The AG shouldn't have a problem establishing that this head shop repackaged and relabled product. Their ad agency was busy boasting to media about it and how clever the owner was, or so the story I hear is.
The problem with selling a product of dubious legality in a storefront operation is the paper trail as well. We live in a time when younger people buy a soda with a credit card...You can bet they buy their bath salts the same way.
A sales tax audit would also keep the head shop industry on their toes. These folks attracted attention from the cops, media, lawyers and prohibitionists. That's a big array of enemies to fend off.
Attorney General sues Tebb’s head shops - YNN, Your News Now