Chapter 15Advertising and Marketing Restrictions

Section § 26150

Explanation

This section defines key terms related to advertising and marketing of cannabis products. 'Advertise' refers to spreading ads, while an 'Advertisement' includes anything aimed to boost cannabis sales, except official labels and unpaid editorial content. 'Advertising sign' describes promotional displays for cannabis products offsite from where they are produced or sold. A 'Health-related statement' covers claims suggesting health benefits from cannabis. Lastly, 'Market' or 'Marketing' involves any activity to promote or sell cannabis, like event sponsorships or targeted advertising.

For purposes of this chapter:
(a)CA Business and Professions Code § 26150(a) “Advertise” means the publication or dissemination of an advertisement.
(b)CA Business and Professions Code § 26150(b) “Advertisement” includes any written or verbal statement, illustration, or depiction which is calculated to induce sales of cannabis or cannabis products, including any written, printed, graphic, or other material, billboard, sign, or other outdoor display, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include:
(1)CA Business and Professions Code § 26150(b)(1) Any label affixed to any cannabis or cannabis products, or any individual covering, carton, or other wrapper of that container that constitutes a part of the labeling under provisions of this division.
(2)CA Business and Professions Code § 26150(b)(2) Any editorial or other reading material, such as a news release, in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any licensee, and which is not written by or at the direction of the licensee.
(c)CA Business and Professions Code § 26150(c) “Advertising sign” is any sign, poster, display, billboard, or any other stationary or permanently affixed advertisement promoting the sale of cannabis or cannabis products which are not cultivated, manufactured, distributed, or sold on the same lot.
(d)CA Business and Professions Code § 26150(d) “Health-related statement” means any statement related to health, and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of cannabis or cannabis products and health benefits, or effects on health.
(e)CA Business and Professions Code § 26150(e) “Market” or “Marketing” means any act or process of promoting or selling cannabis or cannabis products, including, but not limited to, sponsorship of sporting events, point-of-sale advertising, and development of products specifically designed to appeal to certain demographics.
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(Amended by Stats. 2017, Ch. 27, Sec. 84. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26151

Explanation

This law requires all advertisements and marketing to clearly include the license number of the responsible licensee. Online platforms and outdoor ads must also display this license number. Advertisements can only run where most of the audience is expected to be over 21. Any direct communication ads must verify the recipient's age is over 21 using methods like asking for a birth date. All ads must be truthful and properly backed up with evidence.

(a)Copy CA Business and Professions Code § 26151(a)
(1)Copy CA Business and Professions Code § 26151(a)(1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content, by adding, at a minimum, the licensee’s license number.
(2)CA Business and Professions Code § 26151(a)(2) A technology platform shall not display an advertisement by a licensee on an Internet Web page unless the advertisement displays the license number of the licensee.
(3)CA Business and Professions Code § 26151(a)(3) An outdoor advertising company subject to the Outdoor Advertising Act (Chapter 2 (commencing with Section 5200) of Division 3) shall not display an advertisement by a licensee unless the advertisement displays the license number of the licensee.
(b)CA Business and Professions Code § 26151(b) Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data.
(c)CA Business and Professions Code § 26151(c) Any advertising or marketing involving direct, individualized communication or dialogue controlled by the licensee shall utilize a method of age affirmation to verify that the recipient is 21 years of age or older before engaging in that communication or dialogue controlled by the licensee. For purposes of this section, that method of age affirmation may include user confirmation, birth date disclosure, or other similar registration method.
(d)CA Business and Professions Code § 26151(d) All advertising shall be truthful and appropriately substantiated.
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(Amended by Stats. 2017, Ch. 27, Sec. 85. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26152

Explanation

This California law outlines what people involved in selling cannabis, whether or not they are licensed, cannot do when advertising. They must be truthful and not misleading in their ads, meaning they can't use confusing language or false claims about their products. Ads must match the product's label and can't falsely suggest where the cannabis comes from unless that's on the label. They also can't advertise on highways that cross state lines, gear ads towards youngsters, or place ads near schools, daycares, or youth centers. Additionally, cannabis ads should not be appealing to kids, and businesses can't advertise if they don't have a license or if their license is suspended.

