A Denver District Court this month dismissed a lawsuit against Colorado’s Marijuana Enforcement Division that alleged the agency failed to protect consumers from contaminated products and ineffectively handled bad actors in the marketplace.
The ruling stated that San Luis Valley-based cannabis company Mammoth Farms attempted to circumvent the normal process for handling disputes involving regulation and enforcement by taking its issues to the court.
Mammoth Farms CEO Justin Trouard told The Denver Post he plans to appeal the decision.
Specifically, Mammoth Farms alleged that regulators ignored companies that are diverting legal weed to illicit markets in other states. It also alleged the agency’s marijuana tracking and testing protocols are insufficient to identify bad actors and allow potentially dangerous products to reach cannabis consumers.
A Denver Post investigation this spring found that gaps in testing oversight allow contaminated weed products to make it to dispensary shelves, despite the state’s rigorous testing protocols.
In an industry bulletin, the Marijuana Enforcement Division said it remains dedicated to prioritizing consumer protections and preventing youth access, adding the agency will not tolerate businesses that deliberately disregard regulations to put youth and consumers at risk.
“When there are concerns about bad actors and safety risks in the regulated market, a licensee’s willingness to provide information is not something we take lightly,” said Dominique Mendiola, senior director of the enforcement division, in the statement. “There are legal requirements we must follow to maintain the integrity and legality of our agency actions, so it’s important to let investigations and due process take their course.”
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