Earlier this year, Twitter became the first social media company to allow cannabis companies to market their brands/products to customers in the U.S. Prior to that, the company had allowed advertising for hemp-derived CBD products – and only topical ones at that.

Now, Meta, the parent company of Instagram and Facebook, as well as new social networking platform Threads, announced it will allow cannabis advertising – but only for non-ingestible CBD products. Restrictions on hemp advertisements on these platforms are also easing. In a written statement announcing the new approach, the company said so long as the CBD products contain no more than 0.3 percent THC per the federal standard, it can be advertised – subject to certain rules.

Among the Meta rules for CBD and related products advertising for CBD companies:

• No targeted marketing of CBD products to people under 18.
• Be in full compliance with all local laws and regulations, as well as industry guidelines.
• Products are certified with Legitscript, a company that oversees/approves lab testing by third parties.
• Meta has given its written approval for such advertisement.
• Avoid claims – express or implied -that CBD products can cure, treat, prevent, lessen, or diagnose any medical condition or disease in people or animals.

As for non-ingestible hemp products, such as fiber and seeds, businesses will no longer need to obtain written approval to run marketing campaigns of their products in the U.S., Mexico, or Canada.

The company is also no longer requiring that CBD ads serve the purpose of educating, advocating, or giving public service announcements, as was the previous policy, so long as they aren’t selling any illegal CBD products.

As for cannabis, Meta is still currently prohibiting any promotions that advertise cannabis products containing more than 0.3 percent THC or any related psychoactive elements.

Google, meanwhile, has also relaxed its cannabis marketing rules – at least as it relates to FDA-approved CBD pharmaceuticals and hemp-derived topical CBD with less than 0.3 percent THC content. Legitscript certification is also required for Google Ads, and if you mention words like “cannabis,” “weed,” “marijuana,” and a few others, you can be penalized by the algorithm.

This move aligns Meta more closely with the policies of other social media platforms, with one big exception: TikTok. While there are some cannabis retailers who promote their products on the platform, they’ve gotten fairly creative about it, using clever euphemisms and symbols and focusing on education rather than sales. Using the word “cannabis” or showing clear cannabis imagery is strictly prohibited by the platform. And if you do decide to chance it, there’s always a risk, however, that the platform will identify your content as a violation of their terms and services and have you banned. Sometimes even if accounts aren’t outright banned, they may be “shadow-banned,” which is when the algorithm makes it so your content is only visible to those who seek it out directly.

If you have any uncertainty about whether your ads – or ideas for ads – will hold up to all relevant laws, industry regulations, and platform policies, run them by a Los Angeles cannabis business lawyer first.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

CBD and Related Products, Meta

Introduction to the Advertising Standards, Meta

More Blog Entries:

Twitter Marijuana Advertising Rules Still Restrictive, April 5, 2023, Los Angeles CBD Advertising Lawyer Blog

Public acceptance of CBD and cannabis products has grown, use has expanded, and even the federal government has been steadily easing restrictions.

However, where companies are too often getting caught up in litigation and regulatory scrutiny is with respect to potency, mislabeling, and misbranding.

Let’s start with the risk of product liability claims. For those who are unfamiliar, product liability is when a consumer alleges that a product was defectively designed, defectively made, or the warning about the risks was inadequate. Claimants don’t need to prove negligence, but they do need to show the product was the cause or a major contributing factor to the plaintiff’s illness or injury.

The long-term adverse impacts of CBD (or lack thereof) aren’t really widely known because research on these products has been so restricted over the last several decades. The U.S. Food and Drug Administration has raised concern about the potential for CBD to interact negatively with certain medications, and that it might cause liver damage. But the extent to which this is true isn’t well-known because it hasn’t been thoroughly studied. These potential harms could end up being the subject of lawsuits in the future. President Joe Biden recently passed a law permitting advanced research on the risks and medical benefits of both cannabis and its derivatives – including hemp-derived CBD.

While CBD companies aren’t expected to have a crystal ball in knowing all the possible side effects, they would be wise to keep a close bead on emerging research, and ensure they’re both properly monitoring their product and any reported issues. They should also be communicating regularly with regulatory agencies.

The bigger issue in terms of product liability, at least in the short term, is labeling. Improper labeling – whether with respect to potency or mixed ingredients – has been the subject of major headaches for the cannabis and CBD industries the last few years. In 2022, the FDA handed out 33 warning letters to CBD companies for label issues like:

• Product potency didn’t match the numbers on the label. Sometimes these claims stem from lower potency than advertised. Other times, CBD companies have been called out for claims of containing “zero THC” when in fact, there was THC in the products.
• Misbranding, where the product labels provided inadequate instructions for consumer use.
• Making claims the product could be used medicinally for certain conditions when it legally couldn’t make such claims. Examples included promises to treat conditions ranging from diabetes to COVID-19. (Companies cannot make medical claims on non-FDA approved drug products.)
• Label mix-ups between THC and CBD products. (This is a major mistake that in several cases has resulted in big fines and a string of civil lawsuits and later settlements after a half a dozen people who were hospitalized for serious health issues when they consumed what they thought was CBD, but was actually THC. In one case, the family of an elderly man says he died as a result of such a mistake. In another, a Kentucky man drove into a bus after using a CBD vape that actually contained high quantities of THC.)

Product contamination is another legal issue to be wary of. A number of CBD product liability lawsuits have involved contamination of their products with pesticides. A Canadian company recently paid out $2.31 million in a class action lawsuit alleging just this.

Lastly, inaccurate spread of information through advertising – on websites, social media platforms, and more – can come with serious penalties. This includes fake celebrity CBD endorsements.

In general, CBD companies would do well to focus on quality control and pay close attention to the developing science. Also, contracting with a CBD lawyer is a smart, proactive way to ensure your operations stay above board and ahead of the curve on CBD litigation trends.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Warning Letters and Test Results for Cannabidiol-Related Products, February 2023, U.S. Food & Drug Administration

More Blog Entries:

Twitter Marijuana Advertising Rules Still Restrictive, April 5, 2023, CBD Product Liability Lawyer Blog

While a good many of these faux celebrity endorsement have come from scammers, a few have involved actual CBD companies.

Among the recent instances of celebrities publicly denouncing use of their likeness or phony endorsements for CBD products:

• Tom Brady. The pro-footballer has flatly denied his purported endorsement of CBD and keto gummies, as depicted in a number of approved Facebook ads – some of them sexually-explicit and clearly scams.
• Phil McGraw. The name and likeness of “Dr. Phil” was used by a scam website that led users to believe they were on the Fox News website, where there was an ad indicating his endorsement of CBD gummies. One article even stated McGraw and Brady were teaming up in their endorsement of CBD gummies. They had not.
• Dolly Parton. The 77-year-old country music singer/songwriter issued a statement saying that, contrary to circulated claims on various social media ads, she had never been associated with or endorsed any keto oils or CBD product.
• Keanu Reeves. “The Matrix” actor was compelled to release a statement last year clarifying that he had never endorsed any CBD gummy or CBD oil product, and had never been interviewed by any CBD company for its website.

