Business
California's ban on certain hemp products clears early legal challenge
California’s emergency ban on certain hemp products cleared a legal challenge Friday brought by cannabis businesses that sought to block the new rules.
Los Angeles County Superior Court Judge Stephen Goorvitch denied the businesses’ request that he issue an order which would have temporarily allowed hemp sales while a lawsuit over the ban proceeded. The new regulations took effect in September.
In a ruling filed Friday, the judge called the temporary restraining order sought by the businesses a “drastic remedy” because it would have meant hurriedly blocking the implementation of the emergency regulations before a trial when the state and businesses would be able to fully present their cases.
“The potential harm to Californians, especially children, outweighs the potential that individual hemp businesses will not be able to adapt to the new regulations,” Goorvitch said in the ruling.
The decision is a blow to cannabis companies that filed a lawsuit challenging the new rules over concerns that hemp businesses will lose millions of dollars and some small businesses will be forced to shut down.
Jonathan Miller, general counsel of the U.S. Hemp Roundtable, said in a statement that the group is “disappointed with the court’s decision” and is reviewing its next steps in what could be a long legal process.
“We still hold out hope that Governor [Gavin] Newsom will come to the table and work with industry to achieve our mutual goal — to robustly regulate hemp products and keep them out of the hands of children — without devastating hemp farmers, business and consumers as does his emergency regulation,” Miller said.
The ruling keeps in place emergency regulations the state issued as part of an effort to protect young people from potentially dangerous hemp products. The U.S. Hemp Roundtable and hemp businesses such as JuiceTiva, Blaze Life and a cannabis company run by comedy duo Cheech Marin and Tommy Chong sued a California public health agency to block the enforcement of the new rules.
The regulations ban the sale of hemp-based food, beverages and dietary products containing detectable amounts of THC, a compound found in the cannabis plant that contributes to the mind-altering high associated with cannabis use, along with other intoxicating chemical substances. The new rules also state that people must be at least 21 years old to purchase hemp products and limit the number of servings of hemp products to five per package.
In denying the preliminary injunction, Goorvitch said the hemp coalition had failed to meet its burden of demonstrating it was likely to prevail at trial and that it stood to suffer irreparable harm if the ban on sales wasn’t blocked. Businesses can still sell hemp products without detectable levels of THC and “non-final food products” such as hemp flour and lotions with detectable levels of THC, the ruling said.
Jim Higdon, co-founder of Cornbread Hemp and a U.S. Hemp Roundtable member, said he thinks the judge doesn’t fully understand the industry and made the “wrong decision.”
“There’s a whole class of hemp businesses this ruling will destroy,” he said.
Higdon said his Kentucky business, which sells products such as hemp gummies and oil, has California retailers it wants to work with but it hasn’t been able to get its product on the retailers’ shelves because of the “regulatory uncertainty” in the state.
The California Department of Public Health proposed the ban because of concerns that hemp products with THC could harm young people whose brains are still developing. Consuming some of these products could “negatively impact cognitive functions, memory, and decision-making abilities,” the agency said in its findings. The agency didn’t immediately respond to a request for comment but typically doesn’t comment on pending litigation.
“We applaud the court for refusing to block California’s hemp regulations to protect consumers, especially children,” Tara Gallegos, a spokesperson for Newsom, said in a statement. “The court didn’t buy this attempt to reopen a loophole used by bad actors in the hemp industry to push dangerous intoxicating products into gas stations and corner markets.”
Some people consume hemp products with THC for relief from pain, anxiety, insomnia and other issues. People who rely on products for medical needs will still be able to obtain them through licensed adult-use and medical cannabis dispensaries, according to the state.
In the lawsuit, filed in Los Angeles County Superior Court, hemp businesses called the new rules “draconian” and compared them to “requiring candy to stop containing sugar.” The businesses allege in the lawsuit the agency violated state and federal laws, including those that legalized the production of hemp and govern the rulemaking process.
A trial setting conference is scheduled in late November.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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