The Ninth U.S. Circuit Court of Appeals in California is set to begin hearing arguments in a case that could determine whether the DEA can ban foods that contain hemp.

In 2001, the DEA ordered a ban on foods containing hemp, saying that the products violated the federal Controlled Substances Act. A court granted a motion to stay, however, after the hemp industry argued that the DEA's ban violated administrative procedures and that the ban would cause needless irreparable harm to the industry without cause or sufficient evidence to say that the products present any threat to the public.

Hemp food proponents contend that hemp seed and oil, like poppy seeds, are exempt from the federal law's statutory definition because trace infinitesimal THC in hemp seed is non-psychoactive and insignificant.

If the DEA wins the case, it could mean major losses for retailers, in particular organic and health-food stores.