Two recent cases that have led to litigation involved include “Jeopardy!” host Mayim Bialik and actor Clint Eastwood (and the company that owns the right to his likeness).

Bialik’s lawsuit lists 32 unnamed companies (identified by the IP addresses, mostly situated in the Dominican Republic, France, and India), and alleges they’re illegally using her likeness to promote fake CBD oil and CBD gummies. Bialik says she’s never endorsed the product, never given permission for her name/image to be used, and has never been compensated for its use by these operators.

Eastwood, meanwhile, has had two substantial successes on the legal front for illegal use of his likeness to sell CBD products. Both cases were initially filed in federal court in Los Angeles against three CBD manufacturers and marketers. The nonagenarian’s image was reportedly featured in online articles falsely claiming that he endorsed these products.

One of the companies, based in Lithuania, was ordered in 2021 to pay $6.1 million for unauthorized use of Eastwood’s name and likeness, as well as attorney’s fees. An injunction was imposed to block future use of his name and likeness for their products.

Then last year, Eastwood was awarded $2 million in a lawsuit against another CBD retailer and a Florida-based internet marketing service that purportedly used his name and image without permission to promote its products in an online magazine. That page contained an article his name and made-up quotes that indicated his support for CBD in general and the defendant’s products in particular.

Eastwood said he’s never endorsed cannabis, and in fact has only ever agreed to one endorsement in his whole career: A 2012 Super Bowl TV ad highlighting the nation’s economic gains since the previous recession.

Bottom line: Don’t make the mistake of thinking A-listers won’t notice if you swipe their likeness for online sales. It’s a high-risk move that could cost your company dearly. If you are seeking an endorsement of some kind from a celebrity, go through the proper channels, ensure they’re fairly compensated, and have your Los Angeles cannabis company attorney review your contract.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Clint Eastwood Wins $6.1 Million CBD Lawsuit, Oct. 3, 2021, by Sarah Bahr, The New York Times

More Blog Entries:

Breakdown of U.S. Rules for CBD Cosmetics by L.A. Cannabis Business Lawyer, April 16, 2023, Los Angeles CBD Lawyer Blog

The Modernization of Cosmetics Regulation Act of 2022 (better known as MOCRA), it’s the first time cosmetic rules have been updated by Congress through the Federal Food, Drug, & Cosmetics Act since it was passed in 1938. Other aspects of the law have been updated many times over as we’ve seen evolutions of technology, science, product safety, and responsible resourcing advocacy. Still, none of those expressly addressed makeup laws until MOCRA.

Prior to these changes, makeup companies didn’t legally have to test their products or the individual ingredients to ensure safety. Businesses didn’t have to register their production facilities with the FDA, abide by good manufacturing practice rules, or notify the government when there are adverse reactions (even life-threatening ones). Additionally, the FDA didn’t have the power to recall cosmetic products – even those that could be deadly. MOCRA rectifies all this and grants the FDA authority to oversee regulation of makeup products. (Small businesses may be exempt from certain requirements, depending on the specific circumstances.)

Cosmetics are defined not just as makeup, but those products intended for application to human bodies for cleaning, beautifying, altering appearance, or promoting attractiveness. Any product that promises to treat or prevent a condition or disease or alters some bodily function is classified as a “drug” by the FDA. It’s worth noting that CBD products can fall into both categories, but we’re specifically here just talking about CBD-infused cosmetics – though many do promise anti-inflammatory properties. These can include products like:

• Lip balm and lip gloss
• Moisturizers
• Under eye serums
• Hair creams
• Scalp oil
• Skin cleansers
• Face masks
• Deodorant
• Mouthwash
• Concealer/color corrector
• Mascara

What Does This Mean for CBD Cosmetics Companies?

Companies that produce makeup or other cosmetic products with CBD (hemp-derived) or other cannabinoids are now bound by MOCRA requirements with respect to the following practices:

• Product listing.
• Product registration.
• Facility registration.
• Good manufacturing practices.
• Record-keeping.
• Product recalls.
• Safety substantiation.
• Adverse event reporting to the government.

While states might have their own laws pertaining to cosmetics, MOCRA supersedes those.

It’s worth noting that federal prohibition on cannabis could make complying with certain provisions tricky. For example, if CBD cosmetic products are sourced from a larger cannabis producer, those facilities might not be able to be registered with the FDA due to marijuana’s ongoing classification as a Schedule I narcotic. That said, states are free to pass their own requirements for product and facility listing that align with MOCRA. We suggest companies consult with an attorney to ensure they are in compliance with the law.

As our Los Angeles CBD lawyers can explain, manufacturing CBD cosmetic products may ultimately be more expensive because they’ll have to acquire and maintain proof of their safety and ingredients. On the other hand, the ability to bolster consumer confidence in product safety is important for just about every product maker – particularly those in newer markets like CBD cosmetics. Beyond that, a “substantiated cosmetic use” for CBD products could go a long way in reducing the odds the FDA will object to these products – and possibly even reduce the risk of product liability litigation. It establishes a legitimate, legal reason for CBD to be included in makeup and cosmetic products.

Certain provisions of MOCRA don’t go into effect until the end of next year, and we expect there will be some state-level rules developed in the meantime.

If you have questions about how to make sure your production, record-keeping, registration, reporting, and sales of CBD products are aligned with state and federal rules, contact an experienced cannabis business lawyer for insight.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Modernization of Cosmetics Regulation Act of 2022, March 27, 2023, U.S. Food & Drug Administration

But what will it mean for the CBD side of things when/if marijuana products of all (or at least higher) THC levels becomes legal? Specifically, we’re talking about legalization of recreational marijuana. Here in California, as well as in 17 other states, Washington, D.C. and Guam, that’s already the reality. Yet CBD businesses continue not only to operate, but to thrive.

Our CBD business lawyers recognize the retail landscape may inevitably shift once recreational marijuana becomes legal, but we also believe in the strong likelihood the two can co-exist. Not everyone wants high-THC products – specifically in the realm of pet products, beauty topicals, and cosmetics. Plus, there are a fair number of people who aren’t heavy users of THC, but may still want to indulge occasionally in a way that is safe.

Recent analysis reveal that the legal recreational marijuana market dwarfs the CBD market – $50 billion to $8 billion. Still, neither sector’s size is anything to sneeze at.

In shops that sell high-THC cannabis products, CBD product sales have fallen in recent years (at least so far as California goes). But it’s our theory that when adult use recreational marijuana becomes legal, there will be an increase in sales for both – particularly in mature markets.

The question is how the merge will occur: Will we be more likely to see low-THC products in marijuana stores primarily selling high-THC products – or visa versa. Even if high-THC retailers are the ones to thrive, it’s likely to be CBD retailers who excel in digital sales.

Beyond this: What will be the role of any dispensary when/if marijuana becomes legal at the federal level? Would anyone go to a dispensary if they could purchase quality CBD or cannabis at a gas station? It’s true that cannabis-specific retailing is hyper-centralized as a result of regulation, but our thinking is that there would still be a need for CBD and cannabis dispensaries – just as sales of alcohol have continued at liquor stores and wineries.

