This bill is part of the 2019 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.
AB 1417 (Rubio, Blanca D) Cannabis advertisement and marketing: internet: license number: statements: unfair business practice: public nuisance.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, requires all cannabis advertisements and marketing to accurately and legibly identify the licensee responsible for that content by adding, at a minimum, the licensee’s license number.
This bill would impose a civil penalty on any person that violates that requirement, not to exceed $2,500 per day for each violation. The bill would allow the Attorney General, a district attorney, a city attorney or prosecutor, or a person in the public interest to bring a civil action for the civil penalty, as specified.
MAUCRSA, in addition to the requirement that all cannabis advertisements and marketing accurately and legibly identify the licensee responsible for the content, also places certain audience restrictions and age affirmation requirements on cannabis advertisement and marketing.
This bill would require an operator of an internet website, online service, online application, or mobile application that is operated primarily for the purpose of promoting, or disseminating information about, the sale of cannabis products in the State of California to display a clear and reasonable statement, meeting specified requirements, to individuals who visit or use the internet website, online service, online application, or mobile application, containing specified explanations, including, among others, that cannabis products sold by unlicensed entities may not meet the safety, quality, or other standards required for the lawful sale of cannabis products by the State of California.
The bill would prohibit an operator of an internet website, online service, online application, or mobile application that is operated primarily for the purpose of promoting, or disseminating information about, the sale of cannabis products in the State of California from displaying an advertisement for the sale of cannabis products unless the advertisement displays the license number of the licensee to which the advertisement pertains.
This bill would impose a civil penalty on any person that violates these requirements, not to exceed $2,500 per day for each violation. The bill would allow the Attorney General, a district attorney, a city attorney or prosecutor, or a person in the public interest to bring a civil action for the civil penalty, as specified.
This bill would require all civil penalties collected by civil action brought by the Attorney General or a person in the public interest pursuant to the provisions of this bill described above to be deposited into the Cannabis Advertisement Penalties Account, which this bill would create as an account in the Cannabis Control Fund, and would require, upon appropriation by the Legislature, all amounts deposited in the account to be allocated to licensing authorities to be used toward after requirement to costs enforcement efforts against unlicensed commercial cannabis activity. The bill would require all civil penalties collected by a civil action brought by a district attorney or a city attorney or prosecutor to be used towards enforcement efforts against unlicensed commercial cannabis activity after reimbursement for costs.
Existing unfair competition laws establish a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and acts prohibited by false advertisement laws.
This bill would make it an unfair business practice, in violation of unfair competition laws, for any advertising or marketing for cannabis goods that is placed in broadcast, cable, radio, print, and digital communications to fail to prominently include in any advertisement or marketing an active state license number issued by the Bureau of Cannabis Control, Department of Food and Agriculture, or the State Department of Public Health pursuant to MAUCRSA for the person whose commercial cannabis activity or cannabis product is being advertised or marketed.
This bill would also make it an unfair business practice, in violation of unfair competition laws, for any broadcaster, cable, radio, printer, or provider of digital communications, including, but not limited to, a technology platform provider, to fail to prominently include in any advertisement or marketing an active state license issued pursuant to MAUCRSA from the Bureau of Cannabis Control, Department of Food and Agriculture, or the State Department of Public Health for the commercial cannabis activity or cannabis product being advertised or marketed. The bill, in any civil action for injunctive relief under unfair competition laws, brought by any person pursuing representative claims or relief on behalf of others against any broadcaster, cable, radio, printer, or provider of digital communications, including, but not limited to, a technology platform provider, for that unfair business practice, would deem that the question is one of a common or general interest, of many persons, the parties are numerous, and it is impracticable to bring them all before the court such that the claimant meets the requirements for a class action.
Existing law defines a public nuisance as one that affects an entire community or neighborhood at the same time, or any considerable number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal, and provides that a public nuisance may be remedied by an indictment or information, a civil action, or abatement.
This bill would make any advertisement or marketing that fails to prominently include an active state license number issued by the Bureau of Cannabis Control, Department of Food and Agriculture, or the State Department of Public Health pursuant to MAUCRSA for the person whose commercial cannabis activity or cannabis product is being advertised or marketed a public nuisance.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
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