Minnesota’s newly appointed cannabis director, Erin DuPree, is facing scrutiny over her previous involvement with a hemp shop called Loonacy Cannabis Co., which she founded in July 2022. It has been revealed that Loonacy was selling products that violated state law, as evident from social media videos, online product listings (now deleted), and lab results still visible on its website.
Specifically, Loonacy advertised edible cannabis products containing 10 milligrams of THC per serving and 150 milligrams per package on its TikTok account. However, state law allows hemp-derived edibles to contain a maximum of 5 milligrams of THC per serving and 50 milligrams per package. The TikTok account was deactivated shortly after the controversy emerged. Additionally, Loonacy continued to sell noncompliant vape cartridges on its website even after Governor Tim Walz publicly named DuPree as the first director of Minnesota’s Office of Cannabis Management.
Some of these vape products contained banned cannabinoids like HHC, THC-P, and Delta-10. The governor’s office deferred questions to DuPree, who has not yet responded to requests for comment.
In a news release, Governor Walz’s office had initially praised DuPree as a leader with a track record of “maintaining compliance with state laws and regulations.” However, Leili Fatehi, a longtime legalization advocate, expressed serious concerns about DuPree’s qualifications and past disregard for compliance. Fatehi called on the governor to consider appointing a new director to avoid regulatory capture and potential noncompliance issues at the highest levels of the state’s cannabis industry oversight.
DuPree is set to assume her role as Minnesota’s cannabis director on October 2 with a salary of $151,505. In an interview, she stated her intention to close her hemp shop, Loonacy, before assuming the position, as Minnesota’s marijuana law prohibits the director from having any direct or indirect stake in a cannabis business.
Before opening Loonacy, DuPree had worked as a consultant for startup businesses for nearly 20 years. She emphasized that her role in setting up Minnesota’s new cannabis agency was akin to launching a large startup.
It’s worth noting that regulations and enforcement regarding hemp-derived THC products were relatively loose when Minnesota first legalized them, with many products existing in a legal gray area since the 2018 federal farm bill allowed cannabis compounds derived from hemp.
In response to the controversy, Loonacy’s TikTok videos and noncompliant product screenshots circulated online, prompting the removal of all social media pages and product listings from the shop’s website. The recently passed recreational marijuana law in Minnesota imposes additional penalties for noncompliant hemp-derived products, making it a gross misdemeanor with fines of up to $3,000 and potential jail time for those who knowingly sell such products.
Furthermore, it’s unclear whether many of the hemp-derived products previously sold by Loonacy will be allowed in licensed adult-use marijuana dispensaries when they are expected to open in 2025, as novel cannabinoids like THC-P remain poorly understood.
