Common Compliance Mistakes

The Bureau of Cannabis Control has specific compliance requirements for all marijuana-related businesses. Everything from the packaging to delivery is required for following licensing specifications. Businesses that do not adhere to these can have their license suspended or even revoked. Could your business be at risk?

Here are common compliance mistakes many of our clients come to us with.

Operating Without a License

Cannabis businesses running without proper licenses in California are quickly being removed from the market to make room for legitimate operations. However, some businesses fall out of compliance without realizing it. It could be due to an update in the Cannabis Laws or even a lapse on their license renewal. In some cases, a suspended or revoked license is caused by working with another nonlicensed company. Do you know if your business partners have the correct licenses? If not, you could be putting your license and livelihood at risk.

Marketing False Claims

Marketing in the Cannabis industry can be a difficult area for many businesses to navigate. Whether it’s digital advertising such as social media and website or printed material like flyers and posters, all of these pieces my comply with not only with Cannabis laws, but also California’s robust Consumer Protection laws. Are you making unsupported claims about your business or industry? Are you inadvertently marketing to minors? If you are concerned about any of these questions, you want to seek professional counsel from lawyers like those at Unlock Legal.

Changing to Your Business Plan

When applying for a Cannabis license, you are required to provide meticulous details to exactly how your business will run. You must provide a detailed floor plan that with specific areas identified. Once your license is approved, and your business is up and running, it’s imperative to follow your proposal. Clients have come to us with suspended licenses because they have made changes to their business structure. When we compared their current business plan with their proposed plan, we found major changes that needed review by the licensing board. If you are an investor or business owner, avoid this risk to your license by consulting with our team before you make any changes.

Engaging in Nonlicensed Activity

The Cannabis market is flooded with businesses. Although many of these operations are functioning within the law, many more are not. No matter what type of license you hold, you are most certainly working with another business in the distribution chain. If any other those businesses you work with do not have the proper licenses, your license is at risk.  Contact Unlock Legal. We can help you navigate the crowded industry and ensure your license is protected.

Do you need help finding and resolving cannabis compliance and regulatory issues before your license is questioned?  We can help.  Give us a call at 949-268-2857.

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