A legal highs industry organisation has today announced it will take Hamilton City Council to the High Court to seek a judicial review of its legal highs policy which has seen retailers shut down in the city.

The STAR Trust says it has been forced to defend licensed reatilers from a Local Approved Products Policy (LAPP) that has gone outside the mandate of the Psychoactive Substances Act.

"This is old school prohibition," said STAR Trust general manager Grant Hall.

"Right now if you are a law abiding citizen in Hamilton and you want to enjoy a low risk social tonic you are being forced to travel out of town or go online. Organised crime benefit the most from prohibition and are happy to satisfy demand but they don't do quality control, don't check age and don't pay taxes.

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Mr Hall alleged that "ratepayers of Hamilton are the losers here because of a knee jerk reaction to a vocal minority."

Council have not yet been served with any papers.