California Bill Would Regulate Online Hemp Product Sales

A California Senate proposal looking to limit the sales of illegal, unlicensed cannabis products would set new rules for online cannabis marketplaces.

Full story after the jump.

A California Senate proposal is seeking to disrupt the online sale of illegal cannabinoid products by setting new rules for online cannabis marketplaces.

SB 378 would require online cannabis markets to address in their terms of service whether advertisements and business information of unlicensed cannabis operators were visible on its marketplace, and “whether the marketplace verifies the licenses of sellers of cannabis or cannabis products whose advertisements and business information are viewable on its marketplace.” Online platforms that do not verify the licenses would be required to display a warning to consumers about the risks of cannabis from unlicensed sources before they can engage with the sellers. The bill would also require online marketplaces to allow individuals to report any illegal cannabis products listed on the platform.

“When Californians voted to legalize cannabis — which I strongly supported — they were not signing up to make sketchy hemp products available to anyone of any age online,” said state Sen. Scott Wiener (D), who co-sponsored the bill.

Wiener says illegal hemp products and untested cannabis products are being sold alongside legal cannabis products on certain online markets.

“The sale of illicit hemp and cannabis products that contain alarming levels of THC and synthetic intoxicants undermines the legal cannabis market as well as California’s public health and safety. We can tackle this problem by going after the online platforms that are allowing these products to be sold freely without so much as an age verification requirement. By tackling illicit hemp products, we can support legal cannabis businesses and improve California’s public health and safety.” — Wiener, in a press release

The bill is supported by the United Food and Commercial Workers Union, which supported California’s cannabis legalization measure “because of the stringent testing and protections it would bring to consumers,” according to John Fram, president of UFCW Local 5.

“SB 378 will level the playing field between illicit cannabis businesses and legal businesses that has been mismatched for years by ensuring marketplaces advertising illicit cannabis and intoxicating hemp will be held liable.”

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