A person engaged in commercial cannabis activity, whether licensed or unlicensed, shall not do any of the following:
(a)CA Business and Professions Code § 26152(a) Advertise or market in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter, tends to create a misleading impression.
(b)CA Business and Professions Code § 26152(b) Publish or disseminate advertising or marketing containing any statement concerning a brand or product that is inconsistent with any statement on the labeling thereof.
(c)CA Business and Professions Code § 26152(c) Publish or disseminate advertising or marketing containing any statement, design, device, or representation which tends to create the impression that the cannabis originated in a particular place or region, unless the label of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement.
(d)CA Business and Professions Code § 26152(d) Advertise or market on a billboard or similar advertising device located on an interstate highway or on a state highway which crosses the California border.
(e)CA Business and Professions Code § 26152(e) Advertise or market cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products.
(f)CA Business and Professions Code § 26152(f) Publish or disseminate advertising or marketing that is attractive to children.
(g)CA Business and Professions Code § 26152(g) Advertise or market cannabis or cannabis products on an advertising sign within 1,000 feet of a daycare center, school providing instruction in kindergarten or any of grades 1 to 12, inclusive, playground, or youth center.
(h)CA Business and Professions Code § 26152(h) Publish or disseminate advertising or marketing for unlicensed commercial cannabis activity or for licensed commercial cannabis activity while the licensee’s license is suspended.
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(Amended by Stats. 2024, Ch. 899, Sec. 1. (SB 1498) Effective January 1, 2025. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26152.1

Explanation

This law sets rules for advertising cannabis vaporizers and cartridges, requiring them to include clear warnings about proper disposal as hazardous waste. Ads can't suggest these items are simply disposable or recyclable. These rules take effect on July 1, 2024.

(a)Copy CA Business and Professions Code § 26152.1(a)
(1)Copy CA Business and Professions Code § 26152.1(a)(1) Advertisement and marketing of an integrated cannabis vaporizer, as defined in Section 26122, shall prominently provide in a clear and legible fashion: “An empty integrated cannabis vaporizer shall be properly disposed of as hazardous waste at a household hazardous waste collection facility or other approved facility.”
(2)CA Business and Professions Code § 26152.1(a)(2) Advertisement and marketing of a cannabis cartridge shall prominently provide in a clear and legible fashion: “A spent cannabis cartridge shall be properly disposed of as hazardous waste at a household hazardous waste collection facility or other approved facility.”
(3)CA Business and Professions Code § 26152.1(a)(3) For the purposes of this subdivision, “authorized facility” means a facility authorized under the hazardous waste control laws under Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code.
(b)CA Business and Professions Code § 26152.1(b) Advertisement and marketing of a cannabis cartridge and an integrated cannabis vaporizer shall not indicate that a cannabis cartridge or an integrated cannabis vaporizer is disposable nor imply that it may be thrown in the trash or recycling streams.
(c)CA Business and Professions Code § 26152.1(c) This section shall become operative on July 1, 2024.
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(Added by Stats. 2022, Ch. 390, Sec. 3. (AB 1894) Effective January 1, 2023. Operative July 1, 2024, by its own provisions.)

Section § 26152.2

Explanation

This law allows the Attorney General, city attorneys, or county counsel to take legal action against violations related to certain cannabis and industrial hemp regulations. If they win, they can get court orders to stop the violations and may receive attorney’s fees and costs, plus civil penalties. These penalties can rise up to $5,000 for licensed businesses and up to $30,000 for unlicensed ones. The court will consider factors like the seriousness of the violation and any previous misconduct when deciding penalties. The same defendant cannot be sued more than once for similar advertising issues, unless they repeatedly commit the violations after a legal finding. Remedies here are in addition to other state laws, and this section doesn’t interfere with other authorities the Attorney General or local officials may have.