Cannabis companies of all stripes may want to start thinking of ways to protect their future by investing in brand development. This approach would include:

• Diversifying product offerings.
• Carving a name for yourself in the customer service sphere.
• Providing valuable education to new and existing customers.
• Offer a premium quality product.

Think about it like pizza. It’s easy enough to make, and you can find a pizza joint in virtually any city in America – not to mention in the grocer’s freezer section. But quality pizza? Wood-fired pizza? Premium ingredients? An Italian dining experience? These are all things that people seek out – and it’s how some restaurants have managed to differentiate themselves, even in crowded markets. You build up your brand value, brand loyalty, and brand base. This is true for both CBD and high-THC retailers.

Every step of the way, it will be crucial for companies to consider the legality of their branding, their business practices, and their growth. Our dedicated Los Angeles CBD lawyers are here to help.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

As more states legalize marijuana, CBD retailers face an identity crisis, April 29, 2022, By Kristen Nichols, Hemp Editor, Marijuana Business Daily

As our Los Angeles CBD business attorneys can explain, the key points in the emergency action are as follows:

• Hemp product manufacturers will be granted different types of registrations, licenses, and/or authorizations from the CDPH, depending on the type of product they make. Those that make many different types of hemp/CBD products may need numerous registrations.
• Out-of-state hemp/CBD manufacturers that want to import products to California will need to register with the CDPH.
• “Enrollment and oversight authorization” is required at each location, lasts one year, and cannot be transferred.
• Applicants requesting oversight authorization must provide detained information about not only the type of product, but its sources, extract methods, etc. These must be signed under penalty of perjury.
• Fees are based on gross revenue accrued in the 12 months prior. New applicants will need to estimate their fees, and the formulas for calculating them are a bit complex. The fee structures for CBD product types and extract manufacturers are different.

These are just the primary points of the emergency action. It’s imperative that anyone in the CBD business or hemp business in California consult with their business attorney to make sure all registration, oversight, and licensure paperwork is properly drafted and timely submitted.

We expect that there will soon be more in-depth regulatory guidelines issued for things like advertising and marketing, as well as consumer sales. But the promising takeaway for CBD manufacturers – despite coming four years after the passage of the 2018 Farm Bill – we finally have some movement on this front in California.

In addition to establishing a registration requirement for manufacturers of hemp products, AB-45 requires independent laboratory testing of hemp extracts in its final raw form, to ensure it doesn’t exceed the maximum allowable amount of THC, as well as to make sure the product is uncontaminated. Further, hemp products that are food, beverages, or dietary supplements will require:

• Labels with a scannable barcode, website URL, or QR code linking that will provide analysis certificates showing each batch’s THC content.
• Expiration and best-by dates.
• Statements stipulating that children and pregnant/breastfeeding people should avoid using the product without talking to a doctor.
• A statement saying the product should be kept out of children’s reach.
• Statement indicating the FDA hasn’t evaluated the product for either safety or efficacy.

The emergency action by the CDPH is currently awaiting a 30-day public comment period. Any CBD or hemp product maker should be reaching out to their legal department/contracted attorney to discuss the appropriate next steps to ensure their operations are properly aligned with the law.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

DPH-22-002E Industrial Hemp Fee, April 25, 2022, California Department of Public Health

Although states weren’t given a strict deadline for submission of their own plans, it was noted in USDA interim rules that previous federal statute governing cultivation of hemp (the 2014 Farm Bill) expires at the end of October. That means hemp industry insiders in states that don’t turn in their hemp cultivation and production plans prior to Oct. 31, 2020 may have issues if their practices are not consistent with federal law.

As a longtime Los Angeles CBD lawyer, I have been closely watching these developments in California. In 2019, state lawmakers passed SB-153, a measure that required the state’s attorney general and department of food and agriculture to team up and put forth a hemp production plan to the federal agriculture department by no later than May 2020. However, that did not happen. According to the USDA, the feds are still waiting on California’s plan.

The California Department of Food and Agriculture reports that the state is “in the process of developing a state plan.” The agency further asserts that for this reason,growers of hemp in California aren’t subject to federal hemp-growing rules. However, hemp growers in states that don’t have a regulatory plan that has been approved or is pending can apply for a hemp production license from the USADA. The state department says that while its regulatory plan for hemp growing and production was finished prior to the May deadline, the law necessitates it be submitted, reviewed and approved by both the state attorney general’s office and the governor’s office. That is what the agency’s waiting on right now, and the plan has (understandably) been dealing with much else in the midst of the pandemic.

That sort of leaves the state’s hemp industry in limbo. When the 2014 Farm Bill expires, hemp cultivators in California may need to apply for federal licensing. Consulting with an experienced Los Angeles hemp cultivation attorney is a smart idea to ensure you are ahead of the curve no matter how this unfolds. It should be noted that regardless of any federal requirements, all hemp growers in this state must comply with existing California laws and regulations, as well as any applicable local restrictions.

Currently, there are no state law restrictions specific to the importation of industrial hemp seeds and plants into the state, though imports may be subject to agricultural inspection. However, if you’re importing seeds internationally, that is restricted by the USDA’s list of requirements.

As far as transport of hemp, oil, seed, fiber, cake or any compound of hemp, registrants should have ready an original report of the lab testing. Drivers are also subject to local law enforcement and state DMV rules.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

California Industrial Hemp Program, FAQ, California Department of Food and Agriculture

Why Cannabis Companies, CBD Corporations Use Arbitration Agreements

As our Los Angeles corporate CBD lawyers can explain, many cannabis company contracts contain arbitration clauses. Some examples include sales contracts, operating agreements, employment contracts and intellectual property licenses. Dispute resolution should never be an afterthought, so this provision is important.

Arbitration is used in lieu of pursuing the case in court. There is no judge or jury in arbitration. Both parties instead pay an arbitration company or private arbitrator (usually an attorney or former judge) or arbitration panel to preside. Arbitrators don’t represent either side. They’re neutral third parties who hear both sides and then reach a resolution. That can involve damage awards, requiring one party to pay the other.

Arbitration Award Against CBD Distributor Upheld

The question at issue before the Eleventh Circuit in Earth Science Tech, Inc. v. Impact UA, Inc. was whether an arbitration award against a CBD distributor in favor of an international supplier could be enforced. It involved a Florida CBD products distributor and an El Salvador hemp-based product supplier. The two businesses signed a distribution agreement that gave the Florida company exclusive rights to market, sell and distribute the international supplier’s CBD oil in the U.S. The companies would then split the profits.

There was an arbitration clause in the distribution agreement indicating both agreed New York law would apply and if a dispute arose, they would resolve it with arbitration using a specific arbitration firm.

However, the business relationship went south within just a few months, with the supplier, demanding arbitration, accusing the distributor of breach of contract, tortious interference and conversion. The distributor instead filed a state court lawsuit. It was later removed to federal court, but the matter was put on hold pending the outcome of the arbitration.

The case went before an arbitration panel, which awarded the supplier nearly $4 million (mostly on the tortious interference claims). The supplier then asked the federal district court to confirm that award.

