Capitol Hemp and District Hemp Botanicals File Lawsuit Against D.C. Over Hemp Product Enforcement

In a significant legal development, two local hemp businesses, Capitol Hemp LLC and District Hemp Botanicals LLC, have taken a stand against the District of Columbia by filing a lawsuit on October 18, 2024. The lawsuit alleges that D.C. officials are unfairly targeting these businesses for selling hemp products that are federally legal under the 2018 Farm Bill.

The Basis of the Lawsuit

The plaintiffs claim that the District is misapplying outdated cannabis laws to their hemp operations, resulting in unlawful inspections, embargoes, and the looming threat of business closures. As the city intensifies enforcement against unlicensed and allegedly illegal cannabis gifting shops, these businesses argue they are being unjustly caught in the crossfire.

State and Federal Law Discrepancies

According to the lawsuit, D.C. and its Alcohol Beverage and Cannabis Administration (ABCA) erroneously consider hemp to fall under the cannabis category, despite federal standards established by the 2018 Farm Bill. This misunderstanding was echoed by Fred Moosally, who stated at a recent panel that businesses in D.C. need a medical cannabis license to sell CBD products. The hemp retailers assert that this claim is false—their products align with federal regulations and are readily available through national retailers and online shipping services.

Voices from the Industry

Alan Amsterdam, owner of Capitol Hemp, expressed his frustration: “We sell the exact same products you can find on the shelves of national chains like Whole Foods and organic markets like MOM’s. D.C. residents can order them online and receive them through the U.S. Postal Service without issue. Yet, ABCA and its task force continue to target small, independent businesses like ours.”

The lawsuit argues that such enforcement actions are not only discriminatory but also arbitrary, disproportionately impacting small businesses while larger corporate entities operate without similar scrutiny. “We’ve reached out to agencies, elected officials, and even the office of the D.C. attorney general, but no one has replied,” added Amsterdam.

D.C.’s Non-Response and Impact on Businesses

Despite their attempts to seek clarification and assert their rights, both hemp companies found themselves facing silence from the District. “We’ve repeatedly asked the District to clarify its position and create a clear distinction for legal hemp products,” Amsterdam stated further. “Instead, we’ve faced silence, arbitrary enforcement actions, and escalating threats to our business.”

The ABCA relies on a 2021 letter from D.C. Deputy Attorney Brian Flowers, which indicated that CBD is classified as cannabis in D.C. The lawsuit claims that the ABCA misinterprets this memorandum, leading to wrongful classifications and enforcement actions against the hemp businesses.

The Economic Stakes

Barbara Biddle, owner of District Hemp, emphasized the severe impact these actions have had on their businesses: “Our businesses are under severe strain. The District’s refusal to update its laws to reflect federal definitions of hemp has forced us into a legal battle for our survival.”

The economic repercussions have been dire, with the lawsuit alleging that these enforcement actions have resulted in over $500,000 in damages to the plaintiffs’ businesses. They are seeking an injunction to stop the alleged unlawful enforcement and prevent more damage, arguing that such actions not only violate the law but also harm the local economy.

Conclusion

This lawsuit marks a pivotal moment for the cannabis and hemp industry in D.C. as local businesses strive to advocate for their legal rights within a marketplace that has become increasingly complex amid evolving regulations. The outcome of this case could have far-reaching implications for hemp retailers and the cannabis landscape in the District of Columbia.