Dave Ryan and Blair Jones, co-founders of Jersey Hemp. Image: JON GUEGAN. (36605664)
JERSEY Hemp has won the first leg of its legal battle with the UK and Jersey governments over a Home Office ruling that forced the company to close and could lead to a ban on all CBD products in the UK united
The case has sent shockwaves through Britain’s £690m cannabidiol industry, which has launched an urgent ‘Save Our CBD’ campaign.
A judge at the High Court in London has granted the company leave to seek a judicial review of the decision. He has previously said he is considering suing the UK and island governments in what is expected to be multi-million pound legal action.
Jersey Hemp went to court after Whitehall officials ruled that its CBD products were illegal, preventing it from exporting them to the UK.
He has now been granted judicial review in the UK High Court of Justice, allowing him to challenge the decision.
Home Office lawyers did not challenge two of the three grounds put forward by Jersey Hemp, but did argue against the company’s claim for damages from Warwick Farm. The judge found Jersey Hemp’s three grounds for judicial review to be “arguable.”
The Jersey Government was listed as an “interested party” in the proceedings and, contrary to the Home Office’s position, argued that Jersey Hemp should be refused permission to apply for a review. The judge rejected his arguments.
The Cannabinoid Industry Association is calling on the Home Office to establish a clear legal framework for CBD products as part of the Save Our CBD campaign.
Jersey Hemp director Craig Dempster said the company said its product was banned because it contained THC, the main psychoactive ingredient in cannabis, even though the level had been shown to be within legal parameters.
“We challenged this decision at the time, we challenged it previously and we are now challenging it through a judicial review.
‘We have had a response from the courts and it is very clear that the courts have decided that we have a case to answer’, he explained.
However, he noted that if the Home Office were to win, the ruling would “immediately define CBD as a controlled substance”.
He warned that this outcome would “kill” the UK’s CBD industry, which is estimated to have generated around £690m in sales by 2021.
‘If this problem breaks out, the whole card [payment processing] suppliers will withdraw. Secondly, Boots chemist, which is probably one of the biggest retailers of CBD oil, will stop stocking products that have had a clear indication that they are a controlled substance. So the shelves will be cleared and returned to the suppliers, this will spread and suddenly there will be no industry,” he said.
The statement on the Save our CBD website states that: “We understand the complexities that the Home Office has to navigate in terms of compliance with the Misuse of Drugs Act. However, we strongly maintain that businesses are “have behaved in a socially responsible manner during this period. We therefore strongly believe that there is no valid reason why the Home Office cannot provide the much-needed legal clarity that the industry is urgently seeking.”
“We invite the Ministry of the Interior to address this matter urgently.”
It also states that “recent actions taken by the Home Office against an established CBD company have highlighted the vulnerability of all companies operating in this sector”.
Dempster said the campaign was a “direct consequence of what has happened with Jersey Hemp.”
“They recognize the threat to the industry,” he added.
Dempster has previously said the company is also likely to seek “multimillions” in damages.