Nebraska’s Attorney General has launched a significant legal battle against a California-based THC wholesaler, accusing the company of deliberately targeting underage individuals through deceptive online marketing practices. This marks a critical escalation in the state’s efforts to curb the distribution of mislabeled cannabis products and enforce consumer protection laws.
The complaint, filed in Lancaster County District Court, names Savage Enterprises as the defendant, alleging widespread violations by marketing products with illegal amounts of THC to teens across the nation, including within Nebraska. This legal action represents the 16th such lawsuit filed by Attorney General Mike Hilgers against a THC retailer, underscoring a persistent campaign against the burgeoning industry.
While recreational marijuana remains illegal in Nebraska, lawmakers in 2019 legalized hemp-derived products containing no more than 0.3% Delta-9 THC. This specific legal nuance, however, left a loophole for other cannabinoids like Delta-8, which the Attorney General’s office has actively sought to regulate through a series of lawsuits and over 200 cease-and-desist letters over the past two years, aiming to clarify THC regulation.
For the first time, Attorney General Hilgers’ office has extended its legal reach beyond state borders, directly challenging the California wholesaler. The lawsuit claims that Savage Enterprises has “repeatedly jeopardized the health and safety of Nebraska’s youngest citizens” by advertising and selling THC products in packaging specifically designed to appeal to a vulnerable, underage demographic.
A core accusation in the lawsuit centers on Savage Enterprises’ alleged use of sophisticated teen marketing strategies. These tactics reportedly include leveraging social media influencers on platforms like YouTube and Instagram, deploying memes, organizing product giveaways, and utilizing communication channels such as Discord. The state asserts that the company knew, or should have known, these methods would resonate strongly with minors.
The legal documents specifically highlight the role of influencers, described as “young, attractive models who post sexually provocative images of themselves using Savage Enterprises products,” effectively serving as “hype” individuals for the company’s offerings. This direct appeal to a young audience underscores the severity of the alleged deceptive trade practices.
Further compounding the allegations, Hilgers’ office conducted independent testing on a sampling of seven of Savage Enterprises’ vape and edible products. The results indicated significant discrepancies, with none of the products accurately labeled, often containing higher concentrations of THC than advertised. This mislabeling poses significant health risks, especially to young consumers unaware of the true potency.
In light of these findings, the Attorney General’s office has petitioned a District Court judge for a permanent injunction, seeking to prohibit Savage Enterprises from conducting business within Nebraska. Additionally, the state is pursuing substantial civil penalties for the alleged breaches of Nebraska consumer protection and deceptive trade laws, signaling a firm stance against such marketing.
