Two local businesses, Capitol Hemp LLC and District Hemp Botanicals LLC, filed a lawsuit on Oct. 18, 2024, against the District of Columbia, alleging that the city’s officials are unlawfully targeting them for selling federally-legal hemp products.
The businesses claim that the District is applying outdated cannabis laws to hemp, despite the clear distinction between the two under federal law. This has resulted in unlawful inspections, embargoes and the threat of business closures. As D.C.’s enforcement against unlicensed and even illegal cannabis gifting shops escalates, these hemp businesses say they are unfairly being swept into the mix.
D.C. and the Alcohol Beverage and cannabis Administration consider hemp to be included as cannabis in the District laws despite the 2018 Farm Bill that legalized hemp federally. Fred Moosally stated this week on a panel that business must have a medical cannabis license in D.C. to sell CBD. The hemp shops argue this is not true. They believe the federal law extends to district businesses including big corporate chains that sell CBD or hemp products like grocery stores.
“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 by mail through the U.S. Postal Service with no issue. Yet, ABCA and its task force continue to target small, independent businesses like ours,” said Alan Amsterdam, the owner of Capitol Hemp. The lawsuit argues that the District’s enforcement actions are discriminatory and arbitrary, as they target small businesses while allowing larger retailers to sell the same products without interference.
“We’ve reached out to agencies, elected officials, and even the office of the D.C. attorney general, but no one has even replied much less given us any answers,” he continued.
“We’ve repeatedly asked the District to clarify its position and to create a clear distinction for legal hemp products. Instead, we’ve faced silence, arbitrary enforcement actions, and escalating threats to our business,” he added in the press release.
ABCA refers to a 2021 letter from D.C. Deputy Attorney Brian Flowers issued to ABCA Assistant General Counsel Jonathan Berman covering whether CBD is considered cannabis in D.C. The lawsuit alleges that ABCA relies incorrectly on this memorandum to classify CBD as cannabis.
“Our businesses are under severe strain,” said Barbara Biddle, the owner of District Hemp. “The District’s refusal to update its laws to reflect federal definitions of hemp has forced us into a legal battle for our survival. We cannot simply sit back while our livelihoods are destroyed.”
The lawsuit states that the result of enforcement has been “devastating,” resulting in over half a million dollars in damages to their businesses. The businesses are seeking an injunction to halt the District’s alleged unlawful enforcement actions and prevent further harm. They believe that the District’s actions are not only illegal but also detrimental to the local economy.
