California cannabis brand, Stiiizy, is being sued for fraudulently inflating the THC percentages of their pre-roll products.
Counsel representing “millions” of former customers who purchased cannabis products with inaccurate THC-content labels filed the class action lawsuit against Ironworks Collective Inc. and Stiiizy LLC, saying that the companies overcharged consumers by illegally selling products whose THC content was represented as substantially higher than it actually was.
“THC-content fraud is rampant in California, but we hope to hold companies accountable,” said Christin Cho of Dovel & Luner, the attorney representing the suit.
“Testing by an independent lab reveals that the true THC content of Defendants’ products is materially less than the amount listed on the label,” the complaint said. “Moreover, the difference is far greater than the 10% margin of error that DCC regulations permit.”
Various Stiiizy pre-roll products have been marketed as having been tested in excess of 40% THC potency. However, counsel alleges independent lab testing showed that the THC content in products such as its “40s Strawnana 2G Preroll” – which is listed as having 50.57% THC on the label – were overstated and ended up being substantially lower, between 33-34% THC.
The complaint, which was filed in the Superior Court of the State of California County of Los Angeles, alleges the two companies violated the consumer protection laws of California, including California’s Unfair Competition Law and False Advertising Law, among other violations.
The counsel said that the companies “know that THC content is highly material to consumers and have a direct financial incentive to overstate the THC content of their products.”
“Moreover, as one of the largest players in California’s cannabis industry, (the companies) are aware of industry trends, aware of the rampant testing fraud in the cannabis market, and know which labs participate in the fraud. Accordingly, (the companies) are intentionally and knowingly causing the THC content declared on the label of their products to be substantially, and systematically, overstated, either by misstating the results themselves or by intentionally and knowingly causing testing labs, which are their agents, to report fraudulently high THC content results.”
Plaintiff and class members are seeking damages and restitution, as well as an injunction for the companies to stop selling those products until a judgement is made.