Recent FTC and FDA Warning Letters May Hold Lessons For Cannabis Advertisers

Last month the Federal Trade Commission (FTC) and the U.S. Food and Drug Administration (FDA) sent joint warning letters to four companies that manufacture and advertise flavored liquids used in vaping (“e-liquids”).  While the letters focus on the nicotine content of the products, they should nevertheless be of interest to cannabis advertisers because they demonstrate a continued regulatory focus on vaping and suggest a framework that may soon apply more broadly to the promotion of retail cannabis products.… More

Massachusetts Clarifies Law on Hemp and CBD Sales

The Massachusetts Department of Agricultural Resources (“MDAR”) and the state’s Department of Health (“DPH”) have issued new guidance on the sale of Hemp and Hemp-derived cannabanoids, (namely, CBD) products in Massachusetts.

The MDAR guidance applies to hemp and hemp-derived products.  It establishes that the follow hemp-derived products can be sold in Massachusetts:

  • Hemp seed
  • Hemp seed oil
  • Hulled hemp
  • Hemp seed powder
  • Hemp protein
  • Clothing
  • Building material
  • Items made from hemp fiber.…
  • More

Massachusetts Regulators Placing Increased Focus on Cannabis-Related Securities Offerings

Massachusetts Secretary of State Bill Galvin and his Securities Division are increasingly turning their attention toward securities offerings in the cannabis industry, as demonstrated by the June 19, 2019 filing of the second enforcement action against a cannabis business in the last two months.  The filing was accompanied by a statement from Galvin warning of future sweeps in the industry.

The latest enforcement action, brought against Positronic Farms,… More

Antitrust Regulators Seek Additional Information from Cresco Labs, Origin House

Cresco Labs announced this week that United States antitrust regulators are seeking additional information about its anticipated acquisition of Origin House. Pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Cresco Labs was required to notify the U.S. Department of Justice Antitrust Division (the “Division”) of the transaction and to observe a waiting period while regulators reviewed the transaction. On June 10, the Division requested additional information regarding the proposed transaction.… More

New Jersey Seeking Applications for 108 new ATCs

The New Jersey Department of Health’s Medical Marijuana Program announced on Monday that it was seeking applications to license up to 108 additional Alternative Treatment Centers (ATCs). More specifically, the Department intends to license up to 24 cultivators, 30 manufacturers, and 54 dispensaries.  The cultivator licenses will be divided into three different size categories: 5,000 square feet, 20,000 square feet, and 30,000 square feet. The purpose of sub-dividing the cultivation licenses by size is to create opportunities for small and medium-sized businesses to participate in the medical marijuana program.… More

Illinois to Legalize the Recreational Use of Marijuana

Illinois is set to become the 11th state to legalize the recreational use of marijuana – and the first state to do so by legislation rather than by voter initiative – after the State House passed a legalization bill on Friday, May 31.  Governor J.B. Pritzker campaigned for office on a pro-legalization platform, and is widely expected to sign the bill into law.

The bill would allow recreational sales to begin as soon as January 1,… More

FDA CBD Hearing Leaves Questions Unanswered

On Friday, May 31, 2019 the U.S. Food and Drug Administration (“FDA” or “Agency”) held the widely anticipated hearing on scientific data and information about products containing cannabis or cannabis-derived compounds, including cannabidiol (“CBD”). This is the first public hearing since legalization of hemp in the 2018 Farm Bill. The Agency heard from approximately 140 speakers from diverse industries including, academia, agriculture, consumers, health professionals, and manufacturing companies who offered various perspectives on the safety of cannabis-derived compounds and CBD.… More

What is the Legislative State of Cannabis Affairs?

In light of increased national momentum involving the cannabis industry, we provide below an update of the current legislative state of affairs for cannabis including the highly anticipated public hearing hosted by the U.S. Food and Drug Administration (FDA) on May 31, 2019. The summary highlights hindrances faced by states in attempting to legalize marijuana and touches upon federal implications stemming from the Farm Bill .… More

USCIS: Working in Cannabis Industry Shows Lack of Moral Character

Immigrants who undertake the cumbersome process of becoming a naturalized U.S. citizen need to establish their “good moral character” (“GMC”) as part of their applications. That just got harder for immigrants who work in the cannabis industry. The United States Citizenship and Immigration Services (“USCIS”) recently released policy guidance regarding “controlled substance-related activity and good moral character determinations.” The guidance clarifies that a violation of federal marijuana law “is generally a bar” to establishing GMC,… More

Momentum Grows for Federal Banking Legislation

Last month, the House Financial Services Committee advanced a federal marijuana banking bill to the full House on a bi-partisan 45 to 15 vote. The “Secure and Fair Enforcement Banking Act” or “SAFE Banking Act” would prevent federal banking regulators from taking adverse actions against financial institutions solely due to an institution’s provision of financial services to state-legal cannabis businesses. The bill would also provide protections for financial institutions that do business with cannabis-industry service providers by declaring that proceeds from such providers do not constitute “proceeds from an unlawful activity.” And,… More