New Jersey Attorney General Cracks Down On ‘Gift’ Marijuana Schemes Involving Overpriced Snacks

MJ moment

The attorney general of New Jersey on Tuesday sent warning letters to companies that are effectively circumventing the state’s marijuana laws by “gifting” cannabis in exchange for non-marijuana-related purchases such as overpriced cookies, brownies and stickers. Gifting is lawful between adults 21 and older under New Jersey’s adult-use cannabis law, but a number of businesses are allegedly taking advantage of that policy by giving away “free” cannabis products to those who purchase other items like snacks and baked goods. No retail marijuana businesses have been licensed since the state enacted recreational legalization earlier this year, which followed voter approval of a reform initiative during the November 2020 election. Licensing regulations still need to be developed before adult-use shops can open. Have you heard about businesses that “gift” marijuana w/ the purchase of snacks or other items? This isn’t the kind of cannabis business allowed by NJ’s new law. We’re warning these businesses to stop unlawful practices that could undercut the legal market.https://t.co/pYBODk12DY — AG Gurbir Grewal (@NewJerseyOAG) June 15, 2021 “In legalizing adult-use cannabis in New Jersey, the Legislature made it clear they were creating a regulated market with restrictions on how that market operates,” Attorney General Gurbir Grewal said in a press release. “Instead of waiting for those regulations to be established, some vendors have decided to move forward on their own, in ways that the law does not allow.” “Today we’re making it clear that we will not permit these entities to undermine the regulated cannabis marketplace the Legislature created or to compete unfairly with properly licensed cannabis businesses,” he said. Four Sky High Munchies, Slumped Kitchen LLC, NJGreenDirect.com LLC and West Winds Wellness were targeted with cease and desist letters, which state that the cannabis gifts that they’re offering appear to be central to their business transactions.…

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