cannabis legislation gives municipalities 180 days to restore the ban on cannabis sales at the local level before it falls under the jurisdiction of state law. Some cities across the state ban the sale and cultivation of cannabis in their towns, including Jersey Coast destinations such as Margate, Wildwood Crest, Ocean City And Somers Point.
Margate officials Unanimous vote on Thursday All cannabis companies and the use of cannabis products in public are prohibited.
Last month, Wildwood Peak Imposes its own restrictions on how cannabis is distributed and used The entire administrative region.
Residents and visitors of Wildwood Crest are now prohibited from using cannabis products in public places such as parks and recreational areas. In addition, all cannabis agencies, distributors and delivery services are prohibited within the administrative region. The new rules came into effect at the beginning of this month.
The Ocean City decree was introduced in March and passed unanimously after the city council held a public hearing on the matter in April.
The new measures replace a ban on marijuana passed in Ocean City in 2019. After the legalization and decriminalization of adult use of marijuana in New Jersey, the original restrictions became invalid.