Eaze, a cannabis delivery platform, has been hit with a lawsuit over accusations it has an unfair advantage by accepting credit card payments.
Herban Industries filed the complain in the San Francisco County Superior Court this week and has alleged that Eaze is behind a system to conceal cannabis purchases as well as increase sales.
With marijuana illegal on the federal level in the United States, most credit and debit card companies do not allow the purchase of cannabis products, as per federal law.
To get around this, Eaze is accused of using “seemingly innocuous” names to hide these cannabis transactions.
“Eaze conspires to disguise the cannabis transactions as transactions for dog toys, dive gear, carbonated drinks, drone components, and face creams, among other things, to obtain approval for these transactions,” the complaint reads.
“This lawsuit is a thinly-veiled attempt by publicly traded Canadian company DionyMed to gain an advantage through litigation, prop up their failing stock price, and publicize their new delivery platform,” Eaze spokesperson Elizabeth Ashford responded.