Better Business Bureau Issues Warning About Fraudulent Cannabis Sites

According to the Better Business Bureau (BBB), a rising number of cannabis consumers are being swindled by fraudulent delivery services and false advertising claims. Those who are unaware of local laws and who are new to the cannabis industry are at the highest risk for scams.

The BBB issued a warning after receiving a tip through its handy ScamTracker tool. The tip alleged that two web-based businesses, Denver Marijuana and Denver Smoke Buds, may be trying to capitalize on the recreational industry. When the BBB fact-checked addresses listed for Denver Marijuana, the physical address on South Colorado Blvd first turned out to be a wine store with no association to the business, and the address was changed to another location that doesn’t exist, according to the Denver Property Taxation and Assessment system.

Denver Smoke Buds is another story. The business fraudulently claims to have won the “best of” awards from Colorado Springs Independent in 2013, 2014 and 2015 and the Colorado Springs Gazette in 2015. The Colorado Springs Gazette doesn’t even publish any sort of dispensary awards. The site lists no physical address, and the business has no Secretary of State listing in Colorado. Denver Smoke Buds also offers a sketchy service to renew a medical cannabis cards.

“One huge red flag for us is when there is no link to registration with the Colorado Secretary of State,” Krista Ferndelli, director of marketing and communications for the BBB of Denver, told Westword. “Both of these places show no owner, no managing staff, and have some sketchy information about where they are based. Whenever we called them, they would deliberately hang up. They also list themselves as winners of fake awards on their website.” Raising more flags is the fact that some of these so-called cannabis retailers link out sites that sell “bath salts” and various research chemicals that are dangerous and illegal.

It would do well for any patient or consumer to verify that online companies are indeed legitimate businesses, especially for cannabis-related businesses. In this case, the BBB is protecting consumers who are looking for legitimate places to purchase cannabis products.