MJ Biz report…
California has a reputation for heavily regulating businesses, and the marijuana industry is no exception. As of Jan. 1, a mandate requires all marijuana products to be labeled with warnings about the health dangers of both marijuana smoke and THC.
The regulation was established by Proposition 65, a 1986 state ballot initiative that requires warning labels for any product containing chemicals that might cause cancer or birth defects. Marijuana smoke and THC were added as “reproductive toxins” in 2020, and the new label requirement went into effect on New Year’s Day.
The main problem for cannabis businesses is the enforcement of Prop 65, which historically has led private attorneys and citizens to look for violations and then file suits against the companies that produced or sold the items in question. Such actions can mean costly out-of-court settlements or even more expensive litigation for businesses.
Lara DeCaro, an attorney who has represented California cannabis businesses for more than a decade, is well-acquainted with the liabilities associated with Prop 65. Marijuana Business Magazine asked DeCaro what cannabis companies can do to minimize their legal exposure.
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Violating California’s Prop 65 labeling rules can cost cannabis companies thousands in legal fees