By MjInvest Editor in Chief on Friday, 17 May 2024
Category: Cannabis Business Executive

CT Attorney General Announces ‘Settlement’ with HighBazaar

The headline of Tuesday’s announcement by Connecticut Attorney General William Tong stated that his office had reached a ‘settlement” with HighBazaar, the longstanding and very popular Connecticut sesh that earned the ire of the powers that be. But the settlement is really a stipulated judgment, basically an order of the court, that also comes with a $20,000 fine for HighBazaar’s organizers, Joseph Accettullo and Cody Roberts, that will be suspended if they comply with all terms of the judgment. And that’s the rub. The settlement is a ball-buster.

As explained in the AG announcement, the stipulations are literally binding:

The judgement requires Accettullo and Roberts to make clear and conspicuous disclosures at HighBazaar events and on any advertisements that the sale, distribution, or exchange of cannabis will be strictly prohibited. All prospective vendors must be notified in advance and must acknowledge in writing that they will not sell, offer, distribute, or exchange cannabis at any HighBazaar event. Further, anyone under 21 must be prohibited from attending HighBazaar events. The stipulated judgment gives the Office of the Attorney General the right to enter and inspect HighBazaar premises at any time to ensure compliance with the agreement.

The rationale for this tough love is explained by Tong himself in a prepared quote. “HighBazaar operated unlawful cannabis markets where vendors peddled untested, illegal products,” he said. “Not anymore. This stipulated judgment forces a series of strong, ongoing obligations, including clear and conspicuous disclosures and acknowledgements that the sale, distribution, and exchange of cannabis will be strictly prohibited at any HighBazaar event. We will be watching closely—including unannounced inspections—to ensure strict, ongoing compliance.”

Those comments are backed up by years of failed attempts by the Department of Consumer Protection (DCP) and the AGs office to put HighBazaar out of business once and for all. Their efforts culminated this January in a request for a temporary injunction against the HighBazaar organizers filed in state Superior Court, as well as cease-and-desist letters sent to Accettullo and Roberts, their landlord, and Eventbrite, which promoted HighBazaar events online, warning of severe monetary penalties for inaction. The hard ball worked, causing HighBazaar to suspend activities, and eventually leading to the stipulated judgment.

The suppression of HighBazaar is also meant to send a message that the state will not tolerate the exchange of unlicensed cannabis, but it is a fine line. Currently, gifting cannabis is legal, defined as:

People with a bona fide social relationship may give cannabis to one another if the gift is made without a promise of payment or exchange of other goods and services and is not associated with a commercial transaction.

But the state also forbids gifting that is associated with an event, club, or location:

Individuals are prohibited from gifting, selling, or transferring cannabis to another person:

To induce, or in exchange for, any donation for any purpose, including any charitable donation or any donation made to gain admission to any event. At any location, other than a dispensary facility, retailer, or hybrid-retailer, or any location that requires any form of payment, including membership in any club, to gain admission to the location. As part of any giveaway associated with attendance at any event, including a door prize, goodie bag, or swag bag.

It’s not surprising to see official consternation about unlicensed cannabis events, and effective age-gating at any over-21 event is a given, but in most places these seshes are usually not that big a deal because everyone, including cops and legal vendors, knows that they are mostly harmless affairs that coincidentally fuel a very important component of the cannabis ecosystem – the semi-pro-slash-hobbyist community – whose adult denizens devote every extra minute of their day to the noble pursuit of cannabis excellence.

But in Connecticut, a stalwart Yankee Blue state, seshes remain a big deal. It strongly suggests that the Nutmeg State can forget about consumption lounges anytime soon, at least not without a big fight.

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(Originally posted by Tom Hymes)

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