The UK Government is under fire once again as two CBD businesses, Ocean Development (Dorset) Ltd. and CBD Flower Shop Ltd., have launched a £3.4 million lawsuit against the Home Office. The case highlights the ongoing challenges faced by the hemp and CBD industries due to unclear and restrictive regulations.
A Pattern of Unlawful Seizures
The lawsuit, filed in the High Court under case number KB-2024-002634, accuses the Home Office and Border Force of unlawfully seizing 10 shipments of legally CBD Flower between August 2023 and May 2024. Both businesses, owned by Shirley Anne Elizabeth Wood and her son Joshua Wood, hold valid licences from DEFRA to import hemp for tea production. Despite this, the shipments were classified as controlled drugs, violating the businesses’ rights to peaceful enjoyment of possessions.
The claimants argue that the seizure process disproportionately impacts legal businesses, as hemp’s legality is only confirmed after lengthy investigations. This delays access to products, often rendering them unsellable due to expiration. Such practices not only jeopardise the financial viability of companies but also create unnecessary roadblocks for an industry that adheres to regulatory requirements.
Legal hemp businesses are held to stringent compliance standards, making the repeated misclassification of their products both frustrating and costly. Border Force’s actions undermine confidence in the system, highlighting the pressing need for a more transparent and efficient process for determining the legality of shipments.
Seeking Justice
Ocean Development and CBD Flower Shop are demanding £3.4 million in damages. This figure includes over £3.1 million for reputational harm to CBD Flower Shop, as well as financial losses due to the seized hemp and goodwill damage to Ocean Development. The financial toll of these seizures extends beyond immediate losses, as businesses must also address damage to their brand and customer trust.
Their legal representation includes Josh Normanton of Trinity Chambers and Robert Jappie of Fieldfisher LLP, who successfully represented Jersey Hemp in a similar landmark case last year. This team’s expertise in navigating the complex regulatory landscape provides hope for a fair resolution, though the lack of systemic reform continues to pose risks to the industry.
In addition to financial reparations, the lawsuit seeks to shine a light on the systemic issues within the regulatory framework. By holding the government accountable, the claimants aim to drive changes that prevent similar incidents from happening in the future. However, without clear legal precedents, the road to reform remains uncertain.
Jersey Hemp’s Battle for Clarity
Jersey Hemp’s legal victory against the UK Home Office in 2023 was a significant milestone for the CBD industry. The High Court ruled that the government’s ban on Jersey Hemp’s CBD imports was unlawful. The case revolved around the “Exempt Product Criteria” under the Misuse of Drugs Regulations 2001, which allows products with trace THC amounts to be legally imported if certain conditions are met.
Jersey Hemp’s products complied with these criteria, yet were misclassified as controlled substances. The Home Office’s concession acknowledged this error but failed to produce a written judgement, leaving the industry in legal limbo. This lack of clarity continues to create obstacles for businesses operating within the law, further emphasising the need for comprehensive reform.
The absence of a written decision has broader implications for the industry. While Jersey Hemp’s victory was significant, it failed to establish a precedent that could protect other businesses from similar challenges. This legal ambiguity leaves companies vulnerable, forcing them to navigate an unpredictable regulatory environment.
Despite its legal win, Jersey Hemp suffered immensely. The company lost 95% of its revenue after its licence was revoked, forcing it to let go of staff and sell equipment at a loss. Craig Dempster, Jersey Hemp’s commercial director, described the aftermath as “pretty awful,” with the business effectively dismantled. Although Jersey Hemp can now legally import its products, rebuilding from the ground up remains unlikely without significant compensation.
Increasing Seizures Across the Industry
This latest legal challenge comes amid a rise in hemp and CBD seizures. Reports indicate that UK Border Force is detaining shipments over minor infractions, such as labelling errors. These products are often held for months before being released, by which time they are expired and unusable. Such practices not only harm individual businesses but also discourage investment in the UK’s hemp and CBD sector.
The situation is compounded by record-breaking drug seizures in 2024. The UK Border Force confiscated over 119 tonnes of illegal substances in the year ending March 2024, including 74 tonnes of herbal cannabis. While these figures highlight law enforcement’s crackdown on illicit drugs, they also reveal the challenges faced by legal CBD businesses operating in a heavily regulated environment. Distinguishing between illegal cannabis and legal hemp requires a more nuanced approach to prevent unjustified disruptions.
The rise in seizures reflects a growing trend of misclassification that disproportionately affects compliant businesses. Addressing these issues is critical to ensuring that legitimate operators are not penalised for adhering to the law. The current system’s inefficiencies highlight the urgent need for reforms that promote clarity and fairness.
"After months of legal action in the UK court, the Home Office has finally admitted that it acted unlawfully in relation to Jersey Hemp." https://t.co/B7VQC7XteD
— End Cannabis Prohibition Jersey (@ecpj_campaign) March 13, 2024
Why Legal CBD Flower Shouldn’t Be an Issue
CBD flower, derived from hemp, is a legal product under UK law when it meets strict regulatory criteria. Unlike cannabis, which contains psychoactive levels of THC, CBD flower is non-intoxicating and used primarily for wellness purposes. Its legal status reflects its low risk, yet businesses continue to face significant hurdles in importing and selling it.
The ongoing misclassification of CBD flower undermines the government’s commitment to supporting lawful industries. By treating legal products as controlled substances, authorities not only disrupt supply chains but also erode public trust in the regulatory process. Clear guidelines and streamlined procedures are essential to distinguish legal CBD products from illicit substances.
Reforming the current framework would benefit all stakeholders, from businesses to consumers. A transparent and efficient system would enable legal operators to thrive while allowing enforcement efforts to focus on genuinely illegal activities. This shift is critical for the industry’s growth and the government’s credibility.
What’s Next for the UK CBD Industry?
The outcome of Ocean Development and CBD Flower Shop’s lawsuit could have far-reaching implications. A ruling in their favour might pressure the government to clarify regulations, potentially preventing further unlawful seizures. However, without a written precedent, the industry’s legal ambiguity remains a persistent barrier.
The case also highlights the broader need for reform in the UK’s approach to hemp and CBD regulation. Clear and consistent policies would provide businesses with the certainty they need to invest and grow. For consumers, these changes would ensure access to safe and high-quality products without unnecessary delays or disruptions.
For now, the UK’s CBD businesses continue to navigate an uncertain landscape, fighting for their right to operate within the confines of the law.