The distributor sought to either vacate or modify it, argued the tort claim should never have been subject to arbitration and asserted the award couldn’t be affirmed because it wasn’t consistent with the U.S. Controlled Substances Act.

The court disagreed, siding with the supplier. The distributor appealed, but the Eleventh Circuit affirmed.

Why the Court Rejected CBD Distributor’s Arguments

On the question of whether tort claims were subject to arbitration, the court pointed to the applicability of the Panama Convention, which spells out arbitration rules for how commercial disputes involving the companies in the U.S. and most of Latin America should be resolved. (There are several potentially applicable conventions in these cases, depending on the location of the international company involved.) Provisions of that law allowed for arbitration on the tort claim. But even if they didn’t, the CBD distributor forfeited its right to dispute the award because it agreed – as did the supplier – to submit that issue to the arbitrator.

On the issue of modification, the only grounds distributor would have had to make this argument were that there was an evidence miscalculation. The court quickly determined there was not.

As for the argument of the award’s inconsistency with the U.S. Controlled Substances Act, the distributor argued that when the contract (to which it was a party) was signed six years ago, federal law prohibited the sales of any THC-containing product – including CBD. If the court affirmed the award, the distributor argued, they would be enforcing a contract whose subject was illegal under federal law.

No, the court answered. The distributor bore the burden of proof to establish the subject of the contract was illegal, and its own website stated at the time that its products were federally legal “everywhere in the USA.” The appellate court said it wouldn’t assume the distributor was flagrantly advertising products as legal if they believed them to be illegal. The court further cited the 2018 Farm Bill that removed hemp and hemp-derived CBD from the Controlled Substances Act. Even if the product was illegal then, it isn’t now.

That decision doesn’t set any binding precedent within that circuit, let alone the Ninth Circuit, which oversees cases in California. However, it may prove persuasive to sister courts if similar cases regarding international contracts involving sales of CBD and hemp arise.

Bottom line for California hemp and CBD businesses:

• Talk to an experienced Los Angeles CBD lawyer before entering an agreement with any international firm so you know exactly what rules are gong to apply.
• If you are involved in arbitration with an international firm, you need to be sure you know which convention applies so you can make a strong argument.
• If you had a hemp-CBD business contract that was signed prior to the passage of the 2018 Farm Bill, it’s unlikely you’ll be able to challenge the validity of it on the grounds the subject is unlawful. You might consider, nonetheless, having your attorney review it.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Earth Science Tech, Inc. v. Impact UA, Inc. , April 14, 2020, U.S. Court of Appeals for the Eleventh Circuit

Some have gone on record to endorse their favorite brands of CBD oils and products, joining dozens of A-list celebrities who do the same.

This has resulted in Los Angeles cannabis advertising lawyers being asked whether these endorsements violate state or federal advertising laws.

Truth is, this is still a relatively new area of law, which is why each party should consult with an attorney before soliciting, offering or publishing a CBD advertisement or endorsement.

Do’s and Don’ts of California CBD Advertising

The promotion of CBD products raises some complex issues.

Hemp-based CBD products were removed from the U.S. Drug Enforcement Administration’s list of scheduled substances with the passage of the 2018 U.S. Farm Bill. While the Farm Bill essentially legalized hemp-derived CBD oils with less than 0.3 percent THC content, it still requires that there be a regulatory framework in the state where it’s being sold – and not all states have caught up yet. Sales and marketing of CBD products has largely been overseen by a patchwork of state and local rules, and enforcement has been spotty.

Meanwhile, the U.S. Food and Drug Administration has reiterated numerous times that CBD cannot be added to food, dietary supplements or medications except for approved purposes – and as of right now, that’s only a few. Companies should be extremely wary about having athletes pitching the health benefits of CBD products that haven’t yet been approved by the FDA for that express purpose. (In fact, some have feared that efforts of cannabis companies to go mainstream could be hampered by CBD advertising claims that are untrue, unproven or misleading.)

Meanwhile, Facebook and Google have their own regulations about advertisement of any cannabis product.

A cannabis attorney can help advise you on the finer points. Advertising and marketing restrictions pertaining to cannabis products in California is outlined in state Business and Professional Code.

In general, athletes, celebrities, influencers and cannabis companies should:

• Know the state’s regulations.
• Make sure that the CBD product in question is hemp-derived, not marijuana-derived. (If it is marijuana-derived, meaning it contains more than 0.3 percent THC, there may be additional advertising rules they need to observe.)
• Be certain there is evidence to support any health and/or medical claims about the product.
• Avoid any advertising that shows consumption of the product.
• Agree to exclusionary zones that will restrict advertising visible to minors (near schools, public playgrounds, places of worship, etc.).

Questions about specific advertising campaigns should be directed to an experienced marijuana advertising lawyer.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Ads Pitching CBD as a Cure-All Are Everywhere. Oversight Hasn’t Kept Up. Aug. 13, 2019, By Tiffany Hsu, The New York Times Meet the Pro Athletes Advocating for CBD, March 29, 2019, By Stacey Leasca, Men’s Health Magazine

The U.S. Food and Drug Administration had already assumed the position that the substance could not lawfully be sold in food. Now, the agency has released a sharply-worded warning to the public about the possible dangers of CBD and issued notices to more than a dozen large companies that sell it, citing alleged violations of the U.S. Food, Drug and Cosmetics Act. Five of those companies are in California and one is in Los Angeles. Similar warning letters had been sent to other companies.

They are accused of unlawfully selling CBD products interstate for purposes claiming to prevent, treat, diagnose, mitigate or cure disease of a serious nature, like cancer. Some were a double violation because they were included in food products and/or advertised as being dietary supplements. The FDA press release on the warning letters noted that regulators haven’t approved any CBD products, save for those issued by prescription to treat certain rare forms of pediatric epilepsy. Even then, the agency notes that CBD might cause liver injury, but have determined the benefits of treatment outweigh the potential health concerns.

The agency cited lack of information on the health effects – adverse or otherwise. The products being sold, the FDA explained, most likely differ substantially from the single FDA-approved medication. The lack of scientific information, officials said, means the agency cannot say the substance will be effective in treating what sellers claim it does, and worse, it might be dangerous. CBD is not classified as “generally recognized as safe” for human or animal use.

Some outstanding questions yet to be answered, the FDA indicates, include:

• What are the effects of daily CBD use for sustained periods?
• What effect does CBD have on the developing brains of children and teens?
• Is there an adverse impact to pregnant women or nursing mothers?
• What kind of interactions does CBD have with other herbs or substances?

It’s not that these are bad questions, but the frustrating aspect for our Los Angeles CBD lawyers is the fact that they’d likely have long ago been answered if it wasn’t for more than eight decades of nonsensical prohibition.

In a revised Consumer Update, the agency has outlined a number of potential safety concerns related to CBD use. In addition to possible liver damage, the agency has concerns regarding:

• Drowsiness
• Diarrhea
• Mood swings
• Decreased testosterone levels/development and function of testes and sperm

FDA Promises Its Continued Exploration of Legal CBD Sales

The warning doesn’t completely close the door on CBD sales. The FDA insists it is continuing to explore ways that CBD might be safely produced and legally marketed. Officials are meeting with stakeholders, health officials and researchers to glean more knowledge about the science, safety and quality of these products.