(a)CA Business and Professions Code § 26152.2(a) The Attorney General, on behalf of the people, a city attorney, or a county counsel may bring and maintain an action to redress a violation of subdivisions (d), (e), (f), and (g) of Section 26152, or subdivision (b) of Section 111926 of the Health and Safety Code.
(b)Copy CA Business and Professions Code § 26152.2(b)
(1)Copy CA Business and Professions Code § 26152.2(b)(1) The Attorney General, a city attorney, or a county counsel who prevails in an action pursuant to this section shall be awarded injunctive relief.
(2)CA Business and Professions Code § 26152.2(b)(2) The Attorney General, a city attorney, or a county counsel may also be awarded either or both of the following:
(A)CA Business and Professions Code § 26152.2(b)(2)(A) Reasonable attorney’s fees and costs.
(B)CA Business and Professions Code § 26152.2(b)(2)(B) Civil penalties of not more than five thousand dollars ($5,000) per violation by a licensed cannabis business or an industrial hemp registrant and not more than thirty thousand dollars ($30,000) per violation by an unlicensed cannabis business or an unregistered business engaged in the sale of products that contain industrial hemp.
(3)CA Business and Professions Code § 26152.2(b)(3) The remedies provided in this section shall be in addition to any other remedies otherwise provided in any other law.
(c)CA Business and Professions Code § 26152.2(c) In determining whether to award reasonable attorney’s fees and costs and civil penalties, and in assessing the amount of any civil penalty, the court shall consider factors the court determines to be relevant, including, but not limited to, the following:
(1)CA Business and Professions Code § 26152.2(c)(1) The gravity of the violation.
(2)CA Business and Professions Code § 26152.2(c)(2) The defendant’s good faith, or lack thereof.
(3)CA Business and Professions Code § 26152.2(c)(3) The defendant’s history of previous violations.
(d)CA Business and Professions Code § 26152.2(d) Civil penalties awarded in an action brought pursuant to this section shall be distributed as described in subdivision (d) of Section 26038.
(e)Copy CA Business and Professions Code § 26152.2(e)
(1)Copy CA Business and Professions Code § 26152.2(e)(1) Except as provided in paragraph (2), a defendant shall not be subject to more than one action pursuant to this section in connection with the same, or substantially similar, advertising or marketing.
(2)CA Business and Professions Code § 26152.2(e)(2) This subdivision does not prohibit a subsequent action pursuant to this section to redress a recurring or continuing violation of Section 26152 or of Section 111926 of the Health and Safety Code, after the defendant has previously been found to have engaged in the same violation of Section 26152 or of Section 111926 of the Health and Safety Code or a substantially similar violation. Such an action may be brought and maintained if all of the following conditions are satisfied:
(A)CA Business and Professions Code § 26152.2(e)(2)(A) The defendant has previously been found, in an action pursuant to this section, to have violated one or more subdivisions of Section 26152 or subdivision (b) of Section 111926 of the Health and Safety Code.
(B)CA Business and Professions Code § 26152.2(e)(2)(B) The defendant subsequently engages in the same advertising or marketing, or substantially similar advertising or marketing, that was previously found to violate Section 26152 or subdivision (b) of Section 111926 of the Health and Safety Code.
(C)CA Business and Professions Code § 26152.2(e)(2)(C) The subsequent action is limited to advertising or marketing that occurred after entry of judgment in the prior action.
(f)Copy CA Business and Professions Code § 26152.2(f)
(1)Copy CA Business and Professions Code § 26152.2(f)(1) The causes of action, remedies, and penalties provided by this section are cumulative to each other and to the causes of action, remedies, and penalties available under all other laws of this state.
(2)CA Business and Professions Code § 26152.2(f)(2) This section shall not be construed to limit the availability of any cause of action, remedy, or penalty otherwise available under any other law of this state.
(g)Copy CA Business and Professions Code § 26152.2(g)
(1)Copy CA Business and Professions Code § 26152.2(g)(1) This section shall not be construed to limit or otherwise alter, in any way, any other authority conferred by law upon the Attorney General, the department, or any other state or local officer or agency.
(2)CA Business and Professions Code § 26152.2(g)(2) An action brought pursuant to this section shall not have preclusive effect upon the Attorney General, the department, or any other state or local officer or agency.
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(Added by Stats. 2024, Ch. 899, Sec. 2. (SB 1498) Effective January 1, 2025.)

Section § 26153

Explanation

This law says that cannabis businesses in California can't give away cannabis, cannabis products, or cannabis-related items for free as a way to promote their business or as part of any commercial activity. However, if a licensed provider gives cannabis to a medical patient or their caregiver, as described in other specific laws, it's not considered a promotion or commercial activity.

(a)CA Business and Professions Code § 26153(a) A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis accessories, as part of a business promotion or other commercial activity.
(b)CA Business and Professions Code § 26153(b) For purposes of this section, the donation of cannabis or cannabis products by a licensee to a patient or the primary caregiver of a patient pursuant to Section 26071 shall not be considered a business promotion or other commercial activity.
(c)CA Business and Professions Code § 26153(c) For purposes of this section, the provision of cannabis or cannabis products by a licensee pursuant to Section 26153.1 shall not be considered a business promotion or other commercial activity.
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(Amended by Stats. 2021, Ch. 70, Sec. 75. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26153.1

Explanation

This law directs the Department of Cannabis Control to create rules for how cannabis businesses can label and manage "trade samples." Trade samples are samples of cannabis given to other businesses for advertising purposes and must meet certain testing and labeling requirements. They cannot be sold or given in exchange for anything and must be tracked and labeled properly. Regulations will define what a trade sample is, how much can be distributed, and how it can be transported between licensees. Trade samples can only be used for business-to-business marketing and must comply with existing laws for quality and safety, becoming effective no later than January 1, 2023.

