Gifting parties—events that allow guests to buy a random item that includes a cannabis “gift”—will be subject to strict rules after Connecticut’s attorney general arrived at an agreement with organizers of one such event that attracted attention of state officials.

Attorney General William Tong announced May 15 that he reached an agreement, with stipulations, that HighBazaar organizers Joseph Accettullo and Cody Roberts can continue running gifting parties, however, the parties will not resemble what they used to be.

For $20 per ticket, attendees could gain entry to the event to buy accessories or other items and receive cannabis “gifts” on the side in an attempt to cut corners—namely, avoiding the law requiring sellers to have a license. Connecticut banned cannabis gifting events in 2022.

Tong alleged that HighBazaar events were essentially cannabis marketplaces that subverted Connecticut’s legal, regulated cannabis market. HighBazaar’s gifting events were canceled last January after Tong issued cease-and-desist orders in a letter to organizers and the venue.  

“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,” the letter read. Tong warned that the markets appeared 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, and/or other applicable laws and regulations. But Tong reached an agreement with HighBazaar that will allow them to continue to operate with several restrictions.

“HighBazaar operated unlawful cannabis markets where vendors peddled untested, illegal products. Not anymore. This stipulated judgment forces a series of strong, ongoing obligations, including clear and conspicuous disclosures and acknowledgements that the sale, distribution and exchange of cannabis will be strictly prohibited at any HighBazaar event. We will be watching closely—including unannounced inspections—to ensure strict, ongoing compliance,” said Attorney General William Tong.

The stipulations include that Accettullo and Roberts must make clear and conspicuous disclosures at HighBazaar events and on any advertisements that the sale, distribution, or exchange of cannabis will be strictly prohibited. 

All prospective vendors must be notified in advance, and must acknowledge in writing that they will not sell, offer, distribute, or exchange cannabis at any HighBazaar event. judgment provides the Office of the Attorney General the right to enter and inspect HighBazaar premises at any time to ensure compliance with the agreement.

CT Insider reports that Alex Taubes, an attorney for HighBazaar organizers, called the judgment a “great victory” and said he was “pleased that the state finally saw some reason.”

The Office of the Attorney General also previously sent notice to EventBrite, where HighBazaar was promoting its gifting events. The letter warned that such posts violate EventBrite’s own Community Guidelines and that the events they promoted also violate Connecticut law. The Office of the Attorney General has an active and ongoing investigation into EventBrite’s continued marketing of unlicensed cannabis markets in Connecticut.

Assistant Attorneys General Jonathan Blake and Addison Keilty, and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section, assisted the Attorney General in this matter.

Cannabis Legal Loopholes in Connecticut

Another legal loophole in Connecticut led to THC-infused seltzers surging in popularity.

Liquor stores in Connecticut are selling THC-infused drinks such as seltzers legally, due to a legal loophole regarding dosages listed on the cans.

Cannabis retail stores are selling cans listed as one serving, but the same cans of cannabis-infused seltzer, usually running in sizes from 7.5 – 12 ounces, are labeled as five servings in a package at a liquor store or market.

All they have to do is ensure that each serving contains less than 1 mg of THC per serving and they can sell the seltzers without violating state law. CT Insider reports that when the drinks are labeled as five servings rather than one, they are technically legal to be sold anywhere in the state, so long as other elements of the packaging are in line with state rules.

Connecticut’s Department of Consumer Protection (DCP) clarified that the drinks are indeed legal. “A package containing less than 1 milligram of THC per serving and less than 5 milligram per package is not considered cannabis, and may be produced and sold without a license,” DCP spokesperson Kaitlyn Krasselt confirmed. 

Connecticut legalized adult-use cannabis in 2021 and later became available for purchase by adults at retail outlets in January 2023. Connecticut Gov. Ned Lamont signed legislation to legalize adult-use cannabis in June 2021, ending the prohibition on possession of cannabis by adults 21 and older and creating a framework for regulated adult-use cannabis sales. Connecticut’s cannabis market showed steady growth

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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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