A group of hemp companies say new regulations could put them out of business. Senate Bill 494 bans the sale of certain hemp products in stores and mandates licensing along with product testing. But business owners claim the restrictions are too severe.
Scott Ellison runs the e-commerce site THC Atlanta. Ellison planned to open a brick-and-mortar store after a federal law permitting the production and sale of certain hemp products took effect in 2018. State law stopped those plans.
Georgia SB 494 went into effect last October. The state law limits the sale of hemp products to customers over 21. It bans products like smokeable hemp flower and many foods infused with THC. The law also mandates THC warning labels and new licensing requirements for hemp businesses.
"The plans fell out as soon as the law passed back in 2024 of October," Ellison said.
"It puts a strain on the industry as a whole," said Ellison, who is part of a group of hemp businesses that filed a lawsuit against the state. They claim the legislation is hurting them. "Sales are down probably about 60 to 75% at the moment," Ellison said. "It's putting several shops around the area out of business."
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