New Jersey's attorney general announced Tuesday that the state's Division of Consumer Affairs has issued warning letters to four companies for allegedly trying to circumvent local marijuana laws by "gifting" "free" cannabis with orders of high-priced snacks.
While recreational cannabis use for adults 21 and older was approved by New Jersey voters in 2020, the state's Cannabis Regulatory Commission has been slow to establish firm vendors' rules and hand out licenses. In response, impatient would-be vendors are trying to find workarounds.
Gifting is lawful between adults 21 and older under New Jersey’s adult-use cannabis law, but a number of businesses are allegedly taking advantage of that policy by giving away “free” cannabis products to those who purchase other items like snacks and baked goods.
No retail marijuana businesses have been licensed since the state enacted recreational legalization earlier this year, which followed voter approval of a reform initiative during the November 2020 election. Licensing regulations still need to be developed before adult-use shops can open.
Gurbir Grewal sent letters of cease and desist to four Garden State-based vendors, telling them that they are being investigated for violating the Consumer Fraud Act.
Licenses to sell legal weed are still months away, but there’s a handful of entrepreneurs coming into the scene through a possible legal loophole — “gifting” cannabis.
It’s a scheme popular in other states and particularly in Washington, D.C. A company lets you buy cookies, snacks or brownies that come with sticker shock of $50 or more. But when they make the delivery, it comes with a suggested gift: maybe a cannabis edible or an ounce of flower.