The Colorado Attorney General shut down Smokin' Genie, a Fort Collins smoke shop owned by AIH Enterprises, LLC, and banned its owner from the industry for five years after the shop illegally sold kratom to a minor and failed to properly label kratom products. The settlement requires the store to cease operations, destroy inventory, and pay $200,000 if they violate the terms.
Smokin' Genie and its owner agreed to fully comply with the Colorado Consumer Protection Act, cease all operations by May 31, destroy remaining inventory, and pay $200,000 to the state if they violate the settlement terms. The owner is banned from the industry for five years and must pay a $20,000 re-entry fee to start a new business selling psychoactive products after the ban.
In-house legal teams should review vendor agreements for compliance with age-restricted product sales, particularly for kratom or other psychoactive substances. Key clauses to examine include: (1) product labeling requirements to ensure accurate and compliant labeling; (2) age verification procedures for sales to minors; (3) compliance with state consumer protection laws; (4) termination rights for violations of age restrictions; and (5) indemnification clauses for fines or penalties arising from illegal sales. Additionally, contracts with distributors should include provisions requiring adherence to all applicable state regulations, including SB25-072 in Colorado.
Entity
AIH Enterprises, LLC
Industry
RetailOfficial Press Release
https://coag.gov/press-releases/fort-collins-smoke-shop-shut-down-for-illegally-selling-kratom-product-to-minors/
05.20.2026.Smokin Genie AOD Final Executed Copy 002
https://coag.gov/app/uploads/2026/05/05.20.2026.Smokin-Genie-AOD-Final-Executed-Copy-002.pdf
Colorado Attorney General Enforcement Page
https://coag.gov/
"AIH Enterprises, LLC"
"Pay $200,000 to the state if they violate the terms of the settlement."
"Colorado Consumer Protection Act"
"SB25-072"
"failed to properly label their kratom products, and illegally sold kratom to a minor under the age of 21 years old"
"five-year industry ban in the state of Colorado of its owner"
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