More Cannabis Companies Targeted By Class-Action Suits

A growing number of cannabis businesses are being sued for violating the Federal Telephone Consumer Protection Act (TPCA) according to an investigation by Marijuana Business Daily. The report found at least 12 class-action lawsuits from around the country that alleged cannabis businesses spammed customers with deals and sales, starting in May 2018.

“These cases are often low-hanging fruit for litigious attorneys,” said Michael Sampson, a Pittsburg-based attorney, in the report. “Businesses should triple-check their marketing approaches.” Sampson also said such settlements can sometimes reach six figures and could bankrupt a fledgling cannabis business.

California-based attorney Mark Roth also warned cannabis companies to be careful.

“It’s the new ambulance chasing. If you don’t agree to pay a would-be plaintiff’s demand — which could be substantial — on the grounds that you had their consent to send them the text message at issue, they can still sue you anyway and you would be forced to defend the matter, which will cost more than the initial demand amount.“ — Roth, in an interview with MJBizDaily

Roth said that to avoid a potential lawsuit, it’s important to get written consent before businesses send any marketing materials to customers.

“Consent, consent, consent. Kind of like location, location, location,” he said. “That’s the holy grail, if you will, of protecting yourself from liability. If you have consumer consent … you’re fine. You’re bulletproof.”

The cannabis delivery service Eaze solutions was one of the first cannabis companies sued for “unsolicited” text messages in 2018, according to the report. A San Diego resident sued for $2000 per unsolicited text, but the case was later dismissed and sent to private arbitration. Some of the other cases uncovered by the investigation ranged from cultivation supply companies to dispensaries/retail stores in Colorado, California, and Washington.

A report in April by the global law firm Goodwin found that class-action suits against cannabis companies rose 116% from the years 2018-2019.

Originally Published on 2020 10 22 by Lukas Barfield |

Thank you for joining us today for our latest news post. If you have any questions or comments about this post, we’d love to hear from you in the comments! Join the newsletter to stay up to date on the latest Industry News and keep an eye out for our next news article!

Disclaimer: This content was sourced from and republished to our website to add value and additional content for our readers. In order to maintain the safety, functionality, and integrity of, the sourced content may have been altered. To access the original content, please click the link below:


The Editor

The Editor is the internet's largest CBD stores directory. Browse 100s of CBD businesses, find CBD near you, and more!
  • Comments are closed.
  • Sign Up For Our Newsletter

    Stay informed with the latest articles on our CBD blog

    Related Posts

    CBD hemp oil, Hand holding bottle of Cannabis oil against Marijuana plant. Herbal Treatment, Alternative Medicine

    How CBD Can Help You

    With more and more CBD products entering the market every year, the CBD industry is growing at a rapid pace. The industry is projected to

    Pin It on Pinterest