Wholesaler RZ Smoke agrees to $2 million judgment over unlicensed cannabis sales in Connecticut
The Connecticut attorney general's office said the company sold high-potency cannabis products to smoke shops, gas stations and convenience stores without a state license. It will pay $375,000, with the rest of the judgment suspended.
A wholesale company accused of selling high-potency cannabis products to smoke shops, gas stations and convenience stores across Connecticut without a state license has agreed to a $2 million stipulated judgment, Attorney General William Tong's office said Friday.
Under the settlement with RZ Smoke, Inc., the company will pay $375,000 to the state, and $1.6 million of the judgment is suspended to ensure it complies with state law, the office said. The company is barred from making, packaging, selling, distributing or storing intoxicating THC products in Connecticut unless the state Department of Consumer Protection licenses it to do so.
In May 2023, Department of Consumer Protection drug control agents and Suffield police searched a warehouse in Suffield associated with the company and found 11 pallets of cannabis products with an estimated retail value of $792,000, according to the attorney general's office.
Tong's office filed an enforcement action against RZ Smoke in January 2024, alleging violations of Connecticut's Unfair Trade Practices Act.
Adults 21 and older may legally possess and use cannabis in Connecticut, but cannabis products may be sold only in the state's regulated market, where they must meet testing and packaging requirements, the office said. Products sold outside that market remain illegal, and sellers can face civil and criminal penalties, according to the office.
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