News Summary
Cornbread Hemp, a Kentucky-based hemp company, has filed a lawsuit against the Tennessee Alcoholic Beverage Commission over regulatory changes that impact interstate sales of hemp products. The firm claims these rules, effective January 2026, disadvantage out-of-state businesses and threaten their online operations. The lawsuit argues that the regulations violate First Amendment rights and are not suited for the hemp industry. With potential ramifications for the business and local farmers, the case highlights concerns over interstate commerce regulations.
Kentucky – Cornbread Hemp, a Kentucky-based hemp company, has launched a federal lawsuit against officials from the Tennessee Alcoholic Beverage Commission (ABC), challenging new regulations that are set to impact interstate sales and advertising for hemp products. The lawsuit argues that these rules, which will take effect on January 1, 2026, unfairly disadvantage out-of-state businesses by imposing strict limitations on their operations.
The firm, which serves approximately 11,000 customers in Tennessee and reported nearly $1 million in revenue last year, primarily sells a range of hemp-derived products, including gummies, oils, and drinks, through its online platform. The company employs age and identity verification software to ensure compliance with legal requirements for sales.
Under the newly instituted regulations, all hemp-derived products must be sold exclusively through licensed wholesalers, distributors, or retailers operating within Tennessee. This shift means that Cornbread Hemp’s online sales and shipment capabilities would be rendered illegal, creating significant financial strain due to the additional costs associated with obtaining new permits.
Moreover, the lawsuit contends that the regulations infringe upon the company’s First Amendment rights by prohibiting the use of customer reviews that reference the effects of their products. Legal representatives for Cornbread Hemp assert that the regulatory structure is an outdated three-tier system originally designed for alcohol sales after Prohibition, which is ill-suited for the hemp industry.
Jim Higdon, co-founder of Cornbread Hemp, expressed concerns that the new regulations favor in-state businesses and undermine the principles of interstate commerce that are supposed to facilitate free trade across state lines. Many of their customers in Tennessee reside in rural areas, with about 60% being over the age of 65, and sleep gummies identified as the company’s most popular product.
If the lawsuit fails to prevent the law from being enacted, Cornbread Hemp may be forced to discontinue service for its Tennessee market, following a precedent set in Alabama with similar legislative actions. Other local business owners have voiced expectations of additional legal challenges against these new regulations, indicating a potential wave of opposition from the industry.
The lawsuit cites that the U.S. Constitution’s Interstate Commerce Clause protects businesses from undue burdens imposed by state governments on interstate trade. Following the new guidelines, the oversight of hemp products will transition from the Department of Agriculture to the ABC, marking a significant regulatory shift in the industry.
The regulations were established under House Bill 1376, which imposes severe restrictions on health-related claims made in the marketing and labeling of hemp products. As the law nears its effective date, the implications for businesses like Cornbread Hemp and the broader hemp industry in Tennessee remain a focal point of legal and commercial concern.
Deeper Dive: News & Info About This Topic
- Tennessean
- WLKY
- Ganjapreneur
- Law360
- WKRN
- Wikipedia: Hemp
- Encyclopedia Britannica: Hemp
- Google Search: Hemp regulations Tennessee
Author: STAFF HERE BRISTOL WRITTER
The BRISTOL STAFF WRITER represents the experienced team at HEREBristol.com, your go-to source for actionable local news and information in Bristol, Sullivan County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Bristol Rhythm & Roots Reunion, NASCAR races at Bristol Motor Speedway, Border Bash concert series, and the Hot Bristol Night Car Show. Our coverage extends to key organizations like the Bristol Chamber of Commerce, Believe in Bristol, and the Birthplace of Country Music, plus leading businesses in healthcare, manufacturing, and entertainment that power the local economy such as Ballad Health, Strongwell, and Bristol Motor Speedway. As part of the broader HERE network, including HEREChattanooga.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