The agency said an update on its progress should be issued in the coming weeks.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

FDA warns 15 companies for illegally selling various products containing cannabidiol as agency details safety concerns, Nov. 25, 2019, FDA

We can thank the lack of clear federal banking law and the reticence of financial institutions. Worse is that ramping up access to these critical business services appears to be happening in fits-and-starts.

This regulatory gray area has caused all kinds of headaches. CBD companies will have access to things like processing of credit card processing one day and the next, the institution has changed its mind, leading to a host of practical problems for businesses in terms of customer satisfaction but also just practically tracking expenses.

Baking Confusion Over Hemp, CBD

Recently, the American Bankers Association (ABA) submitted correspondence to federal regulatory agencies overseeing finance to request additional clarification on when/how banks can service businesses that sell hemp and hemp-derived CBD products.

In the association’s letter, it was stated that financial institutions want to serve legal businesses in support of local economies, but require more unequivocally clear direction and assurance from the federal government that hemp and CBD businesses are distinguished from cannabis companies under federal law. Otherwise, they fear they may be subject to harsh penalties under civil and and criminal law as well as regulatory sanctions.

The letter further sought confirmation that CBD and hemp are no longer deemed controlled substances under the law for purposes of requiring financial institutions to file suspicious activity reports, as they are required to do if/when servicing businesses that sell cannabis and related products.

It should be noted that both Sens. Ron Wyden, D-Oregon and Mitch McConnell, R-Kentucky, submitted letters to four major federal banking agencies asking that they open the door to financing and processing services for hemp and CBD businesses.

The senators sent those letters to the Office of the Comptroller of the Currency as well as the Farm Credit Administration, the Federal Reserve System and the U.S. Federal Deposit Insurance Corp. (better known as the FDIC). In their letters, Wyden and McConnell underscored that hemp was legal post-2018 Farm Bill. They specifically sought guidance from these agencies, urging them to help ease whatever concerns banks and other financial services providers may have in catering to hemp farmers, CBD product manufacturers and sellers. They stated point-blank that hemp and CBD companies are to receive equal treatment and that discrimination against them is not the intention of the legislature in passing the 2018 Farm Bill.

Although the FDIC has yet to respond directly to these letters, the agency head did tell members of the U.S. House and Financial Services Committee last month that it is conducting extensive training and that examiners with banks should know understand that hemp and its derivatives are legal and thus purveyors should have access to banking services.

Additionally, as our Los Angeles CBD business attorneys can explain, a memo from 2014 from the FinCEN reportedly already sets forth a guideline for how banks can serve BOTH marijuana and hemp clients (if and when the products became legal).

Hemp and CBD Entrepreneurs Feel Unfairly Jilted

Numerous hemp and CBD companies in California and throughout the U.S. say their understanding was that with the 2018 Farm Bill passed, they’d be able to sale through the regulatory and banking process necessary to truly get operations off the ground. That hasn’t happened.

In fact, some even report being instructed to lie on their applications in order to get them approved. This is almost never recommended. Before taking any such measure (which could result in both criminal and civil penalties) we recommend a thorough discussion with an experienced Los Angeles CBD business lawyer.

We understand that the inability to access banking services for many means they are stuck, unable to truly launch their businesses, sometimes with thousands of dollars of hemp and CBD products at risk of expiration.

CBD companies facing some of the most significant challenges are those that sell their products online through e-commerce. Fast and efficient e-commerce requires online payment processing. Most medical marijuana dispensaries that sell cannabis and CBD allow the products to be ordered online, but payment is processed in-person to delivery personnel – and in-cash.

But considering CBD and hemp at least are now legal under federal law, there is no reason for this, and it puts businesses that choose to be above-board at a significant disadvantage.

Business owners that sell hemp and the CBD derived from it say they are grateful for the additional input in stressing the legality of their products, but are frustrated that so many banking institutions continue to drag their feet on this critical issue.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Acknowledging hemp ‘uncertainty,’ FDIC chief says banking rules sufficient, May 20, 2019, Hemp Industry Daily

]]> https://www.los-angeles-marijuana-lawyer.com/blog/when-grandmas-cbd-oil-has-her-in-handcuffs-on-drug-charges/ https://www.los-angeles-marijuana-lawyer.com/blog/when-grandmas-cbd-oil-has-her-in-handcuffs-on-drug-charges/ Mon, 10 Jun 2019 01:02:06 GMT California CBD lawyers have become aware of an increasingly concerning trend of arresting people for possession of CBD oil, a low-THC extract of cannabis used in a variety of health applications, often to help treat pain associated with arthritis, cancer and back injuries. As it happens, many who suffer from these ailments are in the…

]]> California CBD lawyers have become aware of an increasingly concerning trend of arresting people for possession of CBD oil, a low-THC extract of cannabis used in a variety of health applications, often to help treat pain associated with arthritis, cancer and back injuries. As it happens, many who suffer from these ailments are in the in the over-50 crowd, and are seeking CBD treatment.

The AARP reported early last year seniors comprise 36 percent of medical marijuana registries, and many preferred CBD (cannabidiol), which does not get a user high, to its psychoactive cousin, marijuana.

The good news is CBD oil has been removed from the U.S. Controlled Substances list with the 2018 Farm Bill (it, along with the hemp from which it’s derived, used to be classified as a Schedule I alongside marijuana), CBD has become increasingly more popular. (It is not approved for food and beverages, per the FDA.)

But there are states – California for instance – that still retain stringent regulation on CBD. There remains confusion about what is/isn’t legal, and people are still finding themselves the subject of law enforcement investigations when it’s found in their possession.

Treated as a Criminal for CBD Possession

Recently, a 69-year-old great-grandmother from North Carolina was arrested for CBD possession at Disney World in Florida following a check of her purse in which a security guard discovered in her purse a small amount of CBD oil. Rather than simply returning the oil to the woman’s purse and allowing her inside the park, the guard called for backup from the local sheriff’s office.

The grandmother spent 12 hours in jail (rather than the day at the amusement park with her family as intended), but prosecutors ultimately declined to press charges for cannabis possession, noting the case was “not suitable” for continued pursuit.

The woman has since hired a cannabis civil rights attorney, and is expected to file a civil rights lawsuit against the park. If the case is settled, we likely won’t know the terms, and the theme park and county will be able to eschew any kind of wrongdoing – officially.

But cannabis and CBD lawyers in Los Angeles hope whatever the outcome here, it sets the tone for greater caution among law enforcement and other officials in terms of how to treat possession of CBD oil, over which there still seems to be a great deal of confusion.

Where CBD Law Stands in California

Although California has reputation for lax attitudes when it comes to use of cannabis (having been the first to legalize medicinal marijuana and among the first handful to legalize recreational marijuana) the reality is we have some of the more stringent regulations when it come to CBD oil.

Yet even as the federal government is lowering barriers to obtain hemp products with less than 0.03 percent THC, California appears to be moving in the other direction with regard to CBD.

