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Cura Partners To Pay Record Fine For Mislabeling Vaping Products

Marijuana company Cura Partners will pay a record penalty of $110,000 to settle allegations by Oregon state regulators that it mislabeled its Select brand vaping products.

The Oregon Liquor Control Commission or OLCC said that Cura Partners mislabeled about 186,152 units of cannabinoid products, including the company's Select brand vape products.

The cannabinoid products include Select Elite, Select PAC and Select Dabbables product lines, including cartridges, disposable pens and pods. The labels or package ingredient lists of these products omitted an added substance.

According to the settlement, the labels on the packages of these marijuana items failed to list botanically derived terpenes and medium-chain triglyceride or MCT oil as their ingredients.

The OLCC investigation into Cura's violations came after the October 2019 ban on flavored cannabinoid vapor products. Inspection of the labels on Cura's cannabis products revealed the misrepresentation.

Botanical terpenes violated the state ban on flavored THC vapes. The labels incorrectly listed cannabis-derived terpenes as an ingredient, which would be classified as unflavored products not subject to the ban.

Each transfer and sale of an individual marijuana item that filed to list an added substance on the ingredient list is a violation, the OLCC said.

Cura also allegedly misrepresented the contents of its Select Elite line of marijuana products. The company marketed its vaping products as 100 percent derived from cannabis, when in fact they contained botanically derived terpenes and MCT oil as an added substance.

These misrepresentations are separate from the labeling violations and constitute a "dishonest conduct" violation, the OLCC noted.

The settlement includes a $100,000 penalty for misleading labeling and a $10,000 "dishonest conduct" penalty.

The settlement now clears the way for Cura's long-delayed sale to Massachusetts-based cannabis company Curaleaf Holdings. In May 2019, Curaleaf agreed to acquire Cura Partners, owner of the Select Brand, for $948.8 million in stock.

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