Nebraska Attorney General Targets Lincoln Hemp Retailers in Expanding Statewide Crackdown

More Than 80 Stores Receive Cease-and-Desist Letters for Alleged Violations of THC Laws and Labeling Regulations

Nebraska Attorney General Mike Hilgers has escalated his legal campaign against the retail sale of intoxicating hemp-derived products across the state. On June 18, his office issued cease-and-desist letters to 82 businesses operating in Lincoln, warning them to immediately halt the sale of THC-containing products or face potential legal consequences.

This latest enforcement action is part of a broader crackdown on the state’s hemp retail sector, which Hilgers contends is distributing mislabeled, illegal, and potentially dangerous substances under the guise of hemp. These actions follow a previous wave in March, where 104 similar letters were delivered to stores operating in Omaha. In total, 204 businesses across Nebraska have now been formally accused of violating state consumer protection and trade laws.

Attorney General Alleges Statewide Violations of Multiple Nebraska Laws, Citing Deceptive Practices and Controlled Substance Sales

According to the attorney general’s office, the stores in question are allegedly violating the Nebraska Consumer Protection Act, the Uniform Deceptive Trade Practices Act, and the Nebraska Pure Food Act. The accusations stem from investigations showing widespread noncompliance with THC limits and the use of misleading product labeling.

In collaboration with the Lancaster County Sheriff’s Office, Hilgers’ office conducted a series of product purchases from 39 different companies, revealing that the overwhelming majority of the sampled items either exceeded the legal 0.3% delta-9 THC limit or contained synthetic cannabinoids deemed unlawful in Nebraska.

In a public release, the attorney general’s office stated that more than 90% of the tested products were inaccurately labeled, creating a serious concern for both consumer safety and public health. Improper labeling, combined with sales of controlled substances, positions these retailers as participants in deceptive and unsafe commercial practices, the office contends.

Stores Face Legal Action Unless They Cease THC Product Sales Within 30 Days

Each of the 82 Lincoln-based stores served on June 18 was provided with a formal cease-and-desist notification that includes a settlement document. This legal notice demands that businesses sign a voluntary compliance agreement within 30 days, committing to the complete cessation of THC product sales.

Failure to comply will result in litigation led by the attorney general’s office, with potential consequences including steep financial penalties and criminal charges. Stores that refuse to remove or discontinue the sale of these products may face fines of up to $4,000 per illegal product sale, under the state’s consumer laws.

Additionally, many of the cited businesses hold active tobacco licenses, and the sale of synthetically derived THC products—frequently associated with delta-8 and similar compounds—could jeopardize those licenses. The overlap between synthetic cannabinoid sales and traditional tobacco retail has drawn further scrutiny from state regulators.

Legal and Legislative Landscape Shows State’s Hardline Stance on Intoxicating Hemp Derivatives

The enforcement wave comes in the wake of failed legislative efforts to more tightly regulate hemp and its derivatives within the state. Legislative Bill 316, introduced by State Senator Kathleen Kauth (R-Omaha), aimed to define hemp more narrowly, ban certain intoxicating products, and establish a THC limit of 10 milligrams per package. Although the bill did not pass, the intent behind it aligns with the attorney general’s recent actions.

Despite the absence of updated legislation, Nebraska’s current criminal statutes already make it a felony to sell any quantity of cannabis, carrying a maximum penalty of 20 years in prison and a $25,000 fine. Hilgers’ office has signaled its willingness to pursue maximum penalties when appropriate, reflecting a broader zero-tolerance approach.

Pressure Mounts on Retailers as Regulatory Net Tightens Around Hemp Industry

With the cumulative issuance of over 200 cease-and-desist letters, Nebraska’s hemp retail sector faces mounting legal and operational pressure. The state’s top legal authority has made it clear that continued noncompliance will trigger court actions and potential criminal referrals.

The crackdown signals a decisive shift in Nebraska’s handling of the hemp industry, especially regarding intoxicating cannabinoids that have existed in legal gray areas since the passage of the 2018 Farm Bill. As more retailers come under investigation, many may be forced to remove controversial products, alter supply chains, or cease operations entirely.

The message from the attorney general’s office is unequivocal: the unregulated sale of psychoactive hemp derivatives in Nebraska will not be tolerated, and failure to voluntarily comply may result in swift and severe legal consequences.