Marijuana Companies Sue Shops for Illegal Sale of THCA Flower in Missouri

A coalition of licensed marijuana companies in the state of Missouri has filed lawsuits against dozens of shops accused of illegally selling marijuana under the designation of “THCA hemp flower.” The information comes according to a report from Missouri Independent.

According to the publication, the lawsuits target nearly 40 shops in St. Louis County and 17 companies in the Kansas City area, including major hemp industry chains such as American Shaman and CBD Kratom. New lawsuits are expected as the coalition expands its offensive against what it classifies as unfair competition.

The lawsuits argue that the sale of these products creates an imbalance in the state cannabis market. According to the Missouri Independent, licensed marijuana growers pay about $30,000 per year in fees, while dispensaries shell out over $11,000, in addition to high costs for lab testing, traceability, and compliance requirements. Still, these operators compete with retailers selling products described in the lawsuits as “chemically identical” to regulated marijuana.

The coalition's attorney, Chris McHugh, told the Missouri Independent that the legal initiative was only adopted after three consecutive legislative sessions without the approval of specific rules for THCA-based products. “We sat and watched this grow in disbelief,” McHugh said to the publication. According to him, “they are selling marijuana to anyone and arguing that they have the right to do so — whether it’s a child or someone picking up for DoorDash — without regulation, without guidelines, without guardrails, and it’s getting bigger and bigger.”

In the requests, the coalition seeks financial damages and a permanent injunction preventing the shops from marketing, distributing, or selling any marijuana flower or THCA products.

What is THCA flower, according to the Missouri Independent

According to the publication, the controversy revolves around how federal legislation defines marijuana and hemp. When the United States Congress passed the 2018 Farm Bill, it established that hemp is any product of Cannabis sativa L. that contains less than 0.3% delta-9 THC by dry weight.

The problem, as described by the Missouri Independent, is that cannabis in its raw form typically contains little delta-9 THC. Instead, it contains THCA, a compound that converts to delta-9 THC when heated, in a process known as decarboxylation. In other words, according to the publication, the plant does not produce intoxicating effects until it is heated, as occurs when smoked.

Since the Farm Bill did not include the concept of “total THC” in the legal definition of hemp, products with low levels of delta-9 THC but high in THCA have begun to be marketed as “THCA hemp flower.” According to the Cannabis Regulators Association, cited by the Missouri Independent, this loophole has allowed the sale of flowers and other products that are “indistinguishable” from marijuana sold in licensed dispensaries.

Defense of hemp retailers

The retailers named in the lawsuits contest the allegations. Jay Patel, owner of one of the sued shops and a board member of the Missouri Hemp Trade Association, called the action unfair. “This is an attempt to stifle competition and involve them in a costly and time-consuming lawsuit,” Patel told the Missouri Independent.

He does not deny that the products are chemically identical, but told the publication that federal legislation allows their marketing as long as the delta-9 THC content remains below 0.3%. Patel said he has documentation proving that the products were grown on hemp farms and tested according to federal law.

According to Patel, the association has been urging Missouri lawmakers to approve clear rules for labeling, testing, and age control for THCA hemp flower. He told the Missouri Independent that, while this does not happen, his shop and other members have adopted their own measures, although he acknowledges the existence of retailers who do not follow these standards.

The Missouri Independent also reports that, according to Patel, there are about 10,000 retailers in Missouri dealing with hemp-derived products, and that the coalition is primarily targeting small businesses in the St. Louis area.

Ongoing legislative debate

According to the Missouri Independent, the debate is occurring alongside the consideration of two bills in the Missouri state legislature. One of the proposals would allow the marketing of the products if Congress decides to maintain this possibility. The other includes an emergency clause that would immediately prohibit the products, regardless of future federal decisions.

McHugh told the publication that a preliminary injunction may become unnecessary depending on legislative progress. “This is marijuana,” he said to the Missouri Independent. “No one in Missouri has ever voted for the unregulated and unrestricted sale of marijuana to anyone passing by.”

Source: according to a report from Missouri Independent.