Pueblo, Colorado-based Bee’s Knees CBDs and its owner, Joseph Leyba, have agreed to pay a $225,000 settlement following an investigation by the Colorado Attorney General’s office. The investigation revealed that the company misrepresented product sources, falsely labeled some items as “organic,” claimed unverified partnerships with nonprofit organizations, and failed to verify customers’ ages.
The penalties could increase to $495,000 if Bee’s Knees CBDs does not comply with the settlement terms. These include a structured payment plan for the $225,000 fine and a commitment to adhere to state laws.
Bee’s Knees CBDs sells industrial hemp-derived cannabinoid products, including CBD gummies, topicals, and some hemp-derived THC items. The company previously allowed customers to purchase age-restricted products online without proof of age, despite listing a 21+ age requirement on its website.
Colorado Attorney General Phil Weiser emphasized the importance of compliance in the legal cannabis industry:
“Colorado is committed to maintaining an effective system of overseeing the sale of legal cannabis products — one that keeps it out of the hands of kids, ensures safety standards, requires chain-of-custody tracking, and gives consumers important information about the products they buy. This settlement will hold them accountable for those violations of the law and will ensure compliance in the future.”
A Bee’s Knees attorney stated the company is “happy to have this issue behind us” and is committed to producing safe and compliant products. The company also expressed its intention to collaborate with local officials to uphold Colorado’s regulatory standards.
This settlement serves as a reminder of the strict oversight governing cannabis-related businesses in Colorado, with consumer safety and product transparency remaining top priorities.
