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Delivery Platform Eaze Sued By Herban Industries Over Credit Card Payments

The lawsuit alleges unfair business practices by the delivery giant

Eaze is having a rough go. Just last week, Google announced that they were booting Eaze from their Google Play platform unless they removed sales functionality from the app. Just after that, the firm which supplies drivers to fulfill Eaze orders laid off 136 workers in San Francisco. The move came following an updated content policy which stated that apps selling or facilitating the sale of marijuana were to be banned.

This new problem comes in the form of a lawsuit filed by Herban Industries in the San Francisco County Superior Court on Tuesday and first reported by Mashable on Thursday. The lawsuit stated that Eaze uses its system to conceal cannabis purchases — and increase sales.

To get around US law and banking regulations, Eaze is accused of using “seemingly innocuous” corporate names to hide cannabis transactions which otherwise would have been banned.

Click Here To View Herban Industries v. Eaze on Scribd

“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 read. 

“To perpetrate these frauds, Eaze created or partnered with Cyprus- and U.K.- based shell corporations that purport to sell these seemingly innocuous products but in fact exist solely or primarily for the purpose of misrepresenting the nature of the underlying transactions.”

MRR will continue to follow the story as it develops.

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