For example, the California Department of Health still insists that hemp-derived CBD is unlawful per state statute – and has even gone so far as to initiate raids on companies that manufacture or warehouse CBD oil and related products. The DOH also insists CBD products are not legal for infusion in food and beverages, so long as the FDA prohibits it.

There are also concerns that if a CBD product fails to exactly meet that 0.03 percent threshold – even if it’s off by the tiniest percentage point – that everyone within the supply chain face serious consequences – including criminal charges. That’s happening even without testing of the drug. In Oklahoma, Idaho, Ohio, Nebraska, Louisiana, Texas, North Carolina – people are facing felony drug-trafficking charges for CBD possession (truck drivers in particular appear to be vulnerable) – and this is all after the 2018 Farm Bill passed.

Much of this has to do with the fact that we have such a confusing patchwork of state laws and local rules, not to mention the conflict with federal government. Even within a single state, the laws can vary widely (a prosecutor in one jurisdiction declines to prosecute, but another aggressively pursues it).

One comforting exception is the stated policy of LAX Airport, which allows possession of marijuana and CBD for travelers who are least 21, so long as those amounts are within the statutory-legal amount.

For seniors who may have questions about the legality of purchasing or possessing CBD oil or inquiries for criminal defense on charges of CBD possession, our dedicated marijuana lawyers can help.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Hey, Officer! Stop Arresting Grandma for Her CBD Oil, May 15, 2019, By Bruce Barcott, Leafly.com

]]> https://www.los-angeles-marijuana-lawyer.com/blog/california-cannabis-companies-hungry-for-launch-cbd-food-supplement-sales/ https://www.los-angeles-marijuana-lawyer.com/blog/california-cannabis-companies-hungry-for-launch-cbd-food-supplement-sales/ Mon, 20 May 2019 14:18:19 GMT Cannabis stores in California are clearing the shelf space for CBD-infused food and supplements, in preparation approval of Assembly Bill 228, which requires a two-thirds state Senate majority after passing in the House earlier this month. However, Los Angeles cannabis law firm attorneys urge reefer retailers to exercise caution. It’s unclear whether removing the state…

]]> Cannabis stores in California are clearing the shelf space for CBD-infused food and supplements, in preparation approval of Assembly Bill 228, which requires a two-thirds state Senate majority after passing in the House earlier this month.

However, Los Angeles cannabis law firm attorneys urge reefer retailers to exercise caution. It’s unclear whether removing the state level ban would mean companies are legally in the clear to manufacture/sell CBD-infused products and supplements so long as the U.S. Food & Drug Administration has made it clear that such sales are illegal under federal law. The agency is reportedly reconsidering this stance amid intense pressure from the cannabis industry, but thusfar, there has been no shift in policy.

At issue are hemp-derived CBD (cannabidiol), a non-psychoactive extract of the hemp plant, which is a type of cannabis that contains less than 0.03 percent THC (tetrohydrocannabidiol), the cannabis plant extract that gives users a high. The historic 2018 U.S. Farm Bill formally differentiated hemp from its cannabis cousin, marijuana, opening the door for a host of cannabis-derived products, from textiles to beauty products.

Yet even as purveyors of Southern California food and beverages in states where recreational marijuana is legal infuse THC-laden products into everything from pizza and beer to candies and chips, they haven’t technically been allowed under either state or federal law to do the same with CBD.

Current CBD Food Sales Don’t Comply With State, Federal Regulations

This of course seems entirely nonsensical, given that CBD objectively poses less serious health or safety risk than marijuana use – which is saying something considering marijuana is generally considered pretty safe for use by adults. Unlike opioids or cocaine, overdoses are virtually a non-issue (with disputes on cause even when they do occur). The biggest problems are those arising from impaired driving and, on rare occasions, impaired workers.

Indeed, many were surprised at the sudden crackdown on CBD food and beverage sales last year by the California Department of Public Health, which via memo insisted hemp-derived CBD products were banned as a food additive per FDA guidelines

The bill addresses the surprise crackdown by the California Department of Public Health (CDPH), which asserted authority over food sales and stipulated in a memo last July that California prohibits hemp-derived CBD from being added to foods.

Those selling THC-infused culinary and drink items are still technically flouting federal law, as the drug retains its classification as a Schedule I narcotic. The current White House Administration’s U.S. Justice Department continues to adhere to the directive set forth in The Cole Memo, which in 2013, after years of incessant raids on the legal marijuana dispensaries, collectives, doctors and patients, instructed federal prosecutors to eschew pursuit of marijuana organizations and businesses abiding state law where the drug is legal.

What AB 228 Would Mean for CBD Sales in California

Given the dizzying pace of changing marijuana law and policy, cannabis entrepreneurs and ancillary companies need to understand exactly what federal, state and local rules. Working with an experienced cannabis law firm will help ensure you’re up-to-speed and knowledgeable on compliance. Our team of dedicated CBD lawyers will keep your firm abreast of the latest and prepare you for the launch of CBD food, drink and supplement sales so you’re ready well in advance.

It does seem we’re moving closer to that reality, given the state assembly’s unanimous approval of the bill, reflecting broad support.

The law would allow sales of food, beverages and cosmetics infused with CBD extracts and further would prohibit local restrictions on these sales (which is not the case for recreational marijuana).

Still, some have expressed skepticism the state senate will follow suit, given the FDA’s continued hard-line stance against such sales, at least for now. If they do move forward on AB 228, it’s expected California Gov. Gavin Newsom will sign it and the law would go into effect right away.

But again, until the FDA shifts its stance – bringing with it the state health department – cannabis firms would be wise to tread carefully. It’s unlikely larger, national chains will make moves toward investment or sales at least until that point.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

California Poised to Remove Prohibition on Hemp-Derived CBD in Foods and Supplements, May 20, 2019, National Law Review

]]> https://www.los-angeles-marijuana-lawyer.com/blog/feds-officially-ban-cbd-in-alcoholic-beverages-l-a-cbd-lawyers-warn/ https://www.los-angeles-marijuana-lawyer.com/blog/feds-officially-ban-cbd-in-alcoholic-beverages-l-a-cbd-lawyers-warn/ Sat, 11 May 2019 18:34:54 GMT Although hemp and CBD are no longer on the U.S Controlled Substances list, thanks to the 2019 Farm Bill, there are still regulatory agencies that can impose stringent restrictions on their use. L.A. CBD lawyers have been closely monitoring the evolution of federal policy and statutes pertaining to application of legal sales, in particular infusion…

]]> Although hemp and CBD are no longer on the U.S Controlled Substances list, thanks to the 2019 Farm Bill, there are still regulatory agencies that can impose stringent restrictions on their use. L.A. CBD lawyers have been closely monitoring the evolution of federal policy and statutes pertaining to application of legal sales, in particular infusion of food and beverage products made from hemp-derived CBD.

In April, the U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) made clear that CBD made with hemp can’t be lawfully added to alcoholic drinks.

