USA: South Jersey business ordered to stop ‘gifting’ free cannabis to customers

Slumped Kitchen LLC of Marlton could be in violation of the state’s Consumer Fraud Act, officials said

Philly Voice reports

lumped Kitchen LLC, a Marlton, Burlington County-based cannabis delivery service, could be in violation of New Jersey’s consumer protection laws for allegedly “gifting” free marijuana products to customers.

The company was one of four businesses across the state that was issued a cease-and-desist letter earlier this week by Attorney General Gurbir Grewal and the Division of Consumer Affairs to stop offering free marijuana “gifts” to customers who purchased snacks, baked goods or other items.

The company, which describes itself as New Jersey’s No. 1 cannabis gifting service, delivers sweets like brownies and cookies and “treeats” to customers across the state within 48 hours. Customers may receive a “gift” of up to one ounce of marijuana from a driver with each order.

Along with cookies and brownies, Slumped Kitchen LLC also sells “snack packs” and “munchie packs” that start at $150, according to the state’s cease-and-desist letter. Customers are required to select a 14-gram or 28-gram “gift” for every order that ultimately determines the final sales price.

Slumped Kitchen LLC is now under investigation for violating the state’s Consumer Fraud Act, which prohibits unauthorized business practices, misrepresentation and deception in the marketplace. The other three establishments, which are located in the central and northern parts of the state, are also under investigation for inaccurately claiming to offer free marijuana “gifts” along with the purchase of certain products at expensive prices.

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Each misrepresentation in the sale or advertising of business constitutes a separate violation under the Consumer Fraud Act. First-time violators may be subject to a penalty of $10,000. Repeat offenders may have to pay $20,000 for each subsequent violation.

Grewal said that the warning letters were an effort by the state to “not permit these entities to undermine the regulated cannabis marketplace the Legislature created or to compete unfairly with properly licensed cannabis businesses.”

https://www.phillyvoice.com/slumped-kitchen-new-jersey-marijuana-cannabis-business-gifting/

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