Colorado CBD Company Agrees to Pay $225k Settlement

Pueblo, Colorado-based Bee’s Knees CBDs and its owner Joseph Leyba have agreed to pay the state attorney general’s office a $225,000 settlement after an investigation found the company had misrepresented the source of its products, failed to verify customers’ ages, mischaracterized some products as “organic,” and claimed false partnerships with nonprofit conservation groups.

The fines could increase to $495,000 if the company fails to comply with the settlement’s terms, which include the initial $225,000 over a series of payments and the company’s pledge to “fully comply with state law” moving forward, Colorado AG Phil Weiser’s office said in a press release.

Bee’s Knees sells industrial hemp-derived cannabinoid products both wholesale and on its website directly to consumers. While many of the company’s offerings include non-intoxicating products like CBD gummies and topicals, some of the products are infused with hemp-derived THC — and, while the website lists the products as being restricted to customers aged 21+, the products could previously be purchased without providing proof-of-age, the release said.

“Colorado is committed to maintaining an effective system of overseeing the sale of legal cannabis products — one that keeps it out of the hands of kids, ensures safety standards, requires chain-of-custody tracking, and gives consumers important information about the products they buy. In this case, the company misrepresented to their customers the source and nature of their products and sold intoxicating products without verifying the age of customers. This settlement will hold them accountable for those violations of the law and will ensure compliance in the future.” — Colorado Attorney General Phil Weiser, in a statement

An attorney for Bee’s Knees told Westword that the company is “happy to have this issue behind us and are 100 percent committed to making safe and compliant products available in Colorado. We look forward to working with the local officials to continue offering great products.”