- New Jersey AG Gurbir Grewal issued cease and desist letters to four businesses warning that offering free “gifts” of marijuana or cannabis items with purchases of other products may violate the state Consumer Fraud Act (“CFA”).
- In the letters to com, LLC, Sky High Munchies LLC, Slumped Kitchen LLC, and West Winds Wellness, AG Grewal warned that “gifting” marijuana or cannabis with the purchase of snacks, baked goods, or other products is deceptive and violates the CFA and the Consumer Protection Division’s Advertising Regulations because the so-called “gifts” offered are actually central to the sales transaction, and that the businesses are misrepresenting the legality of purchases that may violate the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (the “Act”).
- The letters note that the Act—which was enacted in February 2021—legalizes and regulates cannabis use and possession and establishes the Cannabis Regulatory Commission (“CRC”), but the CRC has not yet adopted rules for licensing adult-use cannabis retailers or issued any licenses to such businesses.
- According to the letters, each misrepresentation constitutes a separate CFA violation, which carries a $10,000 penalty for the first violation and a $20,000 penalty for each subsequent violation, and authorizes injunctive and other relief.