Carol Moss and Steven Forrest are pleased to announce a successful petition against the Minnesota Office of Cannabis Management (OCM) concerning an unpromulgated rule that prohibited hemp businesses from selling lower-potency hemp edibles (LPHE) directly to consumers.
In October 2025, OCM published an FAQ stating that hemp edible businesses could not sell or ship LPHE products directly to consumers. In support of its position, OCM cited the statutory prohibition against selling LPHE to visibly intoxicated individuals and the requirement to verify that consumers are over the age of 21. OCM also referenced forthcoming delivery licenses and endorsements as justification for prohibiting direct-to-consumer sales. The agency further asserted that if Chapter 342 does not expressly authorize an activity, that activity is prohibited.
Industry-leading Minnesota hemp businesses filed a petition with the Minnesota Court of Administrative Hearings, arguing that the FAQ represented a change in position from a practice that has been in place since 2022 and constituted an unpromulgated rule. The Court agreed and prohibited OCM from enforcing the policy.
The Court also rejected OCM’s broad interpretation of Chapter 342. It found that the statute does not contain a catch-all provision prohibiting activities unless expressly authorized by licensure or endorsement, nor was there evidence that the legislature intended such sweeping restrictions.
This decision represents a significant victory for Minnesota consumers, many of whom rely on direct purchases from hemp businesses to access these products. It also provides important guidance to both a newly established regulatory agency and a developing industry as they move forward within a regulated framework.