California cannabis companies under fire for THC inflation

(NewsNation) — Two California cannabis companies are being accused of marketing falsely advertised percentages of tetrahydrocannabinol (THC) — the chemical that gives users a high.

Filed by Jasper Centeno of Long Beach and Blake Wilson of Fresno against DreamFields Brands and Med for America, Inc. on Oct. 20, the suit takes specific aim at the companies’ Jeeter pre-roll products.

Contrary to claims Jeeter pre-rolls average 35%-46% THC content, an independent lab test cited in the complaint said the brand only contains between 23% and 27% THC.

The lawsuit also draws attention to a cannabis review by Weed Week that found that all of Jeeter’s products had THC levels lower than the label advertised and accused DreamFields of exaggerating its products’ THC levels to charge customers higher rates.  

“Consumers are willing to pay more for cannabis products with higher THC content, and expect to pay less for cannabis products with lower THC content,” wrote Christin Cho of Dovel and Luner, the law firm that filed the lawsuit. “The complaint alleges that by labeling its products with inflated THC numbers, defendants are overcharging consumers.”

The phenomenon, otherwise known as “THC inflation,” is a new trend in the legal cannabis industry fueled by labs trying to meet the demand of producers wanting higher THC percentages for more favorable profit margins.

“The demand for high-THC products has, unfortunately, led to ‘THC inflation’ — the practice of intentionally listing false, high THC content on labels,” the lawsuit said. 

The suit goes on to say that Jeeter’s mislabeled packaging, which, on some containers states it is “the one Joint that will get you to Mars quicker than Elon Musk,” are also in violation of multiple California consumer laws regarding false advertising, including state Department of Cannabis Control regulations.

Should the case go to trial, the plaintiffs are seeking a jury trial, an injunction against the company, and an undisclosed amount in punitive damages.

According to the annual Marijuana Business Factbook, California was responsible for $5.7 billion in marijuana sales last year — the highest figure in the nation.