Online marketplaces: illicit cannabis: reporting and liability.
Impact
If enacted, SB 378 will amend the Business and Professions Code to require online cannabis marketplaces to disclose in their terms of service whether they allow advertisements from unlicensed cannabis sellers and how they verify seller licenses. This legislation is viewed as a necessary step to combat the growing black market for cannabis, which poses risks to public health, especially for children, and undermines legal cannabis vendors. Moreover, the bill imposes strict liability on online platforms for facilitating transactions with unlicensed sellers, significantly altering the legal framework governing online cannabis sales in California.
Summary
Senate Bill 378, introduced by Senator Wiener, addresses the issue of illicit cannabis sales by imposing strict regulations on online marketplaces that advertise cannabis products. The bill seeks to ensure that consumers are protected from unlicensed sellers and illegal cannabis products, requiring these platforms to verify seller licenses and to clearly warn users about unlicensed offerings. It aims to create a safer commercial environment for cannabis products in California, primarily in response to concerns raised by local governments and health officials about the dangerous implications of unregulated cannabis sales.
Sentiment
The sentiment around SB 378 is largely positive among supporters who believe it is essential to protect public health and safety. Advocates see it as a crucial mechanism to combat the illicit cannabis market that harms established legal sellers and exposes consumers to unregulated products. However, there are concerns among some stakeholders about potential overreach and the implications for legitimate online cannabis businesses if they are burdened with stringent liability regulations.
Contention
Notable points of contention within the discussions around SB 378 include concerns from online cannabis marketplaces about the feasibility of enforcing strict liability for violations related to unlicensed sellers. Some argue that the bill could inadvertently inhibit legitimate businesses by imposing severe penalties. Additionally, there is debate about how effectively the bill can distinguish between licensed and unlicensed vendors, particularly given the complexity of online advertising and consumer behavior in the cannabis market.