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SettlementHigh Risk

Connecticut Settlement with RZ Smoke Over Illegal Cannabis Distribution

RZ Smoke, Inc.October 9, 2026Connecticut Attorney General

Penalty Amount

$2,000,000

Summary

Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.

Remedy

The stipulated judgment is $2 million, including $375,000 to be paid to the State and $1.6 million suspended to ensure compliance with Connecticut law. The defendants are prohibited from manufacturing, packaging, selling, offering for sale, distributing, or storing intoxicating THC products in Connecticut unless licensed by the Department of Consumer Protection.

Monetary PenaltyInjunction

Contract Impact

Review vendor, distributor, and customer agreements for clear representations that suppliers hold all required licenses and that products meet applicable testing, packaging, labeling, and sales-channel requirements. Add covenants restricting distribution or storage of regulated products to authorized channels, audit and documentation rights to verify licensing and compliance, prompt notice of regulatory investigations or license changes, and indemnification and termination rights for unlawful products or unlicensed activity. This action does not describe a privacy violation, so it does not specifically indicate a need to revise data-processing, privacy-notice, or breach-notification clauses.

Contract Search Terms

supplier licensing representationsregulatory compliance warrantyproduct testing requirementsproduct packaging standardsauthorized distribution channelsprohibited product restrictionssupplier audit rightsregulatory change and termination rights

Laws Cited

Connecticut Unfair Trade Practices Act (CUPTA)

Violation Types

Entity Details

Entity

RZ Smoke, Inc.

Industry

Other

Official Sources

Source Evidence

Entity Name
"with RZ Smoke, Inc., over allegations that the company illegally distributed and sold high potency cannabis products"
Fine Amount
"The Defendants have agreed to a stipulated judgement of $2 million"
Laws Cited
"for violating Connecticut’s Unfair Trade Practices Act (CUPTA)"
Violation Types
"illegally distributed and sold high potency cannabis products to smokes shops, gas stations, and convenience stores across Connecticut without a license from the Connecticut Department of Consumer Protection (DCP)"
Remedy Summary
"The Defendants are prohibited from manufacturing, packaging, selling, offering for sale, distributing, and storing intoxicating THC products in Connecticut unless licensed by DCP to do so."

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