Alerts6.26.25
New Jersey Court Allows Product Liability Claims Against Cannabis Retailers
Highlights
- Dispensaries and retailers may face potential liability under the New Jersey Product Liability Act (NJPLA) for alleged design defects or failure to warn.
- Hypothetical and speculative future losses are not sufficient to allege an ascertainable loss under the New Jersey Consumer Fraud Act (NJCFA).
- New Jersey’s innocent seller statute provides a strong defense, if its requirements are followed.
In the Monmouth County (N.J.) Superior Court, a judge denied a motion to dismiss product liability claims brought by a track and field athlete who alleged that consumption of high-potency, THC-based products led the plaintiff to experience psychotic episodes and attempt suicide. The plaintiff claimed that the retailers “knew or should have known” the risks and failed to adequately warn consumers.
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