Calif. law seeks to tame CBD market

By Alex Halperin
Oct 7, 2021

A new law signed by California Gov. Gavin Newsom (D) could go a long way to normalizing the CBD market nationwide.

While the 2018 Farm Bill legalized hemp, the booming, multi-billion dollar CBD market remains unregulated. So while CBD is sold outside state dispensary markets, products are often mislabeled and untested. Despite pressure from mainstream CPG companies, the FDA has declined to regulate CBD as a dietary supplement. 
Food Business News, East Bay Express

  • The California law legalizes CBD in dietary supplements, foods, drinks and cosmetics, but with strict testing and labelling guidelines, akin to those now in place for cannabis. 
    Natural Products Insider
  • It could fill the void left by the FDA since anyone seeking to sell CBD in the country’s largest health and wellness market will have to comply. The law applies to all CBD imports and allows state officials to inspect out of state sites. 
  • California accounted for $730M in CBD sales in 2019, and almost certainly climbed  during the pandemic.
  • The state department of health anticipates it will take several months to write more specific regulations and open the market.
  • The law also bans THC, and Delta-8 THC from CBD products making California the 19th state to restrict or ban it and similar compounds.
  • The law did not include an earlier provision which would ban smokable hemp, but farmers may be hit by a several months wait before in-state sales can begin.
    Marijuana Moment