Lawsuit Claims Iowa Approved THC Drinks With 10 Servings per Can

Iowa Companies Challenge State’s New THC Limits in Carbonated Beverages

Des Moines, IA – Ten Iowa companies have filed a lawsuit against the state, aiming to block the enforcement of a new hemp law that restricts the levels of THC in beverages and other consumables. The plaintiffs argue that the law, based on House Files 2605 and 2641 passed this year, is preempted by federal law and leaves them uncertain about what constitutes lawful business practices.

The companies, which include Climbing Kites, Field Day Brewing Co., HW Premium CBD, and others, claim that state regulators have knowingly approved the sale of 12-ounce cans of THC-infused beverages labeled as containing up to 10 servings. They argue that the new law, which limits THC to four milligrams per serving, does not define a serving, leading to confusion and potential criminal liability.

State’s Position and Legal Arguments

In court filings, the Iowa Attorney General’s office argued that no state defines serving sizes for food and beverage manufacturers, as federal law requires companies to calculate and label serving sizes. “To know how many servings are in their products, [the companies] need only look to the side of their cans,” the attorney general’s office stated. “Once they see the number of servings that they are federally required to list, they can compare it with the amount of THC in the beverages.”

The companies contend that this vagueness has led to their products being “shadow banned” by retailers, who are now reluctant to sell them. They also argue that state regulators have not provided clear guidance on which products are legal, despite claiming that the legality of products can be easily determined.

Historical Context and Current Dispute

Historically, the state appears to have accepted manufacturers’ recommendations for serving sizes, approving beverages with varied servings per container. According to Dan Caraher, director of operations for Field Day Brewing Co., the Department of Health and Human Services (DHHS) was aware that some cans contained as many as 10 servings but approved them nonetheless.

The attorney general’s office asserts that the state has a vested interest in limiting THC in consumable products to protect public safety. They cited a 1,050% increase in calls to the Iowa Poison Control Center related to children’s exposure to THC and a significant rise in emergency room visits due to THC consumption.

Federal Preemption and Vagueness Concerns

U.S. District Court Chief Judge Stephanie M. Rose recently denied an initial motion by Climbing Kites and Field Day for a preliminary injunction. The denial was based on the argument that the state law is preempted by federal law. However, Judge Rose expressed “serious concerns” about the law’s vagueness, noting that it might be unconstitutional due to the lack of a clear definition for a serving size.

Following Judge Rose’s remarks, Climbing Kites and Field Day incorporated the vagueness argument into their case and renewed their push for an injunction. They argue that without a clear definition of a serving, enforcement of the THC limits is impractical and legally ambiguous.

Ongoing Legal Battle

The lawsuit is a critical test of the balance between state and federal regulations regarding THC and hemp products. As the legal proceedings continue, the outcome will likely have significant implications for the hemp and cannabis industries in Iowa and possibly set a precedent for other states with similar regulations.

The companies involved in the lawsuit include Climbing Kites, Field Day Brewing Co., HW Premium CBD, American Shaman, Greene Goods Market and Greenhouses, Your CBD Store, Beyond CBD, Campbell’s Nutrition Centers, Sky High, and Icanna of Iowa. The case highlights the ongoing tensions and legal complexities in the regulation of THC-infused products and the broader implications for businesses and consumers.

As Iowa grapples with the implementation of its new hemp law, the outcome of this legal challenge will be closely watched by industry stakeholders and regulators alike. The clarity and enforceability of THC regulations are at the heart of this dispute, with significant consequences for public safety, business operations, and the legal landscape of cannabis products in the state.