New Jersey marijuana companies scrutinized for ‘gifting’ practice

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

Four marijuana companies in New Jersey are coming under fire from the state attorney general’s office for giving away cannabis to customers who buy other items such as snacks or baked goods.

According to Philly Voice, Attorney General Gurbir Grewal and the Division of Consumer Affairs issued cease-and-desist orders to four businesses across the state for the practice, which is known as “gifting.”

For example, Slumped Kitchen, a cannabis delivery service based in Marlton, was delivering brownies and cookies along with a “gift” of up to 1 ounce of marijuana.

Slumped Kitchen is now the target of an investigation for violating the state’s Consumer Fraud Act.

Each misrepresentation in the sale or advertising of merchandise is a separate violation, and violators may be fined $10,000 for the first violation and $20,000 for each subsequent infraction.

Also issued cease-and-desist letters were Pine Brook-based Sky High Munchies, Belmar-headquartered and Rutherford-based West Winds Wellness.

“We will not allow vendors to misrepresent what they’re selling,” said Kaitlin Caruso, acting director of the New Jersey Division of Consumer Affairs.

Gifting has received mixed reactions in other legal marijuana markets, ranging from Vermont’s crackdown on the practice to Michigan’s acceptance of such actions.