Bill > SB378

This bill establishes comprehensive regulations for online cannabis and hemp marketplaces, targeting the proliferation of unlicensed and potentially dangerous cannabis and hemp product sales. Beginning July 1, 2026, online marketplaces will be required to implement a clear reporting mechanism that allows individuals to flag advertisements from unlicensed sellers, with mandatory steps including providing written confirmation of reports within 36 hours, periodic updates, and a final determination within 30 days. The bill imposes significant penalties for non-compliance, including civil penalties up to $10,000 per violation and potential joint and several liability for damages caused by unlicensed sellers. Online marketplaces must also disclose in their terms of service whether they permit advertisements from unlicensed sellers and whether they verify seller licenses. For cannabis marketplaces, platforms that do not verify licenses must display a clear warning to consumers about potential unlicensed sellers. The legislation provides additional protections for consumers, particularly children, by allowing increased damages in cases involving harm to minors and establishing affirmative defenses for marketplaces that can demonstrate proactive measures to prevent unlicensed sales. The bill aims to combat the black market cannabis trade by creating accountability for online platforms that facilitate sales of unregulated products.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB378