IGNORING REALITY

Companies such as The Merry Hempsters will not be quite so merry if the
federal government has its way in restricting the sale of consumable
hemp-based products. The Eugene company, which produces hemp-oil based,
all-natural lip balms and healing products, could very well shut down if a
Drug Enforcement Administration regulation goes into effect. In October
2001, the DEA issued a rule which declared that that all industrial hemp
products are no longer exempt from the definition of marijuana as defined
in the Controlled Substance Act (CSA).

The proposed rule prohibits the sale of hemp food products, said David
Frankel, an attorney challenging the regulation. Further, he said, the DEA
could expand the measure to include hemp-based lip balm, since lip balm is
theoretically an ingestible product.

Frankel argues that the rule is illegal because it ignores the reality that
industrial hemp products contain only trace amounts of naturally occurring
THC -- about .0001 percent -- and that they therefore have absolutely none
of marijuana's psychoactive effects.

Although the rule was due to go into effect March 18, the Merry Hempsters'
logo will continue to show its smiling face on the shelves of stores across
the country. Last week, the 9th Circuit Court of Appeals blocked
enforcement of the rule until the court determines its legality. Lawyers
and activists challenging the DEA interpretive rule are therefore confident
that the case will ultimately be decided in their favor.

Frankel calls the rule "a form of economic terrorism" against the hemp
industry. Many small hemp producers have lost income as a result of the
rule, even though its legality has yet to be determined. While some stores,
such as Sundance in Eugene, decided to wait to take their edible hemp off
the shelves, others feared the consequences of waiting. The national chain,
Whole Foods, chose caution and removed all of its hemp-based food and body
products from its shelves on Feb. 5.

As a result, the Merry Hempsters, a business centered completely on hemp
products, experienced a huge economic setback. Owner Gerry Shapiro is
relieved that Whole Foods, responding to the court's action, will restock
its shelves with his hemp-based products later this week. Shapiro remains
optimistic that the court will send a strong message to the DEA that their
battle on hemp is futile. He says, "I do not believe the DEA has legal
authority, credible science, common sense, or justice on their side."