The hemp industry scored a significant victory when a New Jersey judge ruled that the state cannot enforce parts of a new law that treat out-of-state hemp products differently.
The ruling by U.S. District Judge Zahid Quraishi came two days before an Oct. 12 deadline for businesses to remove hemp products such as CBD lotions, hemp-based drinks and delta-8 gummies from their shelves.
The judge ruled that New Jersey cannot label a product as “intoxicating” and restrict its sale if it complies with the laws in the state where it was made.
‘A win for hemp’
“This court order is a win for hemp and enjoins parts of the law that were in contention with the state, including federal preemption,” Adam Terry, CEO and co-founder of Massachusetts-based, hemp-derived beverage company Cantrip, told MJBizDaily via email.
“We are pleased that it maintained the prohibition on selling to minors, as Cantrip is committed to making these products only available to adults.”
Cantrip was among seven plaintiffs listed on the complaint against the state.
Terry said he expects more laws will be issued on the matter but indicated that Cantrip is vindicated in its belief that an outright ban on hemp is not the path forward.
“We must work together with lawmakers to develop sensible regulations that keep these products in the hands of adults that want them and away from the hands of children and teenagers while generating critical tax revenue for the state of New Jersey,” he added.
Law favored NJ operators
In September, New Jersey Gov. Phil Murphy signed a bill into law limiting the manufacture and sale of hemp products to those already licensed by the New Jersey Cannabis Regulatory Commission.
About two weeks after Murphy signed the law, the seven hemp businesses filed a lawsuit seeking a preliminary injunction to stop most of the law from taking effect.
The plaintiffs included New Jersey-based hemp retailers, out-of-state manufacturers who sell products to retailers in the state and hemp-derived beverage companies whose products are shipped there.
The defendants named in the suit were New Jersey Attorney General Matt Platkin, Cannabis Regulatory Commission Chair Dianna Houenou and state Agriculture Secretary Edward Wengryn.
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
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