Senator Wiener anchors a new, regulatorily focused framework for California’s online marketplaces, weaving licensing transparency for cannabis and intoxicating hemp products with mandatory consumer reporting mechanisms and a civil liability regime for unlawful online advertising. The measure introduces parallel regulatory tracks for online cannabis marketplaces and online hemp marketplaces, each requiring disclosure about licensing status and license-verification practices, and it creates a private and public enforcement pathway designed to address unlicensed activity transmitted through digital platforms.
For online cannabis marketplaces, the proposal requires the terms of service to state whether unlicensed cannabis sellers may be viewed by Californians and whether the platform verifies licenses before displaying or storing seller information. It mandates a dedicated reporting mechanism that allows any person to flag unlicensed advertisements or business information, with a process that includes optional screenshot submission, a written confirmation within 36 hours, periodic status updates, and a final written determination within 30 days. The mechanism ensures each report is reviewed by a human, and the final finding may block the seller’s content, acknowledge unlicensed status and possible law-enforcement referral, or conclude that the content was not workably tied to an unlicensed seller. If a marketplace fails to verify licenses, it must display a conspicuous warning to consumers. Violations trigger civil penalties and damages, with private actions permitted, and the regime is complemented by injunctive relief and a potential injunction-enforced operating ban.
A parallel track applies to online hemp marketplaces, tailored to intoxicating hemp products, including definitions that align with existing state health and safety standards. The hemp framework requires the same kinds of disclosures in terms of service, a reporting mechanism with the same evidentiary and timing requirements, and a final-determination timeline. Civil penalties, private rights of action, and injunctive relief mirror the cannabis regime, with operative implementation planned for mid-2026.
Separately, a civil liability provision prohibits unlawful paid online advertising relating to unlicensed cannabis, cannabis products, or intoxicating hemp products and imposes joint and several liability on the online marketplace for damages that a consumer sustains where the marketplace’s paid advertising is a substantial factor in an unlawful transaction. The measure elevates penalties when the marketplace had actual knowledge of licensing issues or when harm involves a child, and it provides complete affirmative defenses for platforms that can show robust license-verification policies, appropriate labeling or disclosures, or removal actions taken before a suit was filed. The new liability framework also permits indemnification against advertisers that misrepresented licensing status, and it establishes operative date deadlines in line with the marketplace provisions.
Taken together, the bill’s Findings frame illicit, unlicensed cannabis activity as an online-enterprise risk that intersects with consumer safety and child protection, arguing that internet platforms bear accountability for facilitating illicit supply chains. The integrated approach—licensing transparency, mandatory reporting, and civil-penalty remedies—maps to a broader regulatory intent to increase visibility into licensing status, improve platform accountability, and deter unlawful advertising across cannabis and intoxicating hemp markets. The package contemplates a transition ending with a 2026 implementation window, a private and public enforcement mix, and severability to preserve functional parts if others are challenged, setting a comprehensive, jurisdictionally tailored approach to online marketplace accountability in this domain.
![]() Scott WienerD Senator | Bill Author | Not Contacted |
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Senator Wiener anchors a new, regulatorily focused framework for California’s online marketplaces, weaving licensing transparency for cannabis and intoxicating hemp products with mandatory consumer reporting mechanisms and a civil liability regime for unlawful online advertising. The measure introduces parallel regulatory tracks for online cannabis marketplaces and online hemp marketplaces, each requiring disclosure about licensing status and license-verification practices, and it creates a private and public enforcement pathway designed to address unlicensed activity transmitted through digital platforms.
For online cannabis marketplaces, the proposal requires the terms of service to state whether unlicensed cannabis sellers may be viewed by Californians and whether the platform verifies licenses before displaying or storing seller information. It mandates a dedicated reporting mechanism that allows any person to flag unlicensed advertisements or business information, with a process that includes optional screenshot submission, a written confirmation within 36 hours, periodic status updates, and a final written determination within 30 days. The mechanism ensures each report is reviewed by a human, and the final finding may block the seller’s content, acknowledge unlicensed status and possible law-enforcement referral, or conclude that the content was not workably tied to an unlicensed seller. If a marketplace fails to verify licenses, it must display a conspicuous warning to consumers. Violations trigger civil penalties and damages, with private actions permitted, and the regime is complemented by injunctive relief and a potential injunction-enforced operating ban.
A parallel track applies to online hemp marketplaces, tailored to intoxicating hemp products, including definitions that align with existing state health and safety standards. The hemp framework requires the same kinds of disclosures in terms of service, a reporting mechanism with the same evidentiary and timing requirements, and a final-determination timeline. Civil penalties, private rights of action, and injunctive relief mirror the cannabis regime, with operative implementation planned for mid-2026.
Separately, a civil liability provision prohibits unlawful paid online advertising relating to unlicensed cannabis, cannabis products, or intoxicating hemp products and imposes joint and several liability on the online marketplace for damages that a consumer sustains where the marketplace’s paid advertising is a substantial factor in an unlawful transaction. The measure elevates penalties when the marketplace had actual knowledge of licensing issues or when harm involves a child, and it provides complete affirmative defenses for platforms that can show robust license-verification policies, appropriate labeling or disclosures, or removal actions taken before a suit was filed. The new liability framework also permits indemnification against advertisers that misrepresented licensing status, and it establishes operative date deadlines in line with the marketplace provisions.
Taken together, the bill’s Findings frame illicit, unlicensed cannabis activity as an online-enterprise risk that intersects with consumer safety and child protection, arguing that internet platforms bear accountability for facilitating illicit supply chains. The integrated approach—licensing transparency, mandatory reporting, and civil-penalty remedies—maps to a broader regulatory intent to increase visibility into licensing status, improve platform accountability, and deter unlawful advertising across cannabis and intoxicating hemp markets. The package contemplates a transition ending with a 2026 implementation window, a private and public enforcement mix, and severability to preserve functional parts if others are challenged, setting a comprehensive, jurisdictionally tailored approach to online marketplace accountability in this domain.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
32 | 0 | 8 | 40 | PASS |
![]() Scott WienerD Senator | Bill Author | Not Contacted |