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A New Jersey business accused of illegally offering free cannabis “gifts” with grocery orders must turn over potentially incriminating business records, a state appeals court ruled.
Slumped Kitchen — a Burlington County-based delivery service that now appears to be closed — appealed a 2021 judge’s order enforcing a subpoena from the state Division of Consumer Affairs for its business records. The business’ attorneys argued producing the documents would violate “its Fifth Amendment privilege against self-incrimination.”
In a 12-page opinion published Thursday, the two-judge appeals court panel disagreed.
“A plain reading of the subpoena supported the judge’s determination that the requested documents were corporate in nature and not personal because the information related to plaintiff’s ‘business practices, including licenses, advertising methods, and age-verification policies,’” the appeals court ruling said.
The Fifth Amendment does not apply to the company’s business records, the judges said.
The “case law does not extend the Fifth Amendment right against self-incrimination to business records of a corporation, partnership, sole proprietorship, or other business venture,” the judges wrote.
Daniel Sweetser, an attorney for the Slumped Kitchen, declined to comment on the ruling. He also declined to say whether the business would turn over its records or if it would appeal the case to the state Supreme Court.
The office of state Attorney General Matthew J. Platkin, which argued the state’s case, did not immediately respond to a request for comment.
Slumped Kitchen marketed itself as “selling and delivering groceries to customers throughout New Jersey.” But, the company was allegedly drawing in business by “gifting” customers up to 28 grams of weed in connection with the sale of snacks, such as brownies and cookies, according to court documents.
The price of the snack delivery depended on whether the customer selected a 14 gram or 28 gram gift of cannabis from Slumped Kitchen with their order, court documents say. The company also gave consumers with valid medical marijuana cards a discount.
Slumped Kitchen was created during a time when “gray market” operators were popping up all over New Jersey. After the state legalized cannabis in 2021, but before it had set up regulations for retailers, there were several businesses openly pairing “free” marijuana with other exorbitantly priced goods.
Based on the company’s website and social media, the state Division of Consumer Affairs launched an investigation into Slumped Kitchen in June 2021 for potentially misrepresenting its sales. Slumped Kitchen was served with a warning to cease and desist as well as a subpoena seeking business records from Nov. 1, 2020, through June 29, 2021.
Slumped Kitchen did not answer the subpoena, but the company’s attorney raised concerns with state officials about potential violations to the Fifth Amendment if the company provided the business records.
Attorneys for the two sides agreed Slumped Kitchen would provide a formal response to the subpoena, including specific objections, by Nov. 2, 2021, according to court records.
However, Slumped Kitchen did not respond on the agreed upon date, court records say. Instead, the company filed a motion the following day to quash the subpoena in court.
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Jackie Roman may be reached at jroman@njadvancemedia.com.