[co-author: Stephanie Kozol]*
Earlier this month, the office of the Attorney General of Connecticut announced that the state had reached a settlement with HighBazaar over allegations that the organization allowed the unlicensed sale of cannabis, and the presence of minors, at their outdoor social cannabis events in Connecticut. The settlement represents one of many enforcement actions aimed at eliminating the state’s gray market and protecting licensed businesses and consumers.
HighBazaar first received a cease-and-desist letter from the AG’s office in January after it became aware that the organization was allegedly hosting events where vendors were facilitating the marketing and sale of cannabis products outside of the regulated market. In 2022, the Connecticut legislature amended a loophole in its existing laws that permitted barter exchange marketplaces like those at HighBazaar’s events. The AG’s office eventually sought and received an injunction only a few weeks later, which required HighBazaar to cancel an upcoming event. These actions ultimately culminated in the settlement announced last week, which imposes new restrictions and requirements for HighBazaar events going forward.
The AG’s enforcement actions against HighBazaar are only the latest in a string of actions spanning back to 2022, demonstrating the office’s priority of eliminating allegedly unsafe and unlicensed cannabis activity within the state. In 2022, AG Tong joined a coalition of 23 state AGs calling on Congress to enact legislation aimed at protecting children from allegedly unregulated cannabis products that are designed to mimic popular snack and candy brands, which have contributed to the rise in accidental THC consumption among children across the U.S. In March of this year, the AG’s office launched a public service announcement campaign warning Connecticut parents about the dangers of these products.
In February 2023, AG Tong announced lawsuits against five retailers in Connecticut for allegedly selling illicit delta-8 THC products that used branding evocative of popular youth-oriented snacks and candies, and sent warning letters to all other Connecticut retailers of vaping products informing them that sales of delta-8 products exceeding .3 percent THC on a dry weight basis without a license are prohibited under Connecticut law.
Why it Matters
The enforcement action against HighBazaar is a representative example of Connecticut’s enforcement priorities as they relate to cannabis products and the cannabis marketplace. AGs offices around the country are also ramping up enforcement activities as the therapeutic and recreational use of cannabis becomes more widespread. Many states are following an enforcement model similar what the Connecticut AG has implemented. Marketplace participants need to stay informed of regulatory priorities and the potential impact to market participants across the entire sector.
*Senior Government Relations Manager
