Cannabis: advertising and marketing restrictions.
If enacted, AB 794 would modify Section 26151 of the Business and Professions Code. It would ensure that advertisements not only contain the license number of the cannabis business but also clearly state the business's name. This aims to prevent misleading advertising practices and to assure that consumers can easily identify the source of cannabis products. Furthermore, it establishes that technology platforms and outdoor advertising companies must comply with these identification requirements, thus standardizing the information that consumers see in cannabis advertisements.
Assembly Bill No. 794, introduced by Assembly Member Flora, focuses on amending the advertising and marketing restrictions related to cannabis industry practices in California. The bill aims to enhance the existing regulations listed under the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). It specifically mandates that all cannabis advertisements must include both the licensee's name and license number, improving transparency and accountability in cannabis advertising.
There are some concerns surrounding the implementation and enforcement of the amendments proposed by AB 794. While proponents argue that clearer identification in advertisements will protect consumers and reinforce regulation, detractors may express concerns about the burden these requirements could impose on cannabis businesses, particularly smaller operators. Additionally, compliance with age verification protocols for advertising could add complexity for businesses that use varied advertising channels. Critics may argue that such regulations could inadvertently reduce the effectiveness of marketing strategies and limit business growth within the legal cannabis sector.