Unlicensed THC-infused products are now illegal in Arizona, as state officials enforce strict regulations to protect consumers and licensed dispensaries.
Arizona’s cannabis industry has expanded beyond flower and concentrate to include a booming submarket of THC-infused products—beverages, gummies, baked goods, and other edibles now account for a significant share of consumer interest. But as legal dispensaries grow more sophisticated, so too have the challenges posed by a gray market of hemp-derived and synthetic THC products sold outside the licensed system.
Now, following a formal order from the Arizona Attorney General, the window for unregulated sales has officially closed. As of April 24, 2025, any unlicensed business caught selling THC-infused edibles or beverages—regardless of whether they’re made from hemp—faces criminal and civil penalties.
Legal Framework Governing THC-Infused Products
Arizona voters passed Proposition 207 in 2020, legalizing recreational marijuana and empowering licensed dispensaries to produce and sell cannabis products under strict state oversight. That framework includes dosage limits, product testing, and packaging protocols for all THC-infused products, including beverages and edibles.
To legally sell THC-containing items, a business must be licensed as a “marijuana establishment” by the Arizona Department of Health Services (ADHS). Any THC product sold outside of this system violates Arizona law.
The 2018 Federal Farm Bill legalized hemp production nationally, so long as the final product contains no more than 0.3% delta-9 THC by dry weight. This clause opened the door for widespread sales of hemp-derived cannabinoids like delta-8, delta-10, and THC-O, often marketed as legal under federal law—even though their psychoactive effects are well documented.
The problem: Many Arizona businesses—some unknowingly, some deliberately—began selling these hemp-synthesized intoxicants outside the state’s licensed dispensary system, arguing that the Farm Bill permitted it.
Arizona Attorney General Kris Mayes has made it unequivocally clear: That interpretation does not fly in Arizona.
“The Federal Farm Bill of 2018 does not preempt any Arizona law that outlaws these products.”
—Attorney General Kris Mayes, March 24, 2025
The Compliance Order of April 24, 2025
On March 24, 2025, the Arizona Attorney General’s Office issued two formal notices—one to unlicensed retailers, and another to law enforcement agencies—stating that all unlicensed sales of THC-infused edible products are illegal, regardless of hemp origin.
“Beginning April 24, 2025, the AGO will take enforcement action against unlicensed businesses that continue selling THC-infused edible products that claim to comply with the Federal Farm Bill of 2018.”
That enforcement includes civil and criminal penalties, with possible felony charges for those found in violation.
A second letter, addressed to county attorneys, sheriffs, and police chiefs, makes it clear that the Attorney General’s Office expects full cooperation in enforcing these provisions. Local agencies have been encouraged to share this information with businesses in their communities and coordinate with the AGO’s Criminal Division.
“Your Offices may enforce civil and criminal penalties where appropriate as well.”
Public Safety Concerns
Unregulated products—especially those sold in bright packaging resembling candy—pose a clear risk to youth. Licensed dispensaries are required to verify age and follow packaging protocols, but unlicensed shops rarely follow suit. That discrepancy has fueled growing concern from health advocates and parents across the state.
The expanding presence of THC beverages has made it harder to detect cannabis impairment on Arizona roads. Without a standard roadside test for THC levels or real-time impairment, law enforcement must rely on outdated or inconsistent tools to determine whether someone is too impaired to drive.
Unlike state-regulated dispensary products, many hemp-derived or synthetic THC items lack lab testing, safety verification, or accurate dosage labeling. Inconsistent quality and unexpected potency can lead to hospitalizations, especially for consumers unaware of what they’re ingesting.
Economic Implications
Retailers—especially small businesses—who stocked up on hemp-derived THC beverages and edibles are now sitting on dead inventory. Some may be forced to shutter altogether, unable to recoup their losses or pivot their business model in time.
The Attorney General acknowledged that “some retailers may not have been aware of these restrictions” due to the confusing nature of federal vs. state law, but that hasn’t slowed enforcement. The April 24 deadline remained firm.
