The City of San Diego has hauled two neighborhood smoke shops into court, accusing them of quietly running unlicensed THC operations out of hidden back rooms and sidestepping the rules that come with legal cannabis sales. The civil complaint targets Mira Mesa Smoke and Vape Inc. and Prime Smoke and Vape, and names two individuals as the companies' principal officers. City lawyers are asking a judge to shut down the alleged unlawful sales, declare the operations a public nuisance, and hit the businesses and associated individuals with civil penalties.
As reported by NBC 7 San Diego, the City Attorney's Office says undercover investigators were able to buy THC products tucked away in "staff-only" back rooms, away from the main retail floor. According to the lawsuit, the shops did not have the required state cannabis licenses or city cannabis outlet permits. The complaint relies on California's Unfair Competition Law and the Uniform Controlled Substances Act. It seeks civil penalties of up to $2,500 per violation under the UCL and up to $25,000 for each offense under the Health and Safety Code, along with enhanced penalties where violations allegedly targeted seniors or people with disabilities.
California business records list Mira Mesa Smoke and Vape at 9811 Mira Mesa Boulevard and identify an officer named Wade ea Wadeea, according to public filings. Secretary of State statements of information connect that address to the incorporated business and to a registered agent at the same location. Prime Smoke and Vape is also named in the complaint, although online corporate records for that entity were not immediately available.
Statewide Crackdown and Hemp Rules
The San Diego lawsuit lands in the middle of a broader statewide crackdown on hemp-derived THC products that has left many retailers trying to navigate a maze of changing regulations. SFGATE reported last year that Gov. Gavin Newsom moved to restrict intoxicating hemp products, a move that helped push state and local agencies toward more aggressive enforcement against questionable cannabis and hemp sales. That shifting mix of emergency rules and new regulations has left some smoke shops selling hemp-based vapes, edibles and concentrates uncertain about what is allowed and exposed them to civil enforcement when prosecutors say they cross the line.
The city identified the individuals named in the complaint as the corporate officers for the two stores, and NBC 7 San Diego reports the defendants did not immediately respond to a request for comment. The lawsuit argues that by allegedly skipping licensing requirements and product-labeling safeguards, the businesses "undermined protections designed to safeguard public health, ensure product safety and prevent diversion into illegal markets." Along with civil penalties, the city is asking for injunctive relief and abatement to stop the alleged conduct.
City's Enforcement Push
San Diego's City Attorney has made a habit of using civil lawsuits to go after retailers selling banned or unregulated products, a strategy that pairs legal pressure with the goal of recovering investigative costs. Earlier this month, the office secured a six-figure payout in a related case over vape and tobacco sales, as reported by a six-figure settlement. City officials have framed these civil actions as a crucial tool when fines and warnings do not persuade businesses to comply and when officials say unsafe products need to come off store shelves.
What the Law Allows
The lawsuit leans on the Unfair Competition Law, which allows government agencies to seek injunctions and civil penalties over unlawful or unfair business practices, along with state-controlled-substances provisions that prohibit the unlicensed sale of intoxicating cannabis products. If San Diego prevails, the court can order abatement, injunctive relief, and monetary penalties, with the exact outcome dependent on what a judge ultimately finds at trial or in any settlement. Public legal resources such as FindLaw provide background on the UCL and the range of remedies courts can impose.
The case is now part of San Diego's civil docket, and the city has asked the court to halt the alleged unlicensed THC sales and impose fines if it proves the violations.
