Virginia retailers fined $10M for selling illegal hemp products

More than 300 businesses across Virginia were collectively levied nearly $10.8 million in fines for illegally selling hemp-derived products the state banned last year.

Why it matters: The vast majority of Virginia retailers inspected for hemp products — 82% — were in violation of state law, according to Virginians for Cannabis Safety , which shared a compilation of the year-one stats with Axios.

The big picture: A law that went in effect July 1, 2023 closed a loophole in state hemp regulations that allowed for years the public sale of intoxicating THC products like Delta-8.

• Since then, the amount of THC that hemp-derived products can contain has been regulated, businesses that sell hemp products are required to register with the state, and edible hemp products — especially ones that resemble candy — must be lab tested and have clear labeling.
• The law was largely aimed at Delta-8 and passed amid an increase in the numbers of children ending up in Virginia emergency rooms due to cannabis exposure .

By the numbers: Between July 1, 2023 and June 30, Virginia Department of Agriculture and Consumer Services' hemp enforcement , the agency tasked with enforcement, found:

• 346 out of 424 business inspected were in violation.
• 17,715 total violations were found among those businesses.
• $10,772,250 in civil penalties were assessed.
• $433,262 in penalties have been collected.

Worth noting: Businesses can pay a significantly reduced penalty if they correct the violations and pay the fines quickly.

• Smoker's World at 8125 Staples Mill Road, for example, had the option of paying $10,000 to settle a $74,250 fine last year, a spokesperson for Virginians for Cannabis Safety tells Axios.
• The fines were for edible hemp products containing too much THC or in incorrect packaging; the store owner ultimately appealed the fine, removed the products and settled it for $7,500, BizSense reported last year .

What we're watching: If enforcement helps curbs the sale of illegal hemp products.

• Early stats for the new state fiscal year, which began July 1, indicate they could be helping. Of the 66 businesses inspected thus-far in July, 43 were found to be in violation, or 65%.