California Retailer, Sunmed, Issues Statement on Emergency Hemp Regulations

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A retailer of hemp-derived cannabinoids, Sunmed | Your CBD Store (Los Angeles), an affiliate of Sunflora Inc., has issued a statement in response to recent regulations issued by Governor Gavin Newsom in California. If the regulations are put into effect, the presence of any THC would be prohibited from hemp-derived products, and age restrictions would be placed on all hemp-derived products. According to Sunmed, the regulations effectively make 95% of the retailer’s inventory illegal, depriving consumers of wellness products they trust and rely on to support their health, as well as putting retailers at risk of closure, including Sunmed.

The justification for the regulations is to protect children, but Sunmed argues that current regulations already include safeguards for children, with the true problem being inadequate enforcement. The retailer says that it already uses child-proof packaging, 21+ age restrictions, warning labels, as well as batch specific third-party lab tests to ensure the safety of its products. By putting retailers at risk of closure, says Sunmed, the state is risking jobs and tax revenue. For example, Sunmed estimates that it has generated $11.5 million in sales since October 2021, contributing about $410,000 in state taxes, and creating hundreds of jobs.

"Every one of our California stores is expected to close if this overreaching regulation comes into effect. Meanwhile, illegal products sold at gas stations and headshops continue to get into the hands of children without enforced consequences," said Marcus Quinn, CEO of Sunmed | Your CBD Store, in a press release. The retailer is encouraging the hemp community to voice its concerns to Governor Newsom.