Articles Posted in California marijuana business lawyers

Trying to predict the California cannabis market was problematic even prior to an international pandemic that threw everything off course. Part of it is that this is the largest legal marijuana market in the world. Part of it is that it’s so new, being legalized for adult recreational use just three years ago. And part of it is the industry’s ongoing and fierce competition with a huge illegal market – all while the drug is considered illegal and highly addictive by the federal government.marijuana business lawyer

That said, our Los Angeles marijuana business lawyers have been fierce defenders of those involved in cultivating, manufacturing, selling, using, prescribing and advertising marijuana for more than a decade. We have become deft at examining the trends as we advise our clients, many of whom were better off than some other businesses due to their designation by the state as “essential.”

In looking at the year ahead, our marijuana lawyers see a handful of factors that will likely impact the future of the industry and the clients we serve.

This has undoubtedly been a year of challenges for virtually all business sectors, but 2021 holds some promise for the continued growth of California’s burgeoning legal cannabis industry.Los Angeles marijuana business lawyer

Some of the trends our Los Angeles marijuana business lawyers recognize as specific to our state include:

  • More cannabis business license opportunities in Los Angeles and throughout the state.
  • Ongoing evolution of consumer preferences as well as product maturation.
  • Pressure from consumers and businesses on taxes and pricing.
  • Newly available legal finance and banking services.

Although these are mainly positive developments on the horizon, some could lead to a degree of market volatility. Still, all indicators are that California’s legal cannabis market will continue to grow by leaps and bounds. Voters in various parts of the state passed dozens of local initiatives that establish a regulatory and tax framework for new marijuana businesses to become established. That means we’re going to see more marijuana businesses set up shop. Continue reading

A key ruling in the fight to allow marijuana delivery everywhere in the state – regardless of local restrictions on marijuana retailers – was issued partially in the industry’s favor. Still, our Los Angeles marijuana business lawyers recognize it wasn’t all good news, and likely is just the beginning of what could be numerous, protracted legal battles.marijuana delivery lawyer

The Fresno County Superior Court earlier this month upheld the California law allowing licensed marijuana delivery companies to offer services anywhere in the state. Further, the ruling affirmed that while cities and counties can forbid these operations, enforcement is up to local government agencies.

What does this mean for marijuana delivery businesses? As our attorneys see it, they have one of two options:

  • Take the risk of battling with local governments trying to enforce their local bans on cannabis companies (including delivery services).
  • Cease delivery services to those areas.

Continue reading

The U.S. House of Representatives has passed a federal bill that would decriminalize marijuana at the federal level. It’s a sweeping measure that expressly strives to address racial inequality of drug law enforcement, though the impact could be much broader – that is, if it had a realistic shot at passing in the Senate. Our Los Angeles marijuana lawyers and most Washington insiders agree the bill is likely to falter in the Senate. Los Angeles marijuana lawyer

The Marijuana Opportunity Reinvestment and Expungement Act (or MORE Act) would remove cannabis from the list of U.S. controlled substances. It would also expunge lower-level federal marijuana arrests and convictions and provide incentives for minority-owned cannabis businesses in a market that has been expanding rapidly in recent years – not just in California, but throughout the country. Additionally, it would establish an excise tax on marijuana sales, allowing that money to be funneled into areas that were particularly hard-hit by the failed war on drugs.

The measure was largely approved along party lines, though five Republican representatives and one independent joined Democrats in passing the bill. Half a dozen Democrats voted against it. NPR quoted the bill’s sponsor as saying federal action on the issue is an imperative, given that the majority of states plus Washington, D.C. have recognized medical cannabis as legal and 15 allow its sale and possession for adult recreational use. Those who voted in favor of the bill say it is long overdue, particularly as so many of the arrest and sentencing laws have placed an unfair burden on minority and low-income communities. Research conducted by the ACLU has established that people of color are four times more likely to be arrested for possession of marijuana than their White counterparts, despite evidence these groups use the substance in equal measure. Federal estimates are that some 22 million Americans regularly use marijuana. Continue reading

One of the first of its kind California civil racketeering lawsuits involving two warring former cannabis business partners has been dismissed by a federal judge citing U.S. prohibition on marijuana. Los Angeles cannabis lawyer

Schulman et. al., v. Kaplan et. al. was a $200 million case filed last year in the U.S. District Court for the Central District of California pitting one marijuana grower against another, citing the Racketeer Influenced and Corrupt Organizations Act (RICO).

