Pueblo cannabis company to pay $225,000 fine in settlement after misrepresenting products
PUEBLO, Colo. (KRDO) – A Pueblo-based cannabis company will pay a $225,000 fine after reaching a settlement with the Colorado Attorney General's Office following a state investigation.
According to the Colorado Attorney General's (AG) Office, Bee’s Knees CBDs made several misrepresentations on its website regarding the source of its products, wrongly characterized products as “organic,” lacked a proper age verification system implemented on its website, and lied about supporting conservation groups.
Despite claiming that the company's products were organic and produced in Colorado, owner Joseph Leyba later admitted to investigators that those claims were false, the AG said.
Further investigation found the company was using altered and expired hemp licenses and testing documents to misrepresent their products as complying with the law. The company also failed to institute an age verification system on their website, despite selling hemp products containing as much Delta-9 THC as products found in regulated marijuana dispensaries.
Additionally, Bee’s Knees claimed on its website that the company was associated with several conservation nonprofits—claims that investigators later found were false, the AG said.
“Colorado is committed to maintaining an effective system of overseeing the sale of legal cannabis products—one that keeps it out of the hands of kids, ensures safety standards, requires chain-of-custody tracking, and gives consumers important information about the products they buy,” Attorney General Phil Weiser said. “In this case, the company misrepresented to their customers the source and nature of their products and sold intoxicating products without verifying the age of customers.”
On top of paying the $225,000 fine, Bee’s Knees will be required to fully comply with state law and vet any raw materials used to make its products. The agreement also requires the company obtain all required licenses and permits to legally conduct business, add age verification to its website and remove any misrepresentations about their products or associations with nonprofits.
Fines could grow to $495,000 if the company fails to comply with the full terms of the settlement, the AG said.
