Penalty Amount
$152,000
Colorado Attorney General Phil Weiser announced a $152,000 settlement with smoke shop owners Sahansila Karki and Gokul Tiwari for selling kratom products that exceeded the legal potency limit and failed to meet labeling and packaging requirements. The settlement requires compliance with the Colorado Consumer Protection Act and the Daniel Bregger Act, product testing, documentation of purchases, and payment of $152,000, with an additional $500,000 due if the terms are violated.
Karki and Tiwari agreed to fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act, test all kratom products sold in Colorado to ensure compliance with applicable laws, document all kratom product purchases from third parties with invoices and receipts, and pay $152,000 to the state. If they violate the settlement terms, they must pay an additional $500,000.
In-house legal teams should review vendor and supplier agreements for kratom or other regulated products to ensure they include robust representations and warranties that products comply with all applicable laws, including state-specific potency limits and labeling requirements. They should also verify that contracts contain indemnification clauses protecting the company from regulatory fines and penalties, and require vendors to provide certificates of analysis or other testing documentation. Additionally, companies should include audit rights to confirm compliance and consider adding provisions that allow termination for regulatory violations.
Entity
Sahansila Karki and Gokul Tiwari
Industry
RetailOfficial Press Release
https://coag.gov/press-releases/colorado-smoke-shop-owners-to-pay-152000-for-selling-illegal-kratom-products/
2026.09.14 Million Smoke Fully Executed AOD 1
https://coag.gov/app/uploads/2026/09/2026.09.14-Million-Smoke-Fully-Executed-AOD-1.pdf
Colorado Attorney General Enforcement Page
https://coag.gov/
"Sahansila Karki and Gokul Tiwari"
"Pay $152,000 to the state."
"Fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act."
"sold kratom products in excess of the legal potency limit"
"failed to ensure the kratom products adhered to labeling and packaging requirements"
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