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California Bill Aimed at "Big Cannabis" Marketing Could Also Affect Small Businesses

If SB162 passes, it could be the most restrictive in the country.


State Sen. Ben Allen, D-Santa Monica, is the sponsor of SB162, which would prohibit licensed cannabis businesses from selling or giving away promotional hats, T-shirts or any branded merchandise that bears the name or logo of a cannabis company or product.

Allen and his allies say the bill, which in May passed the Senate in a 40-0 vote, is meant to protect children from potentially harmful marketing practices. But for some whose businesses would be affected, the bill is seen as quashing free speech.

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STATE BY STATE: California Cannabis News

“It’s ridiculous,” said Patrick Woods, co-owner of Lightningbug Branding, a Seattle maker of promotional products primarily for the cannabis industry, including several customers in California. “This tells small businesses that they can’t advertise or promote themselves.”

Allen said he’s sympathetic to small businesses, but that his bill isn’t directed at them. Instead, he said, it’s focused on “Big Cannabis” — larger corporate entities expected to enter the legalized marijuana business. With the onset of recreational-use sales next year, Allen said, he anticipates such manufacturers and retailers may introduce marketing schemes that could appeal to children, such as a mascot like Joe Camel, a cartoon character that for years served as the mascot for Camel cigarettes.

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