Last summer, the Massachusetts based retailer Curaleaf mistakenly mixed-up THC with CBD at a bottling plant in Portland. Approximately 1,500 mislabeled bottles containing what the Oregonian describes as a “jumbo” dose of THC were shipped under the brand name Select and sold as containing only CBD. Although many of the bottles were recalled at the behest of state regulators, some were purchased and ingested, leading to approximately a dozen lawsuits.
The Oregon Liquor & Cannabis Commission (“OLCC”) initially sought to impose a 70-day suspension and a $200,000 fine on Curaleaf. This was the maximum allowable financial penalty under the law. The OLCC has now agreed that Curaleaf will face only a 23-day suspension and $130,000 fine and Curaleaf can reduce the suspension to only 12 days if it pays an additional $2,750. Meanwhile, just a few days ago, the OLCC issued a news release “signaling a desire to sideline marijuana licensees unable to follow common business practices.”
Preceding this THC/CBD mixup, Curaleaf was hit by the OLCC with a $110,000 “dishonest conduct” penalty related to claims about vaping products. And in July 2020, Curaleaf found itself defending a class action lawsuit after the FDA issued a warning for “illegally selling”
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