(a)CA Business and Professions Code § 26153.1(a) The Department of Cannabis Control shall adopt regulations to establish a process authorizing licensees to designate cannabis or cannabis products as a trade sample at any time while the cannabis or cannabis product is in the possession of the licensee.
(b)CA Business and Professions Code § 26153.1(b) The department shall adopt regulations to establish a definition of trade sample, the quantity of cannabis and cannabis products that may be designated as trade samples, the amount of trade samples that may be provided to a licensee, and any other provisions necessary to implement this section.
(c)CA Business and Professions Code § 26153.1(c) Cannabis or cannabis products designated as trade samples shall be subject to quality assurance and testing pursuant to Section 26110, and may be returned to cultivators and manufacturers following quality assurance and testing pursuant to Section 26110.
(d)CA Business and Professions Code § 26153.1(d) Cannabis or cannabis products designated as trade samples shall be recorded into the track and trace program established pursuant to Section 26067.
(e)CA Business and Professions Code § 26153.1(e) Cannabis or cannabis products designated as trade samples shall be labeled with the following: “TRADE SAMPLE. NOT FOR RESALE OR DONATION.”
(f)CA Business and Professions Code § 26153.1(f) Cannabis or cannabis products designated as trade samples shall only be given for targeted advertising to licensees about new or existing cannabis or cannabis products. The department may adopt regulations specifying additional purposes of trade samples.
(g)CA Business and Professions Code § 26153.1(g) Cannabis or cannabis products designated as trade samples may be transported between any two licensees by an employee of a licensed distributor or microbusiness authorized to engage in distribution, or by a licensee authorized to engage in transportation of cannabis, including a distributor transport-only licensee as established by the department in regulation. Employees transporting trade samples pursuant to this subdivision but outside of a registered vehicle of the licensed distributor or microbusiness shall be subject to possession limits established in Section 11357 of the Health and Safety Code.
(h)CA Business and Professions Code § 26153.1(h) Cannabis and cannabis products designated as trade samples shall not be provided for any form of payment, consideration, cost, or compensation.
(i)CA Business and Professions Code § 26153.1(i) Except as otherwise provided in this section, cannabis and cannabis products designated as trade samples shall comply with all applicable requirements for cultivation, manufacturing, distribution, processing, storing, laboratory testing, quality assurance, packaging, or labeling under this division.
(j)CA Business and Professions Code § 26153.1(j) This section shall become effective upon adoption of regulations by the department and no later than January 1, 2023.
(k)CA Business and Professions Code § 26153.1(k) Notwithstanding any other law, the department may adopt and readopt emergency regulations to implement this section. The provisions of Section 26013 shall be applicable to emergency regulations adopted or readopted pursuant to this section. The emergency regulations authorized by this section shall be deemed an emergency and necessary for the immediate preservation of public peace, health, safety or general welfare.
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(Amended (as added by Stats. 2021, Ch. 70, Sec. 76) by Stats. 2021, Ch. 87, Sec. 6. (SB 160) Effective July 16, 2021. Operative on or before January 1, 2023, by its own provisions.)

Section § 26154

Explanation

If you're selling cannabis in California, you can't put any false or misleading health claims on labels or in ads. This means nothing on the packaging or marketing can suggest health benefits unless they are true and not misleading in any way.

A licensee shall not include on the label of any cannabis or cannabis product or publish or disseminate advertising or marketing containing any health-related statement that is untrue in any particular manner or tends to create a misleading impression as to the effects on health of cannabis consumption.
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(Amended by Stats. 2017, Ch. 27, Sec. 88. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26155

Explanation

This law allows licensed businesses to put up advertising signs inside their premises, as long as those signs can't be seen from outside by the public, and they don't promote cannabis use to people under 21. Also, the rules in this chapter don't affect noncommercial speech, meaning speech that doesn't have a financial motive.

(a)CA Business and Professions Code § 26155(a) The provisions of subdivision (g) of Section 26152 shall not apply to the placement of advertising signs inside a licensed premises and which are not visible by normal unaided vision from a public place, provided that such advertising signs do not advertise cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis products.
(b)CA Business and Professions Code § 26155(b) This chapter does not apply to any noncommercial speech.
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(Amended by Stats. 2017, Ch. 27, Sec. 89. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)

Section § 26156

Explanation
This section says that the same rules outlined in Section 5272 also apply here.
The requirements of Section 5272 apply to this division.
Section 5272 requirements application of rules specific division law reference consistency in rules legal applicability cross-referenced section legal standards rule alignment division compliance
(Added by Stats. 2017, Ch. 27, Sec. 90. (SB 94) Effective June 27, 2017.)