Jonathan Hyman and Jonathan Menkes, co-chairs of Knobbe Martens’ CBD & Legal Cannabis Practice Group, recently shared their perspectives on the latest developments in hemp industry regulations in the HBW Insight article “Capitol Hill Gridlock On Amending Federal Hemp Law Leaves States In Regulatory Driver’s Seat.”
In part, the article explores the highly anticipated de-scheduling of hemp as a controlled substance and discusses some of the bureaucratic obstacles facing this next regulatory step. Speaking to this issue, Hyman said, “Whether anything is done soon at the federal level is tough to gauge, especially in a divided Congress and in an election year.” Menkes added that this delay on the federal level will likely lead to more state-by-state regulations, which he maintains potentially “undermines the ability of legitimate businesses to efficiently participate in this market.”
Among other issues caused by the uncertain regulatory market, Menkes and Hyman also discussed recent instances of companies marketing products containing delta-8 in packaging that resembled popular snack brands. “I am hard pressed to think of any examples of legitimate companies in cannabis, hemp, or hemp derivatives (including delta-8) that have a successful business model of copying well-known brands. Such a model simply will not and cannot succeed for any sustained period of time,” Menkes said. Both Menkes and Hyman elaborated on the risks of such a marketing strategy, including potential harm to young consumers and enforcement action from the Federal Trade Commission and potentially legitimate brand owners.
Hyman and Menkes also spoke on notable state-specific legislation regarding hemp regulation, the industry’s push for full cannabis legalization, and how the 2018 Farm Bill continues to impact cannabis companies’ enterprise.
Read the full article here.
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