Anti-competitive legal claims against Smoore/CCell

Smoore (the parent company of cannabis vape brand CCell), a Chinese-based multi-billion dollar e-cig company, and its distributors have been accused of running an illegal cartel that has raised prices in the cannabis vape industry, and engaging in unfair legal tactics in a war against competitors. More specifically, Smoore stands accused of working with its distributors to fix prices, not compete with each other, and use abusive patent litigation to monopolize the cannabis vape market.

The result of Smoore’s alleged conduct?

Higher prices for cannabis businesses and consumers. These are not just one party’s allegations, but rather are the subject of three different lawsuits:

The lawsuits accuse Smoore and its distributors of employing many illegal tactics, including:

• Entering into distribution agreements that prohibit dropping prices below a minimum set by Smoore

• Mandating that distributors refrain from competing with each other and Smoore, which also sells CCELL directly to brands

• Conspiring with one another to enforce the above-described restraints on trade, including training distributors’ employees on these restraints

• Filing abusive patent litigation designed to drive smaller competitors out of the market, including Smoore’s 2021 International Trade Commission proceeding that resulted in several competitors going out of business despite ACTIVE’s victory.

ACTIVE believes in competition because it produces greater innovation and better pricing, which benefits business customers and consumers alike. That’s why ACTIVE has taken a leading role in fighting for a fair cannabis vape market, being the first party to file antitrust claims against Smoore.

As you would expect, the allegations against Smoore and its distributors have generated significant media interest. Here are some articles on the topic:

Beard Bros Pharms

MJ Biz Daily

Ganjapreneur

Nicotine Insider

Cannabis Musings

Green Market Report (paywall)