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The Tennessee Alcoholic Beverage Commission discovered more than 650 unlicensed retailers selling hemp-derived THC products during a recent sweep of over 4,400 stores. New state regulations require these businesses to be licensed by the Department of Agriculture to ensure industry oversight and public safety.

Tennessee Regulators Find Over 650 Shops Selling Unlicensed Hemp

Mar 13, 2026

Source:

Graham Abbott

Ganjapreneur



The Tennessee Alcoholic Beverage Commission (TABC) said it found more than
650 businesses selling hemp-derived THC products without a license, WKRN
reports.

Since January 1 of this year, the agency has been tasked with regulating
the state’s hemp industry. Agents canvassed more than 4,400 stores during
the first months of the year and reported finding over 650 retailers
selling hemp-derived cannabinoid products without a license.

Tennessee passed its hemp rules in 2023, which require hemp-derived
cannabinoid businesses to be licensed by the state Department of
Agriculture.

TABC Executive Director Russell Thomas said, “Many of them were not
surprised, and frankly, I think knew that they were operating illegally and
now know now that we have oversight, we are not going to allow them to
continue to operate without a license.”

“It’s really important to the public to know that if they buy these
products, they’re buying them from responsible businesses.” — Thomas, in
the report

Tennessee approved new restrictions last year on intoxicating hemp product
sales, but the industry negotiated a delayed start to the rules so
businesses could continue operating until their licenses expire on June 30,
2026.

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