Cannabis Law Group's Medical Marijuana Legal Blog

May 4, 2023

Fake CBD Endorsement Claims Can Lead to Lawsuits, Big Payouts

If you’re in the Los Angeles CBD business, it’s important to avoid playing fast-and-loose with celebrity endorsements and/or likenesses. Sure, there are many celebrities who are vocal fans of cannabis and CBD products, and some even have their own brands. But as our Los Angeles CBD business attorneys can explain, false assertions of big-name support have led to multi-million-dollar payouts in a number of recent cases. If you do have the green light from a prominent figure to use their name and likeness to promote your product, it is imperative that you get it all clearly in writing – to protect your company, your employees, and your assets. Los Angeles CBD lawyer on celebrity endorsements

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). Continue reading

April 29, 2023

California Remains in Minority of States With No THC Legal Limits for Drivers

By Cannabis Law Group

Recreational marijuana has been legal for adults in California for the past 7 years – but driving under the influence of marijuana (or any mind-altering substance) has always been strictly prohibited. But despite all the legislative and regulatory developments with respect to marijuana law, the state has yet to establish any bright line rule on legal THC limits for drivers. Los Angeles marijuana DUI defense

Of course, as our Los Angeles cannabis DUI lawyers can explain, a big part of the reason for that is because it’s none so simple to establish marijuana intoxication simply based on the levels of psychoactive THC in one’s body. Unlike alcohol, which cycles through the body very quickly, THC remains traceable for weeks after consumption. A 0.08 percent blood-alcohol level would likely indicate recent excess alcohol consumption. But the same isn’t true for THC. Person A might have higher levels of THC in their bloodstream than Person B, but still be less intoxicated. The level of THC in one’s system simply doesn’t tell the whole story, particularly if one is a regular cannabis consumer.

Despite this, 18 other states have imposed some sort of limit on the amount of THC drivers can have in their bloodstream before they’re considered “under the influence” of cannabis. (THC, of course, is short for tetrahydrocannabinol, the element contained in marijuana that creates the “high.”)

There are some safe driving advocates trying to change that. One of those is the family of a 25-year-old who died tragically in a California car accident in 2020 – a passenger in a truck driven by her boyfriend. He would later say he saw an animal, jerked the steering wheel, and crashed into another vehicle – totaling his truck and killing his girlfriend instantly. The woman’s father believes the boyfriend was stoned, and he’d even spoken to his daughter about not getting into the car with her boyfriend when he’d been consuming cannabis. Her mother said she’d spoken directly to the boyfriend about what they recognized as a serious safety issue.

The boyfriend, according to a local news outlet, reportedly conceded that he’d consumed marijuana the day of the crash – but he was a habitual user of cannabis and his consumption had been earlier in the day. He insisted he was not impaired. Continue reading

April 16, 2023

Breakdown of U.S. Rules for CBD Cosmetics by L.A. Cannabis Business Lawyer

By Cannabis Law Group

Although it didn’t get a lot of splashy coverage when it first passed, the gargantuan appropriations bill signed by the president at the end of last year contained a piece of legislation that has some significant potential for expansion of the cannabis cosmetics industry. Los Angeles CBD business

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?

April 5, 2023

Twitter Marijuana Advertising Rules Still Restrictive

By Cannabis Law Group

Twitter recently garnered a great deal of praise for being the first social media giant to revisit its marijuana advertising rules, opening the door to industry promotion of brands and informational content related to THC, CBD, and cannabis-related products and services.

Certainly, this is big news. But our Los Angeles cannabis business consulting lawyers would urge caution before rushing to your marketing firm for content. Los Angeles cannabis advertising lawyer

Previously, the company only permitted ads for hemp-derived CBD topical products. This was still more progressive than other social media firms. TikTok, Instagram, and Facebook have had (and maintain) a strict no cannabis advertising policy – so long as it remains illegal at the federal level. (This despite the fact that 21 states allow recreational use cannabis – and more are on the horizon.) It’s likely only a matter of time before these other social media platforms adopt policies similar to Twitter’s.

However, despite giving the green light to “approved cannabis advertisers to target the U.S.,” cannabis companies on Twitter still aren’t allowed to advertise their actual products for sale. The only exception is for topical, hemp-derived CBD products that contain less than 0.3 percent THC (which is the government’s threshold for being classified as a CBD product rather than a more heavily-restricted THC product). Undoubtedly, there’s a market for these types of products, but it doesn’t represent the full array of cannabis products and services.

Further, cannabis companies seeking to advertise on Twitter must:

Have a proper license.
Pass through Twitter’s ad approval process.
Limit their target audience to jurisdictions wherein they are licensed to operate.
Do not target youth under age 21.