This regulatory clarity is a windfall for licensed dispensaries, who have long argued that gray-market sellers undercut their business and confuse consumers. With unlicensed operators now phased out, legal dispensaries will likely see an uptick in traffic, legitimacy, and—most importantly—state tax contributions.
Consumers who relied on cheaper, easily accessible hemp products may now face higher prices and longer drives to reach licensed shops. While this move strengthens quality assurance, it also raises questions about accessibility and affordability, especially for patients not enrolled in the state’s medical program.
Industry Reactions and Advocacy
Legal cannabis businesses have welcomed the AGO’s move. For years, licensed operators have invested heavily in compliance while watching unlicensed competitors skirt the rules. With enforcement now squarely underway, many dispensaries are reclaiming their customer base and pressing for further action against illicit THC vape cartridges and synthetics.
Several smoke shops, convenience stores, and even national retailers have expressed frustration over the abrupt nature of the ruling. Many argue that the Farm Bill gave them reason to believe their products were compliant—and that the state should have offered more education before dropping the hammer.
Groups focused on equitable cannabis access are urging the state to consider transitional programs for unlicensed sellers or subsidized pricing models for low-income consumers. They warn that aggressive enforcement may widen access disparities without thoughtful reinvestment.
The Compliance Curve
Arizona’s path to this point didn’t happen overnight.
The state legalized medical marijuana in 2010, building a foundation of cultivation and retail infrastructure that was later leveraged for the adult-use system created by Prop 207. The transition positioned Arizona as one of the more stable and commercially viable cannabis markets in the country.
Farm Bill Fallout
The 2018 Farm Bill, while progressive in its intent to expand hemp cultivation, had an unintended side effect: it introduced a pipeline for psychoactive products that could legally bypass state dispensary systems. For years, state regulators allowed that ambiguity to persist. That ambiguity has now been eliminated by formal legal opinion.
AGO Opinion No. I24-005
In AGO Opinion No. I24-005, released March 11, 2024, the Attorney General’s Office banned the sale of delta-8, delta-9 (hemp-derived), and any future hemp-synthesized intoxicants. The March 24, 2025, enforcement letters simply activated the penalties tied to that opinion.
Future Implications and Developments
Enforcement Beyond April 24
It remains to be seen how aggressively enforcement will continue after April 24. The AGO has stated its intent to prosecute, but actual case numbers and policing efforts will likely vary by jurisdiction and resource availability.
Possibility of State Licensing for Hemp Retailers?
A growing chorus of retailers and consumers are calling on Arizona lawmakers to explore a secondary licensing framework for hemp-derived cannabinoids, which would allow for regulated sales outside dispensaries without compromising public safety. Whether that gets traction remains unclear.
Innovation in Testing and Tech
Expect to see more research and development in THC impairment testing, smart packaging, and real-time cannabinoid detection to help bridge the regulatory gap. As edibles and beverages become more mainstream, safety tech may need to keep up.
The Line Has Been Drawn
Arizona is drawing a sharp line when it comes to THC-infused products: If you’re not a licensed dispensary, you’re out of the game. What was once a thriving gray market for hemp-derived edibles and beverages has now been reclassified as illegal, regardless of federal loopholes or consumer demand. The legal landscape has shifted, and any business that doesn’t adjust risks getting swept aside by enforcement—and buried by penalties.
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GreenPharms is more than just a dispensary. We are a family-owned and operated company that cultivates, processes, and sells high-quality cannabis products in Arizona. Whether you are looking for medical or recreational marijuana, we have something for everyone. From flower, edibles, concentrates, and topicals, to accessories, apparel, and education, we offer a wide range of marijuana strains, products and services to suit your needs and preferences. Our friendly and knowledgeable staff are always ready to assist you and answer any questions you may have. Visit our dispensaries in Mesa and Flagstaff, or shop online and get your order delivered to your door. At GreenPharms, we are cultivating a different kind of care.
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