Cookies Settles with New Mexico Cannabis Control Division

Albuquerque, NM - Blue Whale Enterprises Inc. has reached a settlement with the New Mexico Cannabis Control Division (CCD) following multiple violations during their Grand Opening event. The settlement comes after allegations that the company allowed a minor to consume cannabis, promoted overconsumption on social media, permitted public cannabis consumption without a license, enabled alcohol consumption without a liquor license, and improperly displayed cannabis products outside the retail area.

To resolve these issues, Blue Whale Enterprises Inc. agreed to a series of fines and conditions. The company will pay a $50,000 fine for the five violations and an additional $300,000 in lieu of a 14-day suspension of their cannabis business activities, payable in five installments. They also face potential fines and suspension for any repeat violations within the next two years.

This agreement, which became effective upon signing by both parties, allows Blue Whale Enterprises Inc. to avoid a formal hearing and additional disciplinary actions. The CCD will consider the matter closed once all conditions are met, though any future violations could lead to enhanced penalties. The settlement underscores the importance of compliance with regulatory standards in the cannabis industry.

Alleged Violations:

  1. Protection of Underage Persons: A minor without a valid qualified patient card was present and consumed cannabis at the event.

  2. Engaging in Prohibited Practices: Promotion of overconsumption of cannabis on social media.

  3. Unauthorized Consumption of Cannabis: Allowed public consumption without a cannabis consumption license.

  4. Unlawful Co-Mingling of Alcoholic Beverages and Cannabis: Allowed public consumption of alcohol without a liquor license.

  5. Violation of Cannabis Product Display Requirements: Displayed cannabis products outside the retail area in the parking lot.

Evidence Against Respondent:

  • Photographs, inspection checklists, testimonies, a news article, social media posts, and depositions.

Settlement Agreement:

  • Blue Whale Enterprises Inc. acknowledges the Division’s authority and agrees to resolve the matter without a formal hearing.

  • The agreement requires Division approval and includes a series of fines and conditions:

    • A $50,000 fine for the five violations.

    • A $300,000 fee in lieu of a 14-day suspension, payable in five installments.

    • Potential 14-day suspension for future violations within two years.

    • Automatic fines for repeat violations: $100,000 for allowing underage consumption or overconsumption, $50,000 for other violations.

  • The agreement is binding upon signing by both parties and closes the matter unless further violations occur.

  • Any non-compliance with the agreement may result in additional disciplinary actions.

This agreement settles the specific allegations and does not set a precedent for other cases. Blue Whale Enterprises Inc. agrees to comply with all terms and conditions, understanding the consequences of any violations. The agreement becomes effective upon approval by the Division Director.

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