The case was unique because the majority of RICO legal battles were filed by those trying to shut down cannabis grow operators, arguing the farms slashed the value of their property due to the pungent odor of the plant and concerns over security. This matter, on the other hand, was a dispute between two fellow farmers who had once worked together. Continue reading

A cannabis businessman and two industry trade organizations are suing the City of Los Angeles and the city’s Department of Cannabis Regulation, home to the largest legal marijuana market, over social equity restrictions on stand-along marijuana delivery licenses. Los Angeles marijuana delivery lawyer

The new rules approved earlier this year blocked availability of stand-alone delivery-service licensing for the next five years. Continue reading

Small plot, outdoor California cannabis farmers are among those who stand to gain the most from the state’s new appellations law, under which marijuana growers can claim, protect and market the unique elements of the plant grown in their specific region. marijuana appellations lawyer

Appellations are legally defined and protected geographical indications. Appellations laws are the reason that only sparkling wine that originates from the region of Champagne, France can be legally marketed and sold as “Champagne,” (with a few exceptions for some semi-generic names that were grandfathered in a few years ago).

Back to marijuana marketing: Establishing a strong, consistent reputation for the best quality, potency and flavor profiles will give smaller growers a leg up in the market. This is critical for several reasons, including the fact that a place-based brand (very similar to what we see with producers of wine) could help some above-board growers edge out the black market dealers. A region with a highly-rated brand association could parlay that into a niche tourism market, similar to what we see in Napa Valley (which also relies heavily on appellations to build their credibility and customer loyalty). This could prove especially fruitful if prohibition is lifted at the federal level. Continue reading

A settlement has been reached in a lawsuit against a Canadian edibles maker for allegedly breaching California consumer protections laws for improper labeling of its THC and CBD products. Specifics of that settlement haven’t been made public, but the allegation was that the manufacturer of medicinal chocolates sold products in Southern California over the course of two years that failed to contain the amount of CBD and THC that was advertised. Los Angeles cannabis lawyer

Labeling lawsuits against CBD and THC product makers are increasing. As our Los Angeles cannabis attorneys can explain, it is imperative that companies ensure the level of THC and CBD in their products aligns with what is advertised. In this case, the lawsuit alleged the potency of these compounds in the products were “drastically” different from what was publicly claimed. Continue reading

Unsolicited marijuana business text advertisements have resulted in a number of class action lawsuits against pot providers, accused of spamming recipients with unwanted sales and deals. At least 12 marijuana ad lawsuits have been filed across the country over the last two years. Eaze, a California marijuana delivery company, is one of the first of those cases to head to court. That case was ultimately sent to arbitration last year, and the company ended up settling another similar case pre-trial for an undisclosed sum. Los Angeles marijuana marketing lawyer

Cannabis companies would be wise to turn to Los Angeles marijuana advertising attorneys before launching any sort of marketing campaign, as the navigating the legal waters of such enterprises can be fraught with peril. The reality is, marijuana marketers can’t afford to turn a blind eye to federal law that is on the side of consumers in these cases. After mounting a defense and settling a case, you could easily be looking at six-figures.

One of the primary issues in these cases are reported violations of the Telephone Consumer Protection Act (TCPA), a federal law that prohibits transmitting unsolicited advertisements of any goods, property or services to a person without their express prior permission or invitation. A cannabis advertising lawyer in California can help you review your marketing practices to make sure you aren’t risking vulnerability to such claims. Continue reading

A growing swell of support for decriminalization and legalization of marijuana – and expunging the criminal records of those with prior cannabis convictions – could indicate these policy changes might become reality in the next few years.

A top advisor to Joe Biden, the Democratic presidential nominee, stated emphatically that these would be top priorities for the new administration if he’s elected. L.A. cannabis lawyers

In an interview with MSNBC, the advisor referred to these drug reform policy proposals as “modest,” but also imperative, underscoring that neither Biden nor his pick for vice president, Kamala Harris, think people should be jailed for non-violent drug offenses.

This isn’t a total 180 from the campaign’s previous platform on drug policy, but it does indicate that marijuana reform is something that is being pushed to the forefront. The idea of decriminalizing – and going a step further to legalize – marijuana at the federal level was part of the recommendations made by a criminal justice task force that Biden and Sen. Bernie Sanders (I-VT) launched earlier this year. But Biden’s position doesn’t go quite that far. Continue reading

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