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"
Colorado joined a coalition of states and local governments in suing the National Highway Traffic Safety Administration over its rule weakening fuel economy standards for new passenger cars and light trucks. The coalition alleges the rule violates federal law; the press release does not report a penalty or a court ruling.
Colorado Attorney General Phil Weiser joined a multistate and local coalition challenging the EPA’s repeal of greenhouse gas limits for many coal- and gas-fired power plants. The coalition seeks to have the repeal struck down and the protections restored, and separately notified the EPA of its intent to sue over regulation of emissions from existing gas plants; no penalty or final court remedy is reported.
$469.0M
Colorado joined a 43-state-and-territory settlement resolving allegations that Sandoz and Fougera participated in a long-running conspiracy to inflate generic drug prices, reduce competition, and restrain trade. The companies agreed to pay approximately $469 million and implement reforms; the states are seeking court approval.
$35.0M
Colorado, the FTC, and a coalition of state attorneys general reached a settlement with Corteva over allegations that its post-patent loyalty program restricted distributors from selling competing generic pesticides. Corteva must end the challenged conduct and pay the states $35 million for fees and costs; the agreement is in effect for 10 years.
$2.3M
Colorado and a bipartisan coalition of attorneys general reached a $2,287,455 settlement with Laboratory Corporation of America over the 2019 data breach at its debt collector, American Medical Collection Agency. The settlement requires stronger vendor risk management and information security practices, with particular requirements for medical debt collectors.
Colorado Attorney General Phil Weiser joined a coalition of 12 attorneys general in settling a lawsuit against Paramount Skydance Corporation over its merger with Warner Bros. Discovery, which the states alleged would harm competition by lowering film output and raising prices. The settlement includes a five-year commitment to increase film output, a $1.5 billion investment in domestic production, a $47.5 million worker fund, and an independent monitor. This is an antitrust/competition enforcement action, not a privacy enforcement action, despite the extraction schema's privacy focus.