California is poised to enhance consumer protections in its cannabis industry with the implementation of Senate Bill 540 (SB 540), which introduces new regulations for labeling and educational materials. Signed into law on October 8, 2023, SB 540 requires the Department of Cannabis Control (DCC) to reevaluate current health warnings and develop a new consumer-focused educational brochure by early 2025. These changes to California cannabis laws aim to address gaps in public awareness of cannabis-related risks while incorporating the latest scientific research.

Improved Warnings on Cannabis Products

Under SB 540, the DCC must reassess existing cannabis product labeling by July 1, 2025, to ensure it reflects the latest scientific understanding of cannabis risks. These labels currently provide basic safety warnings, but the updates will incorporate more nuanced insights about health risks, such as the impact of high-potency THC, potential exacerbation of mental health conditions, and risks for pregnant and breastfeeding individuals.

The legislation requires ongoing updates every five years, starting in 2030, to ensure warnings remain aligned with scientific advancements. According to the bill, the DCC is also authorized to commission research to evaluate the effectiveness of these warnings in educating consumers.

Improved Warnings on Cannabis Products

Under SB 540, the DCC must reassess existing cannabis product labeling by July 1, 2025, to ensure it reflects the latest scientific understanding of cannabis risks. These labels currently provide basic safety warnings, but the updates will incorporate more nuanced insights about health risks, such as the impact of high-potency THC, potential exacerbation of mental health conditions, and risks for pregnant and breastfeeding individuals.

The legislation requires ongoing updates every five years, starting in 2030, to ensure warnings remain aligned with scientific advancements. According to the bill, the DCC is also authorized to commission research to evaluate the effectiveness of these warnings in educating consumers.

Educational Brochures for Consumers

A key component of SB 540 is the creation of a single-page brochure designed to educate consumers about safer cannabis use. The brochure, which must be available by January 1, 2025, will include information on:

• The pharmacological effects of cannabis.
• Risks associated with high-potency cannabis products.
• Cannabis use by minors.
• Potential health implications for pregnant and breastfeeding individuals.

Starting March 1, 2025, cannabis retailers and delivery services must prominently display the brochure at points of sale—both in person and online—and offer it to all first-time customers. To keep the content relevant, the brochure will be reviewed and updated every five years alongside labeling regulations.

Protecting Public Health by Adapting to a Changing Market

SB 540 builds on California’s broader efforts to regulate cannabis under Proposition 64 and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). By requiring periodic updates, the legislation ensures that both consumers and businesses adapt to evolving scientific knowledge and regulatory best practices.

The bill also includes a 12-month compliance period for products manufactured before new regulations take effect, giving businesses time to adjust to updated labeling and educational requirements without disrupting market operations.

The updates introduced by SB 540 aim to address gaps in public awareness about cannabis-related risks. By integrating the latest research into labeling and educational materials, California is setting a precedent for consumer safety in the cannabis industry. These measures are designed not only to inform consumers but also to reduce potential harms associated with cannabis use, particularly for vulnerable populations like youth and pregnant individuals.