In the Cannabis world regulatory compliance varies from product to product and jurisdiction. But regulatory compliance is essential, because in the Cannabis world law enforcement in general has no sympathy or compassion for businessmen and women who don’t comply with the often arcane and conflicting regulations in the Cannabis world. To avoid hefty fines, confiscation of product and even complete termination of your business you need to comply with federal (if possible), state and local regulations. We break down the regulatory framework into three sections.
On the THC side our main objective is to ensure that our clients are 100% compliant with all the complex rules and regulations in the industry. With THC we specialize in California regulation issues which are highly complex. California has three regulatory bodies, the California Cannabis Bureau, the Manufactured Cannabis Safety Branch, and the CalCannbis Division of the Department of Agriculture. These three regulatory bodies have produced a myriad of regulations that we help our clients comply with. The most onerous of these regulations is the so called “matrix system”, where the state of California is attempting to track every Cannabis product from “seed to sale”. At Herrick & Herrick we pride ourselves in knowing these regulations and insuring you comply with them.
In the CBD business, regulatory compliance really focuses more on how to avoid notices from the FDA. The FDA sends out compliance letters that are not fun to encounter. Here is an example of one here (put FDA letter here). So you want to make sure that you present your products in a particularly legally compliant way in marketing materials and on line, so your business will not catch the attention of the FDA. The FDA still considers CBD a drug that it has to approve for oral consumption, smoking, vaping, and topical use.
There are disclosures and other steps people can take on their websites, social media and packaging that can help a new and growing business avoid the hostile glare and attention of the FDA. One example of violating these guidelines is that you don’t want to claim on your website that your CBD product cures cancer or Multiple Sclerosis. If you don't follow these guidelines you can receive a letter from the FDA like the one pictured below. Having a trained legal eye review your marketing material and especially your website is essential if you are involved in a CBD business.
Although Hemp is federally legal and THC has been made legal in many states, many local jurisdictions are very hostile to any cannabis presence in their jurisdiction. If you are a grower you want to be in compliance with all local cultivation regulations, if you are involved in manufacturing you want to be in compliance with the local manufacturing rules and if you do retail you want to make sure your shop is in compliance with local business practices. You want to do everything in your power to be legally compliant so local hostile law enforcement can’t find an easy excuse to shut you down.
The FDA still considers CBD a drug that it has to approve for oral consumption, smoking, vaping, and topical use, there are disclosures and other steps people can take on their websites, social media and packaging that can help a new and growing business avoid the hostile glare and attention of the FDA. If you don't you can receive a letter from the FDA like the one above. Having a trained legal eye review your marketing material and especially your website is essential if you are involved in a CBD business.