The landscape of cannabis retail in Washington D.C. is undergoing significant upheaval as legal operators intensify their efforts against unlicensed “gifting” dispensaries. In a notable escalation, Gifted Curators, a well-known weed DC dispensary operating under the gifting model, has been specifically named in a recent lawsuit. This legal action is part of a broader campaign by The Alliance of Legal Cannabis Entities-DC (ALCE) targeting over 170 unlicensed dispensaries and their landlords across the city.
This lawsuit, the seventh in a series filed in federal court, marks a critical juncture in the ongoing debate over cannabis legality in the District. ALCE, representing licensed medical dispensaries like Cannabliss, Holistic Wellness Group LLC, and Herbal Alternatives, seeks substantial compensation – nearly $12 million – from these gifting dispensaries. The core allegation is that these businesses are engaging in unfair competition and false advertising by operating without the necessary licenses, thus diverting profits from legal establishments.
The legal basis for these suits is the Lanham Act, typically used in trademark disputes, now being applied to the cannabis industry context. ALCE argues that unlicensed dispensaries mislead consumers into believing their operations are legal, thereby “siphoning” off profits from legitimate businesses. The inclusion of landlords in the lawsuit further amplifies the pressure, aiming to disrupt the operational ecosystem of these illicit cannabis vendors.
Gifted Curators, specifically mentioned in court documents, is accused of generating nearly $2 million in revenue over three years, with profits nearing $500,000. The lawsuit further claims the dispensary’s landlord profited almost $200,000 during the lease period. These figures underscore the significant financial stakes involved and the potential impact on both dispensary operators and property owners.
Adding to Gifted Curators’ challenges, the lawsuit highlights prior enforcement actions by the Alcoholic Beverage and Cannabis Administration (ABCA). It alleges that Gifted Curators continued selling cannabis even after receiving a cease and desist order from ABCA, only entering a consent agreement later. This detail paints a picture of persistent operation despite regulatory warnings, further strengthening ALCE’s case.
The implications of this lawsuit extend beyond Gifted Curators. The extensive list of defendants reveals the wide reach of ALCE’s legal strategy. Other dispensaries named in recent filings, alongside their alleged profits, include:
- Gifted Adams Morgan Dispensary – $484,492
- Grass Adams Morgan Dispensary – $222,007
- For Heady Adams Morgan Dispensary – $356,557
- Basement Adams Morgan Dispensary – $375,000
- Capsterdam Adams Morgan Dispensary – $359,987
- Capital Adams Morgan Dispensary – $180,000
- AK Columbia Height Dispensary – $531,024
- Lit Columbia Heights Dispensary – $445,500
- Safe H Street Dispensary – $446,250
- Karma Petworth Dispensary – $318,750
- Buzz Park View Dispensary – $321,750
- MASC U Street Dispensary – $306,551
- Flight U Street Dispensary – $302,062
- Green U Street Dispensary – $499,537
- Nomad H Street Dispensary – $361,728
- Nomad Anacostia Dispensary – $180,036
- Guys DuPont Circle Dispensary – $238,333
- Guys Logan Circle Dispensary – $817,800
- Guys U Street Dispensary – $301,455
- Guys Capitol Hill Dispensary – $432,877
- AA Truxton Circle Dispensary – $443,065
- AA Adams Morgan Dispensary – $98,500
- AA H Street Dispensary – $483,720
- AA U Street Dispensary – $240,622
- Mother Capitol Hill Dispensary – $542,510
- Giving H Street Dispensary – $594,000
- Flowerz Capitol Hill Dispensary – $405,000
- NKA Capitol Hill Dispensary – $592,500
- Euphoria Capitol Hill Dispensary – $270,000
- Bud Capitol Hill Dispensary – $157,500
- Friends Capitol Hill Dispensary – $494,970
- Puff DuPont Circle Dispensary – $157,500
While the Lanham Act’s applicability in this context is untested, these lawsuits pose a significant challenge to the named businesses. For Gifted Curators and other gifting dispensaries in DC, the legal pressure is mounting. The outcome of these cases could redefine the cannabis market in Washington D.C., potentially paving the way for a more regulated and legally compliant industry, or triggering protracted legal battles. As the legal proceedings unfold, the future of weed DC dispensaries, particularly those operating under the gifting model like Gifted Curators, remains uncertain.
