On September 6, California Governor Gavin Newsome introduced the framework of his emergency ban on intoxicating hemp products in the Golden State. What would be an industry-strangling measure, Newsome cited that the ban is to protect California residents, primarily children, from the potential risk of unregulated intoxicants. The products that are subject to a ban are any products that contain THC, including Delta-8.
A highlighted concern that led to the provision was that these products are not federally regulated, this is not entirely what this country needs at the moment. Many within the industry, including the U.S. Hemp Roundtable, argue that the issue stems from inadequate enforcement of existing state regulations. Jonathan Miller stated, “California’s own law allows intoxicating hemp products and Delta-8 products to be regulated and sold.”
While the desire and need for federal regulation in the hemp industry is there, enforcement of the current laws has been limited. WAAVE strongly believes this ban highlights an enforcement failure rather than a regulatory gap. WAAVE’s approach is aligned with the U.S. Hemp Roundtable, asserting that states should hold their enforcement agencies accountable for proactive enforcement. With compliance checks integrated at the transaction level, WAAVE’s mission is to prevent merchants from needing enforcement by ensuring regulatory adherence from the start.
Our industry is at risk, in the past CA measures have served as a blueprint for other states to implement regulations. The state was the initial model for the redefinition of THC in contradiction with the 2018 Farm Bill that was adopted across multiple states that had legalized cannabis. So this measure has the potential to spread across the country and it is up to us, the industry, to work together to mitigate the risk.
As a seller, following the regulations ensures no additional more aggressive rules are implemented. WAAVE exists to assist you in doing so, our tech was designed to lessen the compliance burden on all merchants. If you believe this is important for the survival of your business, believe us when we say it is paramount to the survival of the industry in general.
We encourage all merchants to be proactive at being compliant but also demand other sellers are compliant too. Help advocate for compliance so no more regulations are implemented and you and your peers never have to experience any crippling enforcement measures. If we all play under the same set of rules we can thrive and show the government that we can self-police the industry, protecting businesses and consumers alike
For more details on the ban, visit Forbes.
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