Court Rules
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SettlementMedium Risk

Colorado smoke shop owners to pay $152,000 for selling illegal kratom products

Sahansila Karki and Gokul TiwariSeptember 14, 2026Colorado Attorney General

Penalty Amount

$152,000

Summary

Colorado Attorney General Phil Weiser announced a $152,000 settlement with smoke shop owners Sahansila Karki and Gokul Tiwari for selling kratom products that exceeded the legal potency limit and failed to meet labeling and packaging requirements. The settlement requires compliance with the Colorado Consumer Protection Act and the Daniel Bregger Act, product testing, documentation of purchases, and payment of $152,000, with an additional $500,000 due if the terms are violated.

Remedy

Karki and Tiwari agreed to fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act, test all kratom products sold in Colorado to ensure compliance with applicable laws, document all kratom product purchases from third parties with invoices and receipts, and pay $152,000 to the state. If they violate the settlement terms, they must pay an additional $500,000.

Monetary PenaltyInjunctionCompliance ProgramReporting Requirements

Contract Impact

In-house legal teams should review vendor and supplier agreements for kratom or other regulated products to ensure they include robust representations and warranties that products comply with all applicable laws, including state-specific potency limits and labeling requirements. They should also verify that contracts contain indemnification clauses protecting the company from regulatory fines and penalties, and require vendors to provide certificates of analysis or other testing documentation. Additionally, companies should include audit rights to confirm compliance and consider adding provisions that allow termination for regulatory violations.

Contract Search Terms

kratom7-hydroxymitragynineproduct labelingcompliance with lawsrepresentations and warrantiesindemnificationtesting requirementscertificate of analysisstate law complianceproduct safety

Laws Cited

Colorado Consumer Protection ActDaniel Bregger Act
SB25-072

Violation Types

Entity Details

Entity

Sahansila Karki and Gokul Tiwari

Industry

Retail

Official Sources

Source Evidence

Entity Name
"Sahansila Karki and Gokul Tiwari"
Fine Amount
"Pay $152,000 to the state."
Laws Cited
"Fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act."
Violation Types
"sold kratom products in excess of the legal potency limit"
Violation Types
"failed to ensure the kratom products adhered to labeling and packaging requirements"

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