Hundreds of unregulated smoke shops selling hemp products in the Philadelphia suburbs are using fraudulent lab reports that leave customers “dangerously uninformed” about the potency of the drugs they’re taking, according to a Montgomery County grand jury report released Thursday.

The 10-month investigation, led by the district attorneys of Montgomery, Bucks, and Chester counties, examined a patchwork of businesses launched in recent years to take advantage of federal laws allowing hemp products to be sold legally with low levels of THC, the psychoactive ingredient in cannabis.

Montgomery County District Attorney Kevin Steele called an “unintended consequence” of the 2018 Farm Bill the proliferation of unregulated smoke shops selling a wide range of products that claim to meet legal standards but are actually much stronger than advertised.

“What we found in a lot of them is they’re selling straight-up marijuana,” Steele said at a news conference Thursday.

Narcotics detectives from all three counties went undercover to purchase products from smoke shops and have them lab-tested for potency. The grand jury found that more than 90% of the edibles, THC vapes, and loose flower products analyzed exceeded federal standards. Many were mislabeled or backed by dubious certificates from suppliers.

“This deception means that adults and children alike are exposed to substances whose potency and risks are hidden from view,” the report states.

Steele highlighted the most troubling facet of the smoke shop industry: products often marketed toward children and sold to anyone who walks through the door. Some shops also carry other intoxicating substances, including kratom and tianeptine, which have been linked to hospitalizations and substance abuse issues.

The grand jury report details nine incidents in the past year where children were sickened after ingesting THC products commonly sold at these shops.

“They’re selling illegal products without oversight, and without concern for the health of Pennsylvanians, especially without regard for the health of our children,” Steele said.

The 107-page report calls on state lawmakers to impose standards for product safety and require testing at accredited labs. It also urges the establishment of a minimum age limit of 21 for THC products and regulation of THC marketing with the same rigor as tobacco and nicotine products.

Additionally, the report recommends lawmakers create clear definitions of marijuana derivatives—such as Delta-8, Delta-10, and THCA—to prevent them from being sold under the banner of “legal hemp.”

Steele noted that Montgomery County’s 240 smoke shops now outnumber schools and have turned vague federal hemp laws into a lucrative business.

“People are hiding behind that, saying this is Farm Bill compliant,” he said.

Joining Steele at the news conference were Bucks County District Attorney Jennifer Schorn and Chester County District Attorney Chris de Barrena-Sarobe, who described the deceptive practices of smoke shops as “flagrant” and “unsustainable.”

In Chester County, De Barrena-Sarobe has already issued 16 search warrants at smoke shops, arrested some lawbreakers, and seized more than half a million dollars in cash and other proceeds. Steele’s office has taken similar actions when illegal activities are discovered.

“People that are selling drugs out of their stores—selling marijuana—that’s a felony,” Steele said. “If you continue on in this way, plan on getting arrested.”

The grand jury report comes amid Pennsylvania’s ongoing, slow-moving efforts to legalize recreational marijuana. Such a move would create clear standards and a licensing process for drug sales. Currently, state lawmakers are considering establishing a cannabis control board to lay the groundwork for regulating marijuana derivatives.

Steele emphasized that the problems found at smoke shops are separate from the state’s licensed medical marijuana dispensaries, noting that the legal industry has been negatively impacted by unregulated stores circumventing taxes and restrictions on cannabis.

Last week, Pennsylvania Attorney General Dave Sunday joined colleagues nationwide in a joint letter urging Congress to close the loophole that has allowed “intoxicating hemp-derived THC products” to flourish in businesses prioritizing profits over public safety and health.

Steele warned that smoke shops in the region openly market products appealing to kids and teens. He displayed a photo from the grand jury report showing packages of edible THC products found in local shops.

“You’ve got Cheetos with marijuana leaves on it,” he said.
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