TABC Investigates 650 Unlicensed Hemp Retailers Across Tennessee

 NASHVILLE, TN – Tennessee Alcoholic Beverage Commission (TABC) law enforcement agents have uncovered more than 650 illegal hemp-derived cannabinoid product (HDCP) retailers across Tennessee. HDCPs can be sold legally in Tennessee with a license. These products are legally distinct from marijuana but contain lower levels of the same chemical compounds that marijuana contains, including the psychoactive compound Δ9-THC. 

Since 2023, state law has required those selling HDCPs to be properly licensed, pay appropriate taxes, and ensure products have been tested for safety. The extensive number of violations has the commission's leadership concerned for public health and safety. 

TABC began regulating the HDCP industry following the passage of PC 526 (2025). The new law required the TABC to begin regulating HDCPs on January 1, 2026. Since then, the TABC provided an online application portal for HDCP suppliers, wholesalers, and retailers to comply with state licensing requirements. Despite these efforts, agents have canvassed over 4400 businesses, finding approximately 650 selling HDCPs without a license. 

State law requires products being marketed and sold as HDCPs to be tested for levels of the psychoactive compound Δ9-THC. Per state law, HDCPs may not contain concentrations of total THC that exceed 0.3% THC on a dry weight basis. Additionally, testing is required to determine whether these products contain compliant concentrations of heavy metals, pesticides, residual solvents, microbials, and other harmful chemicals, as required by state regulations. 

In addition to serious health implications related to incomplete product testing, state regulators are concerned that unlicensed operators may be selling untaxed products that contain concentrations of total THC that far exceed legal levels. “Tennessee consumers should feel confident when they walk into a licensed business. Licensed retailers are required to purchase products from other licensed and regulated businesses, and those products must undergo comprehensive testing for total THC concentrations, heavy metals, pesticides, and other harmful contaminants. When someone buys from an unlicensed operator, there is no guarantee where that product came from or what is in it. We will not allow bad actors to put public health at risk or undermine businesses that are following the law,” said TABC director Russell Thomas. 

The TABC will focus law enforcement efforts on identifying and penalizing unlicensed operators, with an emphasis on ensuring products comply with state law. Selling HDCPs without a license is a class A misdemeanor, which typically carries a sentence of up to 11 months and 29 days in jail and/or fines up to $2,500. Thomas went on further to say, “There is no excuse for operating without a license. Licensure has been required for more than two years, and we have provided clear guidance and an accessible online application process. Any business that wants to sell these products legally can visit our website and find step-by-step instructions on how to comply. We expect businesses to follow the law, and we will hold accountable those who choose not to.” 

For more information about the Tennessee Alcoholic Beverage Commission, please visit www.tn.gov/abc. 

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