§ 22943.2. — 22943.2. (Added by Stats. 2025, Ch. 411, Sec. 2.)

(a)
An online cannabis marketplace shall address in its terms of service both of the following:
(1)
Whether the online cannabis marketplace permits advertisements from, or business information about, unlicensed sellers of cannabis or cannabis products to be viewed by Californians on its marketplace.
(2)
Whether the online cannabis marketplace verifies that a seller of cannabis or cannabis products has a valid, unexpired license by consulting the license look-up function on the Department of Cannabis Control’s internet website established pursuant to Section 26012.5 before displaying, storing, or hosting the
seller’s advertisements or business information in a manner that is viewable to Californians.
(b)
(1)
An online cannabis marketplace shall establish a clear and conspicuous mechanism within its internet-based service that allows any individual, whether or not that individual has a profile on the internet-based service or is a user, to report to the online cannabis marketplace the display, storing, or hosting on the marketplace of advertisements from, or business information about, an unlicensed seller of cannabis or cannabis products.
(2)
The mechanism required by this subdivision shall meet all of the following criteria:
(A)
The mechanism shall allow, but not require, an individual to do both of the
following:
(i)
Upload a screenshot of the content that offers evidence of advertisements from, or business information about, the unlicensed seller on the marketplace.
(ii)
Provide the marketplace with basic identifying information, such as an account identifier or URL, sufficient to permit marketplace to locate the reported material.
(B)
The mechanism shall include, but not be limited to, a method for the marketplace to contact a reporting individual in writing, including a telephone number for purposes of sending text messages, an email address, or another reasonable electronic method of communication.
(C)
The mechanism shall provide, within 36 hours of
receipt of a report, a written confirmation to the reporting individual that the marketplace has received that individual’s report.
(D)
(i)
The mechanism shall provide periodic written updates to the reporting individual as to the status of the marketplace’s handling of the reported material using the method of communication pursuant to subparagraph (B).
(ii)
The first written update required by clause (i) shall be provided as soon as reasonably feasible but no later than 14 days after the date on which the written confirmation required under subparagraph (C) is provided. Subsequent written updates shall be provided as soon as reasonably feasible but no later than 14 days after the most recent written update provided pursuant to this clause, until the final
written determination required by subparagraph (F).
(E)
Each report shall receive a review by a natural person.
(F)
(i)
The mechanism shall issue a final written determination to the reporting individual within 30 days of receiving the report. The final written determination shall state one of the following:
(I)
The report has provided evidence that an advertisement from, or business information about, an unlicensed seller of cannabis or cannabis products was displayed, stored, or hosted on the marketplace and the seller’s advertisements and business information have been blocked from being viewable on the marketplace.
(II)
The report has
provided evidence that an advertisement from, or business information about, an unlicensed seller of cannabis or cannabis products was or is displayed, stored, or hosted on the marketplace and the seller’s advertisements and business information will not be blocked from being viewable on the marketplace. The final written determination issued pursuant to this subclause shall also state that the marketplace acknowledges that it is aware that the seller is unlicensed and whether the marketplace has referred the report to a law enforcement agency. If the marketplace has referred the report to a law enforcement agency, the final written determination shall provide a true and correct copy of the report that the marketplace made to the law enforcement agency.
(III)
The report lacks evidence that the identified seller of cannabis or cannabis
products who was or is displayed, stored, or hosted on the marketplace is unlicensed and the seller’s advertisements and business information will not be blocked from being viewable on the marketplace.
(IV)
The report lacks evidence that the identified seller of cannabis or cannabis products whose advertisement or business information was or is displayed, stored, or hosted on the marketplace is unlicensed and the seller’s advertisements and business information will be blocked from being viewable on the marketplace for reasons unrelated to the seller’s licensing status.
(V)
The report lacks evidence that an advertisement or business information of a seller of cannabis or cannabis products was displayed, stored, or hosted on the marketplace.
(ii)
If the marketplace cannot comply with clause (i) within 30 days due to circumstances beyond the reasonable control of the marketplace, the marketplace shall comply with clause (i) no later than 60 days after the date on which the report was received. If this clause applies, the marketplace shall promptly provide written notice of the delay, no later than 48 hours from the time the marketplace knew the delay was likely to occur, to the reporting individual.
(c)
This section shall not be interpreted to prohibit any individual from reporting activity by an unlicensed seller of cannabis or cannabis products without the use of the mechanism established in subdivision (b).
(d)
(1)
Any online cannabis marketplace that violates a requirement of this
section shall be liable for a civil penalty of not more than ten thousand dollars ($10,000) for each violation and for compensatory damages, punitive damages, and any civil remedies, penalties, or sanctions for harms caused by the marketplace’s failure to comply with this chapter, which damages shall be adjudicated and awarded apart from any harms attributable to the existence of the reported content alone.
(2)
Any person may bring an action to enforce this section. In addition to other equitable relief, the court may order injunctive relief to obtain compliance with this section and shall award reasonable attorney’s fees and costs to the prevailing plaintiff.
(3)
A person shall not bring an action to enforce
paragraph (2) of subdivision (b) if the marketplace, upon receipt of the advertisement or business information through the mechanism, removes the reported advertisement or business information within 48 hours.
(4)
It is not a violation of paragraph (2) of subdivision (b) if the marketplace, upon receipt of the report, removes the reported advertisement or business information within 48 hours.
(5)
Each day an online cannabis marketplace is in violation of a requirement of this section constitutes a separate violation.
(e)
The duties and obligations imposed by this section are cumulative with any other duties or obligations imposed under other law and shall not be construed to relieve any party from any duties or obligations imposed under other law.

Legislative History

Added by Stats. 2025, Ch. 411, Sec. 2. (SB 378) Effective January 1, 2026. Operative July 1, 2026, pursuant to Section 22943.6.