In Connecticut, the “HighBazaar” is a private cannabis event that has been held since 2022. The Masonic Temple Day Spring Lodge in Hamden hosts these events, which in the past has attracted hundreds or even thousands of people. The event is what many news outlets and politicians call a cannabis “gifting party,” where attendees pay a fee for entry and can purchase cannabis accessories or obtain “gifts” that come with cannabis.

Now, Connecticut Attorney General William Tong is claiming that the event violates state law. Tong recently sent a cease-and-desist letter to HighBazaar event hosts Joseph Accetulo and Cody Roberts. “Our office has become aware that you are involved in organizing recurring, unlicensed cannabis markets under the name HighBazaar. It appears that these events involve the illegal marketing and sale of cannabis outside of the regulated market and that the events are accessible to individuals under the age of 21,” stated the cease-and-desist letter. “These events appear to violate the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a, et seq., the Responsible and Equitable Regulation of Adult-Use Cannabis Act, General Statutes § 21a-420, et seq., and/or other applicable laws and regulations. We request that you cease holding these events immediately. If you do not do so, our office will explore all legal options.”

Neither hosts have commented on the letter yet, but CT Insider spoke with Christina Capitan, CT CannaWarriors founder who has previously been involved with HighBazaar. Capitan described Tong and his office are “against us in service of a corporate monopoly puts [former Gov.] Ned Lamont as the Face of the Drug War 2.0.” “While we are disappointed, we are not surprised, as this is simply a continuation of Gov. Lamont’s efforts to criminalize cannabis home growers while simultaneously denying anyone without millions the ability to get a legal license in Connecticut,” Capitan said.

Another CannaWarriors member, Ivellise Correa, explained the harmless nature of the events. “It’s just a flower. We’re not selling crack. This is a craft cannabis community,” Correa said.

Not everyone is happy with the current state of Connecticut’s cannabis industry. Louis Rinaldo told CT Insider why now is the time to reevaluate these cannabis events. “It’s time for us to collectively pivot to a more populist solution, one that opens up the market to local small craft producers and caregivers,” Rinaldo said.

While the HighBazaar has remained private, it has created a stark divide between advocates and politicians. “On one side we have a group of advocates whose net impact on cannabis policy has been regressive, after flaunting their exploitation of the gifting loophole and forcing state legislators to close it,” Rinaldo explained. “On the other side, we have elected officials who instead of serving the people, serve as enforcers of market share protectionism for the state’s four incumbent licensed producers. All while frustrated patients and consumers continue to source from outside Connecticut’s regulated market due to ongoing quality, pricing, and trust concerns.”

In March 2022, House Bill 5329 was introduced and by May it was signed by Gov. Ned Lamont. It implemented limitations for cannabis gifting, as well as a charge violators $1,000 for gifting.

Recreational cannabis sales launched in Connecticut in January 2023, allowed existing medical cannabis dispensaries to be licensed to sell adult-use cannabis. Immediately after sales began though, some legislators proposed changes to the state cannabis program, including new application fees.

In February, Attorney General Tong sued five retailers for conducting delta-8 THC cannabis products sales under the Connecticut Unfair Trade Practices Act. Cannabis products in Connecticut cannot be sold by unlicensed retailers and must meet rigorous testing and packaging requirements. Period,” said Tong. “Any unlicensed Connecticut retailer selling delta-8 THC products that purport to contain high levels of THC is breaking the law and may be subject to both criminal and civil penalties.”

Meanwhile, adult-use cannabis sales in Connecticut continue to rise. As of December 2023, annual cannabis sales earned between January 2023-November 2023 reached $127 million. That includes an increase in monthly sales for every month last year, with January kicking off sales at $5.1 million, followed by increases in February ($7.02 million), March ($9.6 million), April ($10.2 million), May ($11.5 million), June ($12.5 million), July ($13 million), August ($14 million), September ($14.3 million), October ($14.7 million), and November ( $15.3 million). Data for December 2023 sales has not yet been reported by the Department of Consumer Protection.

Medical cannabis on the other hand, has been fluctuating slightly in overall sales, with the lowest income recorded in January 2023 with $8.2 million, and the highest set at $12.6 million in March 2023.

Recently in December 2023 though, where alcohol sales are prohibited on Christmas Day and New Year’s Day, cannabis sales were still permitted. “And, because we regulate many things you may be wondering about, Connecticut Law does not prohibit the sale of cannabis, or limit your ability to place wagers during the holidays,” said Consumer Protection Commissioner Bryan T. Cafferelli. “No matter how you choose to spend the holidays, please know your limit, arrange designated drivers and be respectful of the establishments and communities where you celebrate.”

