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The Midwest's largest producer of synthetic 7-OH is no longer allowed to sell kratom or any of its derived products in Missouri. The Missouri Attorney General’s office says Kansas City-based American Shaman has agreed to suspend sales of kratom and 7-OH in the state.
Attorney General Catherine Hanaway made the announcement in a press release Thursday morning.
“Kratom alkaloids, especially 7-OH, are dangerous opioids that carry serious health risks,” Hanaway said in Thursday’s news release. “We stepped in to shut down deceptive tactics that put public health in danger.”
The agreement comes as local, state and federal have increased scrutiny on the company and its products.
KSHB 41 News reporter Isabella Ledonne has covered that scrutiny extensively in her reporting over the last several months, in the KSHB 41 News I-Team series Strong High, Weak Laws.
"I definitely think the persistence on covering the subject as a whole has been a lot of help," said Joey Thomas, Healing House KC director of recovery housing.
American Shaman has been at the center of multiple investigations, federal seizures of products and most recently, a lawsuit from the Missouri Attorney General alleging dangerous and deceptive marketing.
“Retailers who use free samples and misleading marketing to hook consumers, especially those struggling with addiction, will face swift enforcement," Hanaway said.
The Kansas City founder, Vince Sanders, credits himself for creating synthetic 7-OH and claims its brought in millions of dollars. Effective immediately, American Shaman will not sell any kratom product online or in stores to Missouri consumers.
The agreement also calls on the company to cease Missouri-targeted retail advertising — including billboards — and within 30 days, “put controls and contract terms in place to prevent Missouri retail sales.”
"It's more than a step in the right direction, it's really good," Thomas said.
Thomas works at Healing House KC, an addiction specialist center offering safe housing and programs for those in active recovery. He has seen dozens walk through the doors who are dealing with a 7-OH addiction.
"It's been a big struggle for the people I love and care about," Thomas said.
He explained Thursday's settlement agreement is a relief, combined with the recent bans on 7-OH in Kansas City, Missouri, and the state of Kansas.
"It's really good for people out there that struggle with addiction that were turning to (7-OH) as kind of a back up option," Thomas said.
In addition to stopping all American Shaman kratom sales in Missouri, the settlement also agrees to not ship or deliver products to other retailers.
The agreement allows the attorney general to seek court orders to stop any retail sales of any kratom product in the state, and allows the state to assess a $5 million penalty if American Shaman fails to “immediately remedy its breach.”
"I think (a $5 million penalty) is a big incentive to stop selling it, right?" Thomas said.
A spokesperson with the Missouri Attorney General's Office told Ledonne that the settlement prohibits founder Vince Sanders from creating any American Shaman franchises to sell kratom products under a different name. It also prohibits the company from changing the chemical compound of substances to make them technically different than 7-OH, falling under a provision of blocking the sale of all kratom alkaloids.
"This stuff just pops up overnight, and just for a few bucks, we're making sure to shove it in people's face," Thomas said. "That's what's dangerous."
Kratom and 7-OH are still technically legal in the state of Missouri, after multiple proposed bans failed to pass in the General Assembly this year.
"It's still happening, it's still everywhere, and until Missouri buttons down on that, it's going to be an issue," Thomas said.
Attorney General Hanaway told Ledonne in a May press conference she hopes the Missouri Legislature will pass a ban next session.
"I am disappointed that they weren't able to come to some conclusion," AG Hanaway said. "While we might have been at the forefront a few months ago, states all over the country are banning the substance and I'm hopeful the legislature will do that next year."
It is what Thomas is also hoping for, as he has been pushing for regulations and legislation since our first story aired seven months ago.
"I know we've had so many different people from state legislators and different people reach out because of these stories," Thomas said. "I really do think this had such a big part of it."
While a spokesperson for the Missouri Attorney General's Office told Ledonne details of the settlement, he stated those documents would not be publicly available as part of the settlement agreement.
Ledonne reached out to American Shaman's team of attorneys for a statement regarding the settlement, but did not hear back at the time of publication.
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