Seven Ohio cannabis companies are suing state regulators to overturn strict product and advertising rules they claim conflict with the state’s 2023 voter-approved legalization law.
Cleveland-based Ancient Roots, Akron-based Fire Rock and five other businesses sued the state Division of Cannabis Control (DCC) on Sept. 17, according to The Columbus Dispatch.
The lawsuit comes nearly two years after Ohio voters legalized adult-use marijuana in November 2023.
Recreational sales hindered by medical program rules
Recreational marijuana sales began in August 2024 and topped $702 million in the first year.
The lawsuit alleges that the state is enforcing outdated regulations from the medical cannabis program, which do not align with the new law.
“I thought we would’ve seen a little bit of growth and more people would know and understand what’s going on,” Brian Wingfield, co-founder of Ohio Cannabis Co., one of the plaintiffs, told The Columbus Dispatch.
“It would be a lot nicer if we were running under a recreational program.”
In their lawsuit, marijuana operators said the DCC has imposed unnecessary obstacles and created confusion about what is permissible.
According to court documents, the state informed Ohio Cannabis that it could not use the phrase “Merry Christmas” in advertisements or promote holiday deals, citing concerns that holidays are associated with children.
The lawsuit also claims that officials rejected specific cannabis strain names, such as Strawberry Shortcake, Kandy Kane and Shadow Realm.
Ohio regulations forbid companies from naming strains after flavors not naturally found in cannabis because they could appeal to children.
The DCC declined to comment on the ongoing litigation.
Slow progress on Ohio cannabis rulemaking
The voter-approved law, known as Issue 2, required the agency to issue dual-use licenses for existing medical marijuana businesses by September 2024. It also tasked regulators with establishing rules for licensing, advertising, product standards and other aspects of the program.
The rulemaking process has progressed more slowly than business owners anticipated.
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The restrictions create customer confusion and contradict industry norms, according to business owners.
“Because there is no current statutory framework, the DCC is constantly moving the goalposts, preventing licensees like us from having a fair shot to operate in the free market,” Wellspring Fields CEO Mark Hobson said in an affidavit.
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