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Many of us have had the privilege of trying Maven Genetics’ French Laundry. In the August 2023 issue of High Times Magazine, we explored the brand’s impeccable selection of strains, French Laundry included, which won numerous awards this year at the Farmers Cup in February, The Emerald Cup in May, Zalympix in June, High Times Cannabis Cup SoCal: People’s Choice Edition 2023 in July, and the Transbay Challenge in August. Needless to say, it was French Laundry’s year. Unfortunately, due to receiving a cease and desist letter from The French Laundry restaurant in Yountville, California, Maven Genetics has announced that it will no longer be using the name.

“It is with a blend of pride and a touch of regret that Maven announces a significant development regarding one of our most celebrated strains, French Laundry,” Maven Genetics wrote in a press release. “As the year draws to a close, we face a challenging twist. Maven has received a cease and desist letter from the renowned Napa restaurant French Laundry, citing trademark infringement issues. Our strain’s name, meant as a playful tribute to its parent genetics, was never intended to infringe on any trademark. However, to avoid potential legal entanglements, we have made the difficult decision to retire the French Laundry name from our product lineup.”

Henceforth, the strain will be called FKAFL, which stands for “formerly known as French Laundry.”

Maven Genetics brand director Miguel De Vivo told Forbes that the name never intended to overlap with the trademarked “French Laundry” restaurant. FKAFL is a cross between LA Rouge and The Soap, and the name “French Laundry” was a blend of merging a laundry detergent theme with French inspiration brought by LA Rouge. “Little did we know, the cultivar got attention,” De Vivo said.

Although it’s a bummer to see French Laundry go, it’s hardly going to stop Maven Genetics from celebrating FKAFL and promoting many of the brand’s overall unique strain library. “Despite this turn of events, our commitment to innovation remains strong,” Maven Genetics wrote. “Our genetic library is brimming with exciting new strains, several of which are offsprings of French Laundry. We are confident that these new creations will uphold the esteemed legacy of French Laundry and eagerly anticipate their introduction to our community. We extend our heartfelt thanks to our customers and supporters for their passionate support of French Laundry. Your enthusiasm fuels our mission to continually push the boundaries of cannabis cultivation and breeding.”

Maven Genetics has already removed “French Laundry” from its website and is making immediate plans to make changes to product packaging as well. De Vivo added that this will be the last time we see French Laundry, but it’s just the beginning for FKAFL. “Given that we have many strains coming from that genetic lineage, we weren’t sure if we would continue with FL [French Laundry],” De Vivo explained. “However, with a few more amazing batches in production, it came down to figuring out, how are we going to reintroduce it to the market and potentially close the FL chapter on our terms.”

In a silver lining perspective, De Vivo added that it’s a big deal for a cannabis brand to get on the radar of a reputable restaurant like The French Laundry. “The normalizing aspect of it, the fact that we’re garnering attention from the culinary world at such a level,” says De Vivo. “For us, it’s surprising that they noticed. Being in the same realm is exciting.”

The past decade has changed a lot for the cannabis industry, not just with the increase of states legalizing medical and/or recreational cannabis, but a shift in cannabis product names from infringing upon trademarks to developing fully unique, trademarked names.

One of the first major examples of this was in June 2014 when Hershey filed a lawsuit against a Colorado-based edibles brand, called Tincturebelle, and a Washington-based dispensary called Conscious Care Cooperative, for using Hershey-inspired brand names. The suit was settled by October 2014.

In February 2014, a girl scout set up her cookie table outside of a Los Angeles dispensary and sold out within hours. The event garnered national attention, and eventually led the 

Girl Scouts of America to send a letter about the infringement of the strain Girl Scout Cookies upon its registered trademark in 2015.

Another prominent representation of this was in August 2017 when the glue company Gorilla Glue Co. filed a lawsuit against GG Strains for trademark infringement. By October 2017 they reached a settlement, which required the website gorillaglue4.com to be transferred to the ownership of the glue company, that any use of the word “gorilla” or gorilla imagery was prohibited, and the cannabis brand would refer to its products as “GG” instead. However, the settlement also stated that neither company would “disparage each others’ companies, services or actions,” according to a High Times report. GG Strains co-founder Ross Johnson remained optimistic about the situation. “We’re going to survive; we’re going to overcome it,” Johnson said. “Is it a setback? Most definitely, it is a setback. But it’s all behind us now, and it’s allowing us to move forward.”

Since then, many large companies have targeted cannabis brands for similar reasons.