Advertisers are NOT allowed to:

Create ads that promote or depict people using cannabis.
Display advertising that shows people under the influence of cannabis.
Claim any sort of efficacy or health benefits.
Use any celebrities, images, icons, characters, or athletes in their ads that might appeal to children or those under 21.

March 29, 2023

Federal Bipartisan Effort Seeks to Reschedule Psychedelic Breakthrough Therapies

By Cannabis Law Group

Federal lawmakers – from both sides of the aisle and in both Congressional bodies – are pushing for a means of streamlining so-called “breakthrough therapies” that involve psychedelic drugs like MDMA and psilocybin for the purpose of promoting drug research and development. California cannabis lawyer

As longtime Los Angeles cannabis business attorneys, we help break down what legislators are after.

The new bill, introduced by Democrats and Republicans in both the House and Senate, is titled the, “Breakthrough Therapies Act.” It seeks to revise the U.S. Controlled Substances Act by establishing a procedure through which certain Schedule I narcotics can be considered “therapies” by the U.S. food & Drug Administration. Either that, or they could qualify for a waiver via the U.S. food, Drug, and Cosmetic Act (FDCA). This waiver would allow the drugs to be transferred under a lower-schedule classification to research facilities and pharmaceutical laboratories.

March 15, 2023

FDA Outlines CBD Risks, Declares Legal Dispensary Products Safest

By Cannabis Law Group

When it comes to the sales and distribution of CBD, there are a lot of unknowns as far as the potential health implications – for better are worse. But now, federal regulators have released comprehensive guidance of this popular cannabinoid. The guidance reviews the potential harms, side effects, and unknowns, while stressing that state-legal cannabis dispensaries provide the safest CBD products to consumers. CBD lawyer Riverside

As our Los Angeles CBD lawyers recognize, CBD has been on store shelves legally across the U.S. since the passage of the federal 2018 Farm Bill. Recently, advisory notes from the Substance Abuse and Mental Health Services Administration indicate its popularity has ballooned, now being available from some 270,000 retailers across the country. It’s sold in beverages, tinctures, topical ointments, food, and more.

The primary point stressed by federal regulators is that whatever CBD’s benefits, it’s not intended or recognized as safe for children unless expressly approved by the U.S. Food & Drug Administration (FDA) for a specifically stated purpose. As it stands, the only approved purpose for administering CBD to children is to help treat rare cases of epilepsy. Even then, only the purest form of CBD is recommended.

It’s estimated that one-third of Americans used CBD or a CBD-infused product at some point in 2020.

Among the main concerns listed by the federal agency:

Lack of clear safety standards.
Inconsistent quality control.
Lack of uniformity in labeling.

All of these, the agency said, leads to additional concerns for accidental intoxication or overdose – primarily involving children. The primary health risks include potential for adverse drug interactions, adverse impacts to development and reproduction, and liver toxicity. These statements, however, lack the clinic research that might conclusively determine the safety (or lack thereof) with regard to CBD products. They simply haven’t been studied adequately – thanks to the U.S. government’s own rules.

What’s more, the FDA didn’t go out of its way to list the benefits of CBD – which include reduced reliance on powerful prescription medications like opioids for treatment of chronic pain and other conditions.

Despite this (and fervent calls from CBD industry advocates, stakeholders, and California lawmakers), the FDA has already stated it’s not going to issue rules specific to CBD that would allow it to be lawfully used as a food item or dietary supplement. The agency said it intends to rely on Congress to create these new rules.

The agency has also turned down numerous requests from Americans seeking FDA rules for CBD marketing. This has left California CBD retailers and manufacturers in the dark about what rules they need to follow – making it all the more imperative to rely on an experienced cannabis lawyer for guidance on walking the legal tightrope on everything from banking to advertising to sales to warehousing to order fulfilment. Continue reading

March 8, 2023

Cannabis Companies to Open Doors in Riverside, California

By Cannabis Law Group

Recreational marijuana has been legal in California since 2016 – but Riverside is only just now on the cusp of allowing cannabis businesses for the first time ever. Riverside cannabis lawyer

As our Riverside cannabis lawyers can explain, city council voted 5-2 to green light 14 marijuana shop permits. The city has first passed a moratorium on cannabis companies in 2017 – with the exception of marijuana testing labs. This was despite the fact that Riverside voters supported Proposition 64 (which legalized recreational cannabis) by a 53 percent majority. A year later, the council agreed on an outright prohibition of commercial cannabis operations – except for labs.

Then two years ago, the city caught wind of a citizen-led effort to undercut the municipal ban on marijuana sales. Signatures to move the petition forward were never formally submitted, but the city did start weighing whether it should initiate its own permit program and regulatory framework. (Likely, they wanted to sidestep the reality that it was probably going be done whether they wanted it or not, and best to have some control over the final outcome.)