In response to a flood of inquiries submitted by L.A. CBD lawyers and other interested parties, the TTB made clear that while CBD and hemp are now federally legalized, that legality doesn’t pertain to alcohol.

Review of Existing Guidelines Means CBD Drink Rule Could Change

Whether this rule sticks is questionable. After all, CBD, short for cannabidiol, doesn’t have psychoactive properties because the active-compound THC appears at trace levels – if at all – in CBD consumer products. That means it isn’t likely to compound someone’s level of intoxication if consumed in conjunction with alcohol. But TTB officials aren’t keen on relaxing their rules – at least yet – especially so long as the U.S. Food & Drug Administration’s rules on CBD infusion to wine, beer and liquor remains firm.

For its part, the FDA has stated repeatedly and unequivocally that CBD derived from hemp can’t be legally legally marketed in food products. However, officials with that agency also have said they are looking at potential pathways to changing that rule to.

In a released statement following a consult with FDA regulators, the TTB indicated that any alcohol products infused with CBD will be rejected. However, the agency included a caveat that it will continue to process applications products containing hemp seed and hemp seed oil, and that applications for CBD-infused alcohol would be reconsidered if policy changes.

Manufacturers and distributors wishing to market alcohol products with hemp derivatives, even those allowable under the law, they first need to submit a laboratory analysis of the ingredients therein to be sure they don’t contain any controlled substances barred for such purposes.

The agency has been engaged in ongoing consultation with the U.S. Drug Enforcement Administration on the issue as needed. L.A. CBD lawyers caution anyone selling these products to consult with an attorney first, most especially if sales are occurring across state lines.

CBD Lawyers Note Food and Drink Product Marketing Continues

Despite these rules, our L.A. CBD lawyers note that dispensaries, restaurants and other retailers continue to market food and drink items with CBD. At this point, we haven’t noticed any significant uptick in CBD enforcement action in California. However, CBS reported in February that states like New York, Maine, Ohio and North Carolina are committing to hard-line action against CBD products that fail to meet the letter of the law. As far as federal CBD enforcement action is concerned, the FDA has indicated it is prioritizing its resources to target companies that make unfounded or exaggerated claims regarding the health gains of CBD products. The Los Angeles CANNABIS LAW Group represents growers, CBD dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Federal Agency Clarifies Rules On Adding CBD To Alcoholic Beverages, May 6, 2019, Marijuana Moment

More Blog Entries:

Criminal Charges for CBD? Confusion Copious Over State, Federal Laws, May 1, 2019, L.A. CBD Lawyer Blog

]]> https://www.los-angeles-marijuana-lawyer.com/blog/criminal-charges-for-cbd-confusion-copious-over-state-federal-laws/ https://www.los-angeles-marijuana-lawyer.com/blog/criminal-charges-for-cbd-confusion-copious-over-state-federal-laws/ Wed, 01 May 2019 23:17:53 GMT Stores throughout Southern California, in Los Angeles, Riverside, Orange County and beyond, are ramping up advertising to promote sales of CBD oil, but questions of legality persist: Who can sell it and how and whether it can be sold at all. People across the country mistakenly presumed that the 2018 Farm Bill effectively opened the…

]]> Stores throughout Southern California, in Los Angeles, Riverside, Orange County and beyond, are ramping up advertising to promote sales of CBD oil, but questions of legality persist: Who can sell it and how and whether it can be sold at all.

People across the country mistakenly presumed that the 2018 Farm Bill effectively opened the doors to all CBD sales. In fact, that is not the case, and small businesses are learning this the hard way when their shops are raided and product confiscated. Some are even facing criminal charges.

Hemp-derived CBD is now legal under federal law, but not for all purposes. Further, state law has yet to catch up, and police/prosecutors have yet to neatly map their approach with yet another federal-state legal conflict on marijuana law.

As CBD popularity has booming, businesses will want to check in with an attorney experienced in marijuana and CBD law in California to ensure they aren’t properly producing, selling or advertising CBD in a way that could jeopardize their livelihood and even their freedom.

CBD Won’t Get You High, But it Could Get You Into Trouble

For those unfamiliar, cannabidiol is one of more than 100 extracts that can be derived from the marijuana plant or from hemp. Unlike the element that contains THC, it does not cause intoxication in a person. (Some CBD products do produce a mild high, but only because they have low-concentration THC.)

Even though CBD is not psychoactive, it purportedly does contain a number of medicinal properties, and has been recommended by physicians to those with medical marijuana cards for years to alleviate ailments from anxiety to rheumatoid arthritis to menstrual cramps. It’s described as having a calm, soothing effect that makes it desirable for everything from bath bombs to smoothies to candy.

As ridiculous as the Schedule I classification under the U.S. Controlled Substances Act is for cannabis, it makes even less sense for CBD. Schedule I substances are the most highly addictive, medically worthless and dangerous. The U.S. Drug Enforcement Administration did finally bump CBD from a Schedule I to a Schedule V narcotic (the least harmful of controlled substances). The 2018 Farm Bill legalized hemp, from which CBD can be derived, and CBD was expressly desheduled, assuming the product contains very low THC.

Still, shops selling CBD – especially while claiming medicinal qualities, as a food or drink item and even as a cosmetic – need to be especially cautious.

Riverside CBD business lawyers are aware of recent cases in states like Texas wherein authorities burst in, seized all CBD products, cash and even employees’ personal cell phones as part of their investigations into alleged unlawful CBD sales.

Under the 2018 Farm Bill, CBD oil is only legal if derived from the hemp plant and if it contains less than 0.3 percent THC. However, most states haven’t updated their rules with regard to CBD, and cannabis attorneys know it’s become something of a mess.

CBD Online Sales and Other Points of Confusion

Many police across the country are struggling what to do with the soaring proliferation of CBD oil and state laws that say it’s illegal and prosecutors who have already vowed to back off prosecuting all low-level, non-violent marijuana/cannabis cases.

Even if you live in a state like California that has legalized marijuana for recreation, there are few rules in place with regard to CBD. It’s legal under federal law now, but not if being sold as a medicine or a food, per the U.S. Food & Drug Administration.

But then some states (namely, Michigan) defied this too by allowing CBD be offered in alcoholic drinks.

On top of that, individual municipalities have been given a great deal of freedom to determine what sort of rules and restrictions they want to impose, leaving many cannabis consumers in the dark.

Because of this complex patchwork of evolving laws, we recommend all businesses selling CBD in California consult with an experienced attorney knowledgeable about how to protect your assets.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

CBD Is Wildly Popular. Disputes Over Its Legality Are a Growing Source of Tension, By Timothy Williams, The New York Times

More Blog Entries:

Report: Some Cannabis Cash Used to Compel California Corruption, March 16, 2019, Los Angeles CBD Lawyer Blog

]]> https://www.los-angeles-marijuana-lawyer.com/blog/traveling-with-cbd-california-cbd-lawyers-discuss-your-rights/ https://www.los-angeles-marijuana-lawyer.com/blog/traveling-with-cbd-california-cbd-lawyers-discuss-your-rights/ Tue, 23 Apr 2019 22:03:31 GMT If you’re traveling within California via airplane, your safe to bring your personal CBD and marijuana supply without significant concern of criminal penalties (assuming you’re at least 21 aren’t carrying more than one ounce of the flower/bud or eight grams of concentrates like hash or oil, per Prop 64). Even after marijuana and CBD became…

]]> If you’re traveling within California via airplane, your safe to bring your personal CBD and marijuana supply without significant concern of criminal penalties (assuming you’re at least 21 aren’t carrying more than one ounce of the flower/bud or eight grams of concentrates like hash or oil, per Prop 64).

