The Prairie State recently found itself at the center of a national cannabis industry story when the United States District Court for the Northern District of Illinois permanently enjoined HBI International (the distributor of rolling paper brands RAW®, Elements®, Juicy Jays®, Pay-Pay®, and Skunk®) from making certain claims about its products and ordered HBI to immediately cease manufacturing, ordering, or replenishing its inventory with goods that fail to conform to the Court’s order.

Republic Brands, a leading distributor of rolling papers and smoking accessories, recently released a press announcement after it obtained a permanent injunction in a federal lawsuit against HBI that requires HBI to cease making claims about its RAW® Organic Hemp rolling papers. The injunction order follows a jury’s verdict that HBI engaged in unfair competition and violated the Illinois Uniform Deceptive Trade Practices Act through its packaging and promotional activities.

The Court enjoined HBI from continuing to state, imply, or suggest that it operates or contributes funds or sales proceeds to a charitable entity or foundation referred to as the RAW Foundation or making reference to the RAW Foundation in text or images because in its December 6, 2022 ruling, the Court found that no such foundation even existed despite HBI’s prior promotional claims.

Additionally, HBI for more than a decade has marketed its papers as having been made by artisanal craftsman in Alcoy, Spain and referring to Alcoy as the “birthplace of rolling papers.” HBI claimed that its RAW® papers receive the “Spanish Alcoy Paper Blessing” and affixed an “Alcoy stamp” to some of its products. However, in a January 19, 2023 ruling, the Court found that “HBI makes no rolling paper in Alcoy, Spain whatsoever.” In its permanent injunction order, the Court enjoined HBI from stating or implying that its RAW® Organic Hemp booklets or cones are made in Alcoy and further ordered that “HBI shall not use on its packaging a ‘stamp’ including the use of the word Alcoy or referring to Alcoy.”

In its January 31, 2023 permanent injunction, the Court ordered HBI to cease promoting, selling, distributing, shipping, or delivering products that contain the statements after March 2, 2023 for RAW® Organic Hemp. In addition, after May 31, 2023, HBI may not promote, sell, distribute, ship or deliver products under its other brands (e.g., Elements®, DLX®, Skunk®, Pay-Pay®, and Juicy Jays®) sold in packaging including an Alcoy stamp.

The order permanently prohibits HBI and its personnel from making any statement or communication, or engaging in any promotion or advertising activity that states, implies, or suggests:

• That HBI and/or RAW operate(s) or contributes its funds or sales proceeds to a charitable entity or foundation of any kind referred to as the “RAW Foundation” or making reference to the “RAW Foundation” in text or images;
• That RAW Organic Hemp rolling papers are “unrefined;”
• That RAW Organic Hemp rolling papers are made with natural hemp gum, or that the adhesive used in RAW Organic Hemp rolling papers is made from or contains hemp;
• That RAW Organic Hemp rolling papers are, or ever were, the world’s first or world’s only organic (or organic hemp) rolling papers;
• That RAW Organic Hemp rolling paper booklets are made in Alcoy, Spain;
• That RAW Organic Hemp pre-rolled rolling-paper cones are made in Alcoy, Spain;
• That the bulk paper (“bobbins”) used to make RAW Organic Hemp rolling paper products is made in Spain;
• That RAW Organic Hemp rolling papers are made in Alcoy Spain, the birthplace of rolling papers; and
• HBI shall not use on its packaging a “stamp” including the use of the word Alcoy or referring to Alcoy.
• That RAW Organic Hemp rolling papers are made using wind power or are powered by wind;
• That HBI uses or used the center of the hemp stalk for its RAW Organic Hemp rolling papers;
• That HBI or Joshua Kesselman invented rolling paper pre-rolled cones;
• That the OCB Organic Hemp papers are knock-offs, “RAWnabees”, copies, or fake versions of RAW.

For more Illinois cannabis industry news, visit here.

To learn about cannabis-friendly events in Illinois, visit here.

For Illinois News Joint reviews, visit here.

To qualify and receive a medical patient card at a discounted rate, visit here.