Hemp Industry Struggles: Layoffs Loom as Attorney General Cracks Down on THC Sales

A lawsuit has been initiated against Arizona Attorney General Kris Mayes in response to recent enforcement actions affecting THC-related products.

TEMPE, Ariz. — Non-dispensary businesses that sell THC products now risk felony charges or fines up to $20,000. This enforcement, activated a few weeks ago, has forced various retailers to stop selling these items, impacting both large stores and small businesses.

Joanna Materon, manager of Main on Mill Smoke Shop, reported significant losses after removing THC-infused products from her shelves. “We definitely lost those few customers that we had,” she said, noting that many of her customers were elderly individuals seeking alternatives for chronic pain.

Many customers turned to lower THC options, such as hemp products, after the ban took effect. Coffee shops like Wake and Bakery have also suspended sales of THC-infused snacks and beverages, displaying signs to inform patrons of the changes.

Tina Ulman, CEO of Grow Up Co-Op, described the widespread impact on her business and clients, including the closure of sales at major retailers like Total Wine. Ulman emphasized that many consumers prefer low-THC products for their calming effects without the high levels associated with dispensary offerings.

Mayes’ actions are aimed at preventing unlicensed sales of THC products, ensuring compliance with Proposition 207, which legalized cannabis sales in Arizona. The intent is to protect minors from accessing high-THC items through convenience stores and smoke shops.

However, the legality of this enforcement is being challenged. Attorney Julie Gunnigle, representing the hemp industry, argues that the sales of low-THC products align with the 2018 Federal Farm Bill. She contends that Mayes is misinterpreting the regulations, jeopardizing thousands of jobs and significant economic contributions.

As the legal battle unfolds, businesses like Materon’s are opting for caution, refraining from selling THC products until clarity is achieved. The outcome will significantly shape the landscape for retailers in Arizona’s evolving cannabis market.