Even after marijuana and CBD became legal for recreational use among adults in California, Los Angeles CBD attorneys would not have advised clients to take their stash to the skies. Over the last several months as federal laws have eased and state regulatory framework came together, airports like LAX began announcing last year they would allow in-state travelers to pack CBD and marijuana in personal carry-ons as long as it was state-law compliant.

However, travelers – especially those with marijuana, hash or other concentrates – still have reason to be cautious. While state and local officials have jurisdiction at airports through security checkpoints, federal agencies control post-security checkpoint areas.

Federal law still considers marijuana a Schedule I narcotic, subject to severe penalties. CBD oil was downgraded to a Schedule V last year (and was later descheduled by the 2018 Farm Bill). Most traveler’s bags aren’t inspected beyond security checkpoints, but it’s not impossible, especially if one is intoxicated or there is a strong odor permeating through the bag. That probably won’t be an issue with CBD, which is less aromatic than the marijuana flower.

So Can I Bring My CBD Oil to the Airport?

Up until late last year, traveling by air with CBD was probably not a great idea. TSA’s position has always been that its primary focus is safety and security. They’re looking for weapons, not your joints and tinctures. Local police handle calls of illegal contraband from TSA. But once Prop. 64 passed, the exercise became pointless.

Major airports started officially relaxing rules on cannabis last fall, indicating that as long as a traveler is 21 or older and the amounts are within statutory guidelines (no more than 8 grams of liquids like CBD). If you’re flying to another destination in California, you should be fine.

Keep in mind that technically once you’re in the sky, you’re in federal airspace. However, Los Angeles CBD lawyers see it unlikely this will be an issue.

What If I’m Leaving the State or Coming From Elsewhere

Travelers need to consider the laws at each travel point. A number of states still consider marijuana possession a fairly serious criminal offense. Wherever you fly from is where you’re screened by security, so no matter how legal it is where you’re headed, it’s the laws in your departure state that probably deserve the most consideration.

With CBD now formally a Schedule V instead of Schedule I narcotic, it doesn’t pose the same outsized risk as possession of high-THC products, but it’s not something you can wholly ignore. Consider that in Ohio recently, a man was faced felony drug charges for purchase and possession of CBD oil (in his case, to treat anxiety). The judge reduced the charge from felony to misdemeanor, citing the reduced drug classification.

If you have to go through a customs process, consider the answer will depend on that country’s federal marijuana possession laws.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

You Probably Shouldn’t Bring CBD Oil to an Airport, April 2019, The Atlantic

More Blog Entries:

Santa Cruz Sues State to Protect Local Pot Shops, City Oversight, April 10, 2019, Los Angeles CBD Lawyer Blog

]]> https://www.los-angeles-marijuana-lawyer.com/blog/new-magic-beans-jelly-belly-inventor-releases-cbd-infused-line/ https://www.los-angeles-marijuana-lawyer.com/blog/new-magic-beans-jelly-belly-inventor-releases-cbd-infused-line/ Mon, 01 Apr 2019 15:40:27 GMT The inventor of Jelly Belly jellybeans, through his new brand Spectrum Confections, now offers a line of the confection that comes infused with cannabidiol, or CBD. But whether these beans prove “magic” for the company’s sales, they definitely won’t get you as high as giant beanstalk. Los Angeles CBD business lawyers know the real question…

]]> The inventor of Jelly Belly jellybeans, through his new brand Spectrum Confections, now offers a line of the confection that comes infused with cannabidiol, or CBD. But whether these beans prove “magic” for the company’s sales, they definitely won’t get you as high as giant beanstalk. Los Angeles CBD business lawyers know the real question is whether the company will be able to legally sell them, even in states like California where marijuana is legal for recreational users.

The Skinny on CBD Food and Drinks in California

Although California regulators have deferred to the U.S. Food & Drug Administration’s hard-line stance on CBD as a food or supplement additive (underscoring the prohibition on CBD-laced foods even after the passage of the 2018 Farm Bill, which legalized industrial hemp), there are indications we could soon see a shifting tide. In February, the FDA commissioner told Congressional leaders the agency may consider eventually allowing food infusions of diluted CBD with low-THC (tetrahydrocannabidinol – the cannabis compound with psychoactive effects). There is no guarantee on when that might be, though.

A more recent amendment of AB-228 in California opened the door slightly to sales of CBD food products, so long as the CBD was hemp-derived (as opposed to cannabis-derived) and had been fully licensed and regulated throughout the California cannabis supply chain. Other states have set forth their own CBD food and drink regulations.

Although enforcement of federal regulations pertaining to CBD products hasn’t appeared to be a top priority for many agencies, that’s not to say that couldn’t change at the drop of a dime until there is formal protection under the law. That’s why any company producing or selling/marketing CBD-laced products should discuss the existing (and seemingly ever-evolving) regulations with a Los Angeles CBD business attorney.

CBD Jelly Beans Just the Latest – and Unlikely the Last

Jellybeans were widely known to be the favorite of late President Ronald Reagan, though given his strict “Just Say No” stance on all drug use, we can’t say he’d have been all that enthusiastic about the CBD-laced version in the candy dish.

On the other hand, CBD lacks the same sort of psychoactive “high” that one derives from other products containing higher levels of CBD. Plus, it has a number of purported health benefits, helping with everything from anxiety to epilepsy (the latter formally approved by the FDA). Many selling CBD-infused products for recreational users tout its relaxing effects, as well as its purported effectiveness with post-workout healing and general mental wellness.

The new line of CBD jelly beans come in an array of three dozen flavors, the sweetness masking the 10 mg of CBD contained in each one.

They also are not marketed to children. The company requires users be at least 18 to purchase them. Most children won’t have the means to purchase them anyway, as an 800-piece bag sells for $600.

Will CBD Jelly Beans Cause a Drug Test Fail?

CBE is a chemical compound that can be derived either from hemp or cannabis that can be extracted into an oil. Per the U.S. Centers for Disease Control and Prevention, it is not a compound that will make a person “high” because it impacts different nervous system parts than THC.

Genuine CBD oil should not result in a failed drug test, but there is a possibility if there is cross-contamination with THC. It’s important for individuals who need to pass a drug test for work to conduct research on the CBD product of purchase to ensure the product is pure.

The CBD jellybeans are produced not to include THC, according to the manufacturer.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

No, CBD-infused jelly beans definitely won’t get you high. Here’s why, March 18, 2019, By Eli Rosenberg, The Washington Post

More Blog Entries:

California Closer to Allowing Food Containing CBD, March 25, 2019, Los Angeles CBD Business Attorney Blog

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