CBD business lawyer

April 16, 2023

Breakdown of U.S. Rules for CBD Cosmetics by L.A. Cannabis Business Lawyer

Although it didn’t get a lot of splashy coverage when it first passed, the gargantuan appropriations bill signed by the president at the end of last year contained a piece of legislation that has some significant potential for expansion of the cannabis cosmetics industry. Los Angeles CBD business

The Modernization of Cosmetics Regulation Act of 2022 (better known as MOCRA), it’s the first time cosmetic rules have been updated by Congress through the Federal Food, Drug, & Cosmetics Act since it was passed in 1938. Other aspects of the law have been updated many times over as we’ve seen evolutions of technology, science, product safety, and responsible resourcing advocacy. Still, none of those expressly addressed makeup laws until MOCRA.

Prior to these changes, makeup companies didn’t legally have to test their products or the individual ingredients to ensure safety. Businesses didn’t have to register their production facilities with the FDA, abide by good manufacturing practice rules, or notify the government when there are adverse reactions (even life-threatening ones). Additionally, the FDA didn’t have the power to recall cosmetic products – even those that could be deadly. MOCRA rectifies all this and grants the FDA authority to oversee regulation of makeup products. (Small businesses may be exempt from certain requirements, depending on the specific circumstances.)

Cosmetics are defined not just as makeup, but those products intended for application to human bodies for cleaning, beautifying, altering appearance, or promoting attractiveness. Any product that promises to treat or prevent a condition or disease or alters some bodily function is classified as a “drug” by the FDA. It’s worth noting that CBD products can fall into both categories, but we’re specifically here just talking about CBD-infused cosmetics – though many do promise anti-inflammatory properties. These can include products like:

Lip balm and lip gloss
Moisturizers
Under eye serums
Hair creams
Scalp oil
Skin cleansers
Face masks
Deodorant
Mouthwash
Concealer/color corrector
Mascara

What Does This Mean for CBD Cosmetics Companies?

May 28, 2022

Can California CBD Retailers Carve a Lasting Competitive Advantage?

By Cannabis Law Group

CBD business operators currently have a sizeable economic advantage when it comes to their high-THC cannabis/extract counterparts. Thanks to the 2018 Farm Bill, their operations are legal, (in many jurisdictions) lightly taxed, and available through online sales. California CBD business

But what will it mean for the CBD side of things when/if marijuana products of all (or at least higher) THC levels becomes legal? Specifically, we’re talking about legalization of recreational marijuana. Here in California, as well as in 17 other states, Washington, D.C. and Guam, that’s already the reality. Yet CBD businesses continue not only to operate, but to thrive.

Our CBD business lawyers recognize the retail landscape may inevitably shift once recreational marijuana becomes legal, but we also believe in the strong likelihood the two can co-exist. Not everyone wants high-THC products – specifically in the realm of pet products, beauty topicals, and cosmetics. Plus, there are a fair number of people who aren’t heavy users of THC, but may still want to indulge occasionally in a way that is safe.

Recent analysis reveal that the legal recreational marijuana market dwarfs the CBD market – $50 billion to $8 billion. Still, neither sector’s size is anything to sneeze at.

In shops that sell high-THC cannabis products, CBD product sales have fallen in recent years (at least so far as California goes). But it’s our theory that when adult use recreational marijuana becomes legal, there will be an increase in sales for both – particularly in mature markets. Continue reading

May 3, 2022

California CBD Regulations Imminent

By Cannabis Law Group

For years, the State of California dragged its heels on regulating hemp-derived CBD. Numerous legislative efforts had failed time-and-again – until last year, with the passage of AB-45, signed by Gov. Gavin Newsom, which allowed for the inclusion of hemp and CBD extracts in food, beverages, cosmetics, dietary supplements, processed pet foods and more – assuming they contained less than 0.3% THC. However, nothing has really happened since – until now. Just a few days ago, the California Department of Public Health (CDPH) has proposed emergency regulations – mostly dealing with registration for industrial hemp manufacturers. California CBD lawyer

As our Los Angeles CBD business attorneys can explain, the key points in the emergency action are as follows:

Hemp product manufacturers will be granted different types of registrations, licenses, and/or authorizations from the CDPH, depending on the type of product they make. Those that make many different types of hemp/CBD products may need numerous registrations.
Out-of-state hemp/CBD manufacturers that want to import products to California will need to register with the CDPH.
“Enrollment and oversight authorization” is required at each location, lasts one year, and cannot be transferred.
Applicants requesting oversight authorization must provide detained information about not only the type of product, but its sources, extract methods, etc. These must be signed under penalty of perjury.
Fees are based on gross revenue accrued in the 12 months prior. New applicants will need to estimate their fees, and the formulas for calculating them are a bit complex. The fee structures for CBD product types and extract manufacturers are different.

These are just the primary points of the emergency action. It’s imperative that anyone in the CBD business or hemp business in California consult with their business attorney to make sure all registration, oversight, and licensure paperwork is properly drafted and timely submitted. Continue reading

April 1, 2019

New “Magic Beans”? Jelly Belly Inventor Releases CBD-Infused Line

By Cannabis Law Group

The inventor of Jelly Belly jellybeans, through his new brand Spectrum Confections, now offers a line of the confection that comes infused with cannabidiol, or CBD. But whether these beans prove “magic” for the company’s sales, they definitely won’t get you as high as giant beanstalk. Los Angeles CBD business lawyers know the real question is whether the company will be able to legally sell them, even in states like California where marijuana is legal for recreational users. Los Angeles CBD lawyer

The Skinny on CBD Food and Drinks in California

Although California regulators have deferred to the U.S. Food & Drug Administration’s hard-line stance on CBD as a food or supplement additive (underscoring the prohibition on CBD-laced foods even after the passage of the 2018 Farm Bill, which legalized industrial hemp), there are indications we could soon see a shifting tide. In February, the FDA commissioner told Congressional leaders the agency may consider eventually allowing food infusions of diluted CBD with low-THC (tetrahydrocannabidinol – the cannabis compound with psychoactive effects). There is no guarantee on when that might be, though. Continue reading

January 21, 2019

CBD-Only Shops Cropping Up in California, Even in Cities Where Cannabis is Banned

By Cannabis Law Group

Standalone CBD shops – those selling oils or other products made solely from cannabidiol (a chemical compound found in the cannabis plant that does not contain the psychoactive elements of THC) – are not expansive in California, but they have gained footing in some cities that have otherwise banned full marijuana dispensaries. They are also proving popular options in states where the drug itself may not yet be legal, particularly in light of the recent passage of the federal Farm Bill, which included provisions that legalized hemp, from which CBD oil can be obtained. L.A. CBD business attorney

Los Angeles CBD shop attorneys understand that while these little stores are outnumbered by the full-service cannabis dispensaries in the city hundreds-to-one, these store owners say they were drawn to the business primarily for the health benefits and variety of products (salves, tinctures, creams, edibles, soft gels, tinctures and more), but also for the reduced legal risk and ease in securing insurance and funding. One in L.A., for instance, sells only hemp-made CBD oil expressly for this purpose Shops that sell only CBD aren’t required to have the pricey licensing, as is required by legal cannabis dispensaries in California.

Such stores have also opened in Missouri, Texas, Kansas, Arkansas, North Carolina, Minnesota, Louisiana, Florida, Georgia, Mississippi and Ohio. What the Farm Bill, signed in December by the president, did was remove hemp from the list of controlled substances, allowing states to freely allow permanent cultivation programs, and farmers can be eligible for crop insurance and grants. Continue reading