In September 2017, a dispensary named Buds R Us in Detroit, Michigan, received a letter from Toys “R” Us threatening to sue for trademark infringement. In February 2019, UPS (United Parcel Service) sued cannabis delivery businesses like United Pot Smokers, UPS420, and THCPlant. In July 2019, Sour Patch Kids candy maker also targeted illegal cannabis makers marketing their products as “Stoney Patch.” Mars Wrigley won a trademark lawsuit in August 2022 for the use of Skittles likeness on illegal cannabis products.

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With legal sales of recreational cannabis in New York still months away, state regulators are cracking down on unlicensed businesses that have jumped the gun and are already selling weed. Last week, officials with the New York Office of Cannabis Management (OCM) publicly identified 52 businesses that have been sent cease-and-desist orders directing the shops to stop all illicit cannabis sales.

“You are hereby directed to cease any, and all, illegal activity immediately,”  read the cease-and-desist letters quoted by The Gothamist. “Failure to cease this activity puts your ability to obtain a license in the legal cannabis market at substantial risk.”

The OCM added that the identified retailers were falsely depicting their businesses as licensed cannabis dispensaries. OCM Chair Tremaine Wright said in a press release that unlicensed sales, including via businesses that provide ostensibly free marijuana products with the purchase of other merchandise, are illegal and pose a health risk to the community.

“There are no businesses currently licensed to sell adult-use cannabis in New York State. Selling any item or taking a donation, and then gifting a customer a bag of untested cannabis does indeed count as a sale under New York’s Cannabis Law,” Wright said in a statement from the agency. “You need a license to sell cannabis in New York. Licensed sales and a regulated market are the only way New York’s customers will be assured that the cannabis products they are purchasing have been tested and tracked from seed to sale. Sale of untested products put lives at risk.”

Businesses Face Permanent Ban from Legal Weed Industry

The cease-and-desist letters sent by the OCM note that continued illicit sales of marijuana by the identified retailers will make the businesses ineligible to receive a cannabis business license from the agency in the future. If the business storefronts named by the agency fail to end operations immediately, they will be referred to Cannabis Control Board “for permanent barring from receiving any cannabis licenses in New York State,” the agency stated.

“These stores are masquerading as licensed, regulated businesses, but they are nothing of the sort. They aren’t creating opportunity, they are creating confusion – New Yorkers think they’re buying a high-quality, tested product when they aren’t,” said Chris Alexander, executive director of the Office of Cannabis Management. “Not only are these stores operating in violation of New York’s Cannabis Law, but they also are breaking state tax and several municipal laws. I look forward to working with other regulatory bodies across the state to hold these stores accountable for their flagrant violations of the law.”

The identified businesses were originally sent cease-and-desist orders in February, advising them that their operations were illegal under the Marijuana Regulation and Taxation Act (MRTA), which was passed by New York lawmakers last year. The OCM announced the regulatory action at the time but declined to publicly identify the affected retailers. But after pressure from local media, the OCM made the list of storefronts that had been warned by the agency available last week.

“We have an obligation to protect New Yorkers from known risks and to strengthen the foundation of the legal, regulated market we are building. We will meet the goals of the MRTA to build an inclusive, equitable and safe industry,” Wright said in February. “Therefore, these violators must stop their activity immediately, or face the consequences.”

More Retailers Being Investigated

The OCM also noted last week that it has received information from law enforcement and the general public about additional retailers who may be selling cannabis in violation of the law and will be reviewing the tips for possible additional regulatory action. The agency added that until sales of adult-use begin at licensed retailers, which is expected to happen later this year, the only legal way to procure safe, lab-tested cannabis is through the state’s regulated medical marijuana program.

“New York is building the most equitable cannabis industry in the nation, one that prioritizes those communities most harmed under cannabis prohibition. Stores selling unregulated cannabis products without licenses undercut those efforts. Plain and simple,” said Damian Fagon, OCM chief equity officer. “Illicit stores don’t contribute to our communities, they don’t support our public schools and they don’t protect consumers. That’s why we’re working with partners across [the] government to investigate these operations and hold them accountable.”

One of the operations identified last week by the OCM is the Empire Cannabis Club, which has two locations in Manhattan. At Empire, customers purchase a daily or monthly membership to the club and receive cannabis as a free gift. Steve Zissou, a lawyer representing Empire, said that the company is confident that its operation is legal under the MRTA, which defines what constitutes a “sale” of cannabis and specifically allows the transfer of up to three ounces of cannabis “without compensation.”

“Empire’s business model is based on that,” said Zissou. “It’s a non-charitable, not-for-profit cannabis dispensary that does not receive compensation for the transfer of cannabis.”

The attorney added that Empire is prepared to defend its position in court if necessary.

“There’s an old saying: If you want peace, prepare for war,” Zissou said. “And so Empire wants peace, but they’re prepared for war if and when it comes.”

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