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Tennessee retailers have two fewer products they can legally keep on the shelf.
As of July 1, 2026, new Tennessee laws prohibit kratom and the retail sale of nitrous oxide across the state. For convenience stores, smoke and vape shops, liquor stores and other retailers, these aren’t regulations to put on the “we’ll get to it” list.
They are already in effect.
Kratom Is Now Illegal in Tennessee
Tennessee’s Matthew Davenport’s Law significantly changed the state’s treatment of kratom.
Previously, Tennessee law distinguished between certain synthetic kratom compounds and kratom in its natural botanical form. The new law goes much further.
As of July 1, knowingly possessing kratom is illegal in Tennessee. The prohibition also covers manufacturing, delivering and selling kratom.
The law broadly defines kratom to include parts of the Mitragyna speciosa plant containing mitragynine or 7-hydroxymitragynine, substances obtained by extracting the plant, certain synthetic derivatives, and other kratom preparations.
For retailers, that means products such as kratom powders, capsules, gummies, liquid shots and extracts can no longer simply remain on the shelf.
Knowingly possessing kratom is a Class A misdemeanor, while manufacturing, delivering or selling it is a Class C felony. The law provides even more serious penalties for certain sales to minors.
Tennessee Also Shut Down Retail Nitrous Oxide Sales
Another new law taking effect July 1 is the Nitrous Oxide Abuse Prevention and Retail Sale Prohibition Act.
Under the law, a retail seller may not sell or offer nitrous oxide for sale to the ultimate consumer.
A first violation can bring a $2,500 civil penalty, with the nitrous oxide treated as contraband and subject to seizure. A second or subsequent violation carries a $5,000 civil penalty.
And there’s another consequence that beverage and hospitality businesses should pay particular attention to.
If a retailer holds a state or local certificate, permit or license authorizing retail sales — including licenses or permits involving beer, wine, alcoholic beverages or hemp-derived cannabinoids — a second or subsequent nitrous oxide violation requires the issuing authority to revoke that license or permit. The retailer cannot reapply for at least 12 months.
The law also makes it a Class E felony to provide nitrous oxide when there is reasonable cause to suspect it will be used for intoxication or similar effects.
Are There Exceptions?
Yes.
The nitrous oxide law does not eliminate every legitimate commercial use of N2O.
It specifically allows sales by manufacturers, distributors and wholesalers for medical or dental purposes, as well as for use in the commercial distribution of beverages and other food products.
That distinction is important for restaurants, bars and other food and beverage businesses that may encounter nitrous oxide as part of legitimate commercial operations.
The prohibition is aimed at retail sales to consumers, not eliminating legitimate commercial food, beverage, medical or dental applications.
What Tennessee Retailers Should Do Now
These aren’t upcoming changes. Both laws took effect July 1, 2026.
Retailers that previously carried kratom or consumer nitrous oxide products should review their inventory and make sure prohibited products have been removed from sale.
Businesses holding alcohol, beer or hemp-related licenses should be particularly careful with the nitrous oxide prohibition because repeat violations can jeopardize licenses unrelated to nitrous oxide itself.
As Tennessee continues changing the rules surrounding hemp-derived products, kratom, nitrous oxide and other regulated products, retailers should be reviewing more than what’s popular or profitable.
They also need to know what’s still legal to put on the shelf.
Harrington Beverage Law continues to monitor Tennessee’s changing regulatory landscape for retailers, alcohol businesses and other regulated industries.
Last modified: September 24, 2026
