The Missouri Independent writes
Some suspect AG Andrew Bailey intended to target the state’s two largest intoxicating hemp businesses, but went after the wrong company
Missouri Attorney General Andrew Bailey launched an investigation into four companies Wednesday as part of an effort to crack down on intoxicating hemp products.
The problem, according to Bailey, is the products in question — such Delta-8 edibles and vape pens — are not clearly labeled to indicate that they’ll get you high.
“When purchasing products, Missourians have a right to know if they will be subject to serious and potentially dangerous side effects,” Bailey stated in his press release, “like psychotic episodes, severe confusion, hallucinations and other life-threatening problems.”
Intoxicating hemp products are completely unregulated but can still be sold in places like bars and gas stations — because hemp is federally legal.
However, everyone from the companies making these products to stores selling them to elected officials want to see age restrictions put in place by the state, along with label and testing requirements.
Two Republican lawmakers have proposed legislation to do that, but the bills would also likely ban a majority of the intoxicating hemp products currently on the market — putting hundreds of companies out of business.
The large divide in how regulations should happen has essentially tanked the bills’ chances of making it to the governor’s desk.
Bailey seems to be joining the push to regulate the products. However, it’s unclear exactly who he’s targeting.
Bailey issued a “civil investigative demand,” which are essentially subpoenas, to CBD Kratom Connect LLC of St. Louis, a company that several leaders in the hemp industry say they’ve never heard of and which has virtually no online presence indicating it is operating in Missouri.
Some wonder if Bailey meant to target CBD Kratom, which is one of the largest intoxicating hemp companies in the state and country.
When asked for clarification, Madeline Sieren, spokeswoman for the Attorney General’s office, said: “Unfortunately because the investigations are ongoing, I cannot comment beyond what is written in the CIDs.”
Also based in St. Louis, CBD Kratom has over 60 retail locations throughout Chicago, Dallas, Houston, New York, Philadelphia and St. Louis. And it has no connection to CBD Kratom Connect, the company’s owner David Palatnik told The Independent Thursday.
During hearings regarding the proposed legislation, Palatnik testified in support of banning products that look like candy and are attractive to children — the exact issue Bailey is hoping to address by the investigations.
“It’s an issue in the industry that some people sell child-looking packaging that is also fraudulent and is also a violation of federal laws,” Palatnik said. “So we’d agree with the attorney general on that front.”
His company ensures all its products have transparent labeling, he said. Palatnik says he opposed the legislation proposed in the Missouri General Assembly because of the harmful impact it would have on hemp businesses.
On Wednesday, Bailey also ordered an investigation into American Shaman, one of the largest intoxicating hemp companies in the state and country.
Vince Sanders, owner of American Shaman, told The Independent Thursday that his company makes gummies and chocolates made with hemp-derived THC, but they’re sold in child-proof containers, similar to what is required by state law for marijuana products.
“They all say ‘21-plus,’” Sanders said. “If you’re in one of our stores, you actually have to sign a document that says you understand that these are psychoactive.”
Sanders has also been a vocal and influential opponent to the proposed legislation.
Two individuals also received investigation notices from Bailey: Cara Buchanan with Smoke Smart LLC in St. Louis and Tariq Zeiadeh with Vape Society Supplies in Columbia.
An employee at the Smoke Smart location in St. Peters said Buchanan no longer owns the business or lives in Missouri, and the current owners do not operate as Smoke Smart LLC. Zeidadeh has not responded to a request for comment.
In his press release, Bailey states that he’s received reports that businesses were “potentially violating the Missouri Merchandising Practices Act, which grants Missourians the right to a marketplace free from fraudulent or deceptive business practices.”
Bailey also pointed to the six elementary-age children in St. Louis County who became sick and intoxicated at school after reportedly ingesting Delta-8 products that were packaged as “Nerds Rope Bites and Mad Monkey Sour Strawberry Premium Gummies.”
The attorney general’s office didn’t respond to The Independent’s question on whether any of the four companies under investigation made the products in the St. Louis County incident.
Read the full report
Missouri attorney general launches investigation of intoxicating hemp products
Attorney General Bailey Launches Consumer Protection Investigation to Combat Dangerous, Illicit Products
JEFFERSON CITY, Mo. – Today, Missouri Attorney General Andrew Bailey launched an investigation into illicit vape and marijuana products to ensure compliance with Missouri law, and to protect Missouri consumers from potentially dangerous products. His office issued civil investigative demands – subpoena power reserved for the Attorney General’s Office – after receiving reports that distributors were potentially violating the Missouri Merchandising Practices Act (MMPA), which grants Missourians the right to a marketplace free from fraudulent or deceptive business practices. The investigation stems from adverse health incidents occurring both in Missouri and around the nation, specifically incidents harming children.
“Under state law, Missourians have a right to live free from fraud and deception in the marketplace, and they have the right to know exactly what is in the products they consume,” said Attorney General Bailey. “When purchasing products, Missourians have a right to know if they will be subject to serious and potentially dangerous side effects like psychotic episodes, severe confusion, hallucinations and other life-threatening problems. This is especially important when potentially dangerous products appear to be marketed directly at children. As Attorney General, I will use every tool at my disposal to halt the sale of dangerous, illicit products that harm Missouri consumers, especially children.”
Delta-8 is already illegal or severely restricted in at least 24 states because of the serious health risks it poses to consumers, and Missourians are not immune from this emerging national health emergency. In March of 2024, six elementary-age children in St. Louis County became so sick that their parents had to pick them up from school after reportedly ingesting Delta-8 products that were packaged as “Nerds Rope Bites and Mad Monkey Sour Strawberry Premium Gummies.” One of the affected children had trouble walking and believed she was being kidnapped when her mother came to pick her up.
The civil investigative demands (CIDs), sent to businesses that sell Delta-8 and Delta-9 goods, allege that they engaged in illegal means to market and sell these products to Missourians. “This investigation will inquire into the activities and representations of [certain sellers] in connection with the manufacturing, sale, marketing, advertisement, promotion, and/or distribution of products containing CBD, Delta-8, and Delta-9 THC. The Attorney General has reason to believe that [the company being investigated] has used deception, fraud, false promise, misrepresentation, unfair practices, and/or the concealment, suppression, or omission of material facts in connection with the sale or advertisement of CBD, Delta-8, and Delta-9 THC products,” the CIDs state.
Attorney General Bailey also issued CIDs to distributors that sell e-cigarettes, or illicit vapes. “The Attorney General of the State of Missouri believes it to be in the public interest that an investigation be made to ascertain whether [the subject of the investigation] has engaged in or is engaging in any practices declared to be unlawful by § 407.020, RSMo. This investigation will inquire into the activities and representations of [the subject of the investigation] in connection with the sale of disposable electronic nicotine delivery system (ENDS) products in Missouri. The Attorney General has reason to believe that [the company’s] conduct in the aforementioned areas and others involves deception and/or unfair practices within the scope of the Missouri Merchandising Practices Act,” they read.
With the CIDs, Attorney General Bailey is subpoenaing documents that will allow his office to get to the bottom of potential fraud or deception.
“I will always put consumers, and especially children, first,” concluded Attorney General Bailey. “My office is pushing forward full steam ahead as we work to preserve the integrity of the marketplace and protect Missourians.”
The civil investigative demands can be viewed here.
Final-Version-Combined-CIDs-4.17