The city is actively studying how best to support permit seekers who have been disproportionately impacted by anti-cannabis legislation in the past. The initial outlay caps cannabis retailers at 14, but there’s no such limit for the number of labs, manufacturing companies, or distribution firms. Voters will need to consider whether they’re willing to accept taxation for the measure. A vote is expected in November 2024.

One councilmember against the initiative said he doesn’t believe marijuana sales in the city are an inevitability, worried over police and other public services burdening more duties, and lamented the fact that a gateway drug was going to be so easily accessible – particularly for young people. Just recently, the sheriff’s office arrested several older adult teens in Riverside for selling vape pens with concentrated cannabis to minors using a mobile delivery service.

But those who support legal cannabis say that a well-regulated market has proven to offset many of these concerns. Continue reading

February 20, 2023

Can California Cannabis Patents Survive Illegality Doctrine?

By Cannabis Law Group

The federal Controlled Substances Act has long been the primary thorn in the side of the U.S. cannabis industry at-large. Despite state-legal marijuana cultivation, production, sales, and possession, its status as a Schedule I narcotic by federal law has had all kinds of adverse impacts. Among these: Companies struggle to protect their California cannabis patents, thanks to something known as the illegality doctrine. Los Angeles cannabis patents

Basically, the illegality doctrine is a principle arising out of English common law (first articulated by American courts way back in 1775) that basically says courts don’t have jurisdiction over claims that arise from acts that are illegal. So for example, if someone is unlawfully selling heroin and robbed, the victim may have no recourse for restitution of the stolen heroin or trafficking funds – because they were illegal in the first place.

With regard to cannabis company patents, there have been a flood of new state-legal marijuana brands and products on the market in recent years. But protecting those unique patents and trademarks has proven extremely challenging because of the illegality doctrine. Patents and trademarks are protected under federal law – which also considers the underlying substance they’re trying to protect as illegal.

However, as our Los Angeles marijuana business lawyers can explain, that may not be the last word on it.

Take, for instance, the case last year of Gene Poole Technologies, Inc. v. Coastal Harvest, LLC. This was a decision handed down by the U.S. District Court for the Eastern Division in California. This was a noteworthy case because up until then, no federal court had addressed whether it would allow state-legal cannabis companies to pursue patent protections. Here, the court held that the illegality doctrine was not a bar to enforcing a California cannabis product patent.

The outcome of this case wasn’t a guarantee, particularly given that in a number of other non-patent cannabis cases in federal court, the effectiveness of the illegality doctrine as a defense has been a bit of a mixed bag. Continue reading

February 15, 2023

DEA Declares Delta-8-THC-O & Delta-9-THC-O Illegal, Not Hemp

By Cannabis Law Group

Los Angeles cannabis business lawyer Despite being widely labeled as hemp-derived novel cannabinoids, Delta-8 THC-O and Delta-9-THC-O have been declared illegal by the U.S. Drug Enforcement Administration. In a letter to a law firm dated Feb. 13, 2023, the agency stated in no uncertain terms that these popular products – referred to collectively under the title THCO – are legally considered “controlled substances.” This directly contradicts with previous federal court rulings that determined delta-8 products could be considered “hemp” and thus lawful under the 2018 Farm Bill.

Note: Delta-8-THC-O and Delta-9-THC-O are different than delta-8-THC and delta-9-THC. While the latter both exist naturally in the hemp plant, THC acetate (better known as THC-O) doesn’t. That’s the underlying basis for the DEA’s position.

THC acetate is most typically a component of products like edibles and vapor cartridges. As Los Angeles cannabis business lawyers, we want to ensure any companies that currently produce, transport, stock, and sell these products take immediate note. It’s not immediately clear how this will impact the market, so it’s a smart idea to immediately consult with a cannabis lawyer on how best to proceed and ensure you’re on the right side of the law.

How the Farm Bill Factors

The 2018 Farm Bill opened the door to a number of cannabinoid products that are known to also have intoxicating properties. This has drawn the attention and ire of some politicians and interest groups. The additional scrutiny has led to legal challenges that have wound up in court. Continue reading

February 14, 2023

California Marijuana Sales & Use May Still Pose Landlord Legal Challenges

By Cannabis Law Group

Marijuana cultivation, processing, sale, and possession is legal for adults in California. Unfortunately, that doesn’t mean all legal challenges have been abated. In some cases, landlords – commercial and residential – may continue to face certain legal challenges. Los Angeles marijuana business lawyer

As longtime Los Angeles marijuana lawyers, we’re committed to protecting the rights of Southern California cannabis businesses – and the ancillary operations that serve and/or rely on them.

Central to protecting everyone involved is a carefully-written lease agreement – one that takes into consideration all relevant state laws and local ordinances, as well as potential liabilities for each party. Working carefully with a marijuana business lawyer can go a long way.