On May 14, Colorado Attorney General (AG) Phil Weiser announced that the state reached a settlement with MC Global Holdings, LLC, its associated companies, and owners (collectively MC) to resolve allegations that MC’s business practices violated the Colorado Consumer Protection Act (CCPA).
MC, which operates under the brand Vivimu, manufactures, packages, labels, distributes, and sells industrial hemp products directly to both wholesale and retail consumers through several websites.
The AG alleged that from 2021 through December 2024, MC misrepresented the source, quality, characteristics, ingredients, and health benefits of their products to consumers. Specifically, MC allegedly falsely advertised certain products as being extracted or manufactured using “organic” hemp flower. The AG also alleged that MC falsely represented its involvement in the manufacturing process of its retail products, when in reality MC did not directly participate in the production of the hemp products but rather purchased them from third-party suppliers. Further, the AG’s investigation found that despite representing that they were operating from Texas and that products were distributed from various fulfillment centers located across the U.S., MC operated solely in and from the state of Colorado.
Pursuant to the settlement, MC must pay $50,000 in civil penalties to the state, remove all misleading statements from its websites and comply with the CCPA going forward, and properly register to conduct business operations in the state of Colorado. Any material violation of the settlement agreement will result in an additional $200,000 penalty.
Understanding the nuances of the CCPA is vital for businesses participating in Colorado’s regulated cannabis industry. As the industry continues to evolve and state regulators become more active in this sphere, businesses must stay informed to ensure continued compliance.
