cannabis company

June 25, 2022

Study: California Cannabis Companies 100% Compliant With ID Checks to Prevent Youth Purchases

Marijuana retailers in the Golden State have been doing an an amazing job impeding underage access to cannabis. That’s according to a new study just published in the Journal of Safety Research. marijuana business lawyer

This is excellent news because one of the core points of opposition to legalization of recreational marijuana sales in California was the potential for rampant youth access. This analysis shows that California cannabis companies are doing more than paying lip service to the promise of avoiding this outcome. They are – both in policy and in practice – keeping minors away.

As our Los Angeles marijuana business lawyers can explain, being lax with policies and protocol intended to block those under 21 from accessing cannabis can result in major legal headaches for pot shops. Adults over 21 can purchase, possess, and use small amounts of marijuana legally in this state. But California Health & Safety Code 11361 prohibits adults from selling, giving, or offering marijuana to a minor, inducing a minor to use marijuana, or employing a minor to transport, sell, or give away marijuana. To do so is a felony punishable by between 3-5 years in prison. The exact penalty depends on the age of the minor, the circumstances of the case, and the criminal history of the person accused.

According to the report, the researchers sought to analyze the industry’s compliance with state-level personal identification requirements in California. So they chose 50 randomly-selected retail outlets to determine if one could get in without presenting ID. But 100 percent of the time, the shop required ID be shown, and refused entry to anyone without identification showing they were older than 21.

The consistency of this compliance was something researchers noted with surprise – but it’s not all that shocking to our marijuana business lawyers, considering the penalties lawful operations face if they break the law. Retailers face being shut down completely for illegal activity if they allow access to youth. Police are allowed (and have been known to) use underage decoys to test cannabis business compliance with these rules. That’s why most often, licensed shops require identification upfront, before a person is even allowed into the main portion of the store. Continue reading

April 27, 2022

Expect Candy Corp. Cases Against Cannabis Companies to Compile

By Cannabis Law Group

A recent lawsuit the maker of Skittles candy against a California-based cannabis company is indicative of a trend our Los Angeles cannabis attorneys expect to continue if marijuana business brands continue to copycat big-name candies. Los Angeles cannabis lawyer

In Wm. Wrigley Jr. Company v. Terphogz, LLC, the Chicago-based candymaker of Skittles launched an advertising campaign that involved the slogan, “Taste the Rainbow.” The advertising and packaging for their fruit-flavored candy shows the slogan with a large S logo. The company alleges that a cannabis company in Medocino is selling merchandize under the name Zkittlez, with illustrations of its goods advertised as looking very similar to the Skittles candy. On its website, which sells cannabis-related items and goods nationally (as well as to residents of Illinois, where plaintiff is based), it sells goods under the brand name Zkittlez, with the similar logo.

The defendants say they do not engage in cannabis sales, but rather license the intellectual property rights to cannabis companies in California nd Oregon. Defendants say they don’t engage in business in Illinois, run targeted advertising there, or run any companies or have professional contacts there. Three of the board members have never been to Illinois. Plaintiffs say, however, that prior to the website being shut down in May 2021, the Zkittlez branded goods were available for shipment to the entire U.S., with recorded gross proceeds somewhere around $32,000. The Wm. Wrigley Jr. Company is seeking treble (triple) damages for the alleged copyright infringement.

The defendants have tried to get the case dismissed. However in November, a judge rejected their motion to dismiss, meaning the case is continuing through the courts. Continue reading

November 29, 2021

Fighting California Cannabis License Revocation Lawsuit

By Cannabis Law Group

Revocation of a cannabis license can prove fatal to a marijuana business, unless one takes swift and decisive legal action. All legal remedies should be discussed with an experienced and highly qualified L.A. cannabis business lawyer. Los Angeles marijuana business lawyer

Recently, it was announced that a marijuana dispensary has filed a lawsuit against the city of South Lake Tahoe after the city council of the California community on the Nevada border revoked its business license for failure to open on time. The delay, according to the plaintiff, was directly related to the COVID-19 pandemic, something entirely outside the firm’s control.

According to the Associated Press, the company had been awarded two microbusiness marijuana licenses two years ago. Part of the deal was the firm would open up shop within one year. However, the pandemic created an unforeseen situation that prevented the company from meeting the deadline. The agreement became effective in February 2020, but the world effectively turned upside down with the pandemic, with both business and construction coming to an abrupt halt the following month. When construction picked up again, the demand for construction materials and workers was such that the business couldn’t keep up. Continue reading

November 14, 2019

Legal Considerations of California Marijuana Business Rebranding

By Cannabis Law Group

The “stoner” stereotype has plagued California cannabis businesses since before the drug was legal as medicine in the late 1990s. But many Los Angeles marijuana businesses are looking to re-brand their images in the hopes of better reflecting the type of business they do. marijuana advertising

Branding is valuable for any business, but in the case of marijuana, the benefits are industry-wide because it can help to combat archaic conventional perceptions about marijuana as a product. Formulating a professional, unified brand can help address this – and allow companies to carve a name and a niche in a fiercely competitive market.

On the flip side, even where it’s legal to sell marijuana, it’s tough to advertise it. As our Los Angeles marijuana advertising attorneys can explain, marketing cannabis brands and marijuana dispensaries is rife with hurdles.

Hurdles to California Cannabis Advertising

A recent poll from Pew Research Center reveals nearly 7 in 10 Americans think marijuana should be legal. There’s a broad market of potential consumers within your reach. But when it comes to advertising, marijuana businesses need to tread carefully. Continue reading