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    SB-378
    Agriculture & Food

    Online marketplaces: illicit cannabis: reporting and liability.

    Enrolled
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Creates online cannabis and hemp marketplace regimes with license verification.
    • Requires terms of service to disclose license status and verify licenses via a lookup.
    • Mandates a reporting mechanism with confirmation, updates, and final determination.
    • Imposes liability for unlawful paid ads with penalties and defenses; operative July 1, 2026.

    Summary

    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.

    Key Dates

    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Unfinished Business SB378 Wiener Concurrence
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Unfinished Business SB378 Wiener Concurrence
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    SB 378 Wiener Senate Third Reading By Aguiar-Curry
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Privacy And Consumer Protection Hearing
    Assembly Committee
    Assembly Privacy And Consumer Protection Hearing
    Do pass and be re-referred to the Committee on [Judiciary]
    Assembly Business And Professions Hearing
    Assembly Committee
    Assembly Business And Professions Hearing
    Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Senate 3rd Reading SB378 Wiener
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass as amended
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Scott WienerD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 1 row(s) selected.
    Page 1 of 1
    Select All Legislators
    Profile
    Scott WienerD
    Senator
    Bill Author

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Scott Wiener
    Scott WienerD
    California State Senator
    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/13/2025)

    Latest Voting History

    View History
    September 13, 2025
    PASS
    Senate Floor
    Vote on Senate Floor
    AyesNoesNVRTotalResult
    320840PASS

    Key Takeaways

    • Creates online cannabis and hemp marketplace regimes with license verification.
    • Requires terms of service to disclose license status and verify licenses via a lookup.
    • Mandates a reporting mechanism with confirmation, updates, and final determination.
    • Imposes liability for unlawful paid ads with penalties and defenses; operative July 1, 2026.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Scott Wiener
    Scott WienerD
    California State Senator

    Summary

    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.

    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/13/2025)

    Key Dates

    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Unfinished Business SB378 Wiener Concurrence
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Unfinished Business SB378 Wiener Concurrence
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    SB 378 Wiener Senate Third Reading By Aguiar-Curry
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Privacy And Consumer Protection Hearing
    Assembly Committee
    Assembly Privacy And Consumer Protection Hearing
    Do pass and be re-referred to the Committee on [Judiciary]
    Assembly Business And Professions Hearing
    Assembly Committee
    Assembly Business And Professions Hearing
    Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Senate 3rd Reading SB378 Wiener
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass as amended
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Introduced
    Senate Floor
    Introduced
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Latest Voting History

    View History
    September 13, 2025
    PASS
    Senate Floor
    Vote on Senate Floor
    AyesNoesNVRTotalResult
    320840PASS

    Contacts

    Profile
    Scott WienerD
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 1 row(s) selected.
    Page 1 of 1
    Select All Legislators
    Profile
    Scott WienerD
    Senator
    Bill Author