Kaneko and Gaus Detail California Legal Framework for Cannabis Companies

Shook Partner Naoki Kaneko and Associate Edd Gaus have authored "Growing Pains: Cannabis and California’s Consumer Claims" for the Cannabis Law Journal. "Those entering, or already part of, California’s cannabis market should prepare themselves for a wide array of legal challenges, including personal injury claims, intellectual property disputes and attacks on marketing," they explain.

Kaneko and Gaus provide an overview of California's Unfair Competition Law, False Advertising Law and Consumer Legal Remedies Act, explaining how the statutes may be used to support allegations against cannabis companies. In addition, they note, "Cannabis companies should also expect a variety of 'tag-along' claims. These include breach of warranty claims, which focus on the representations – express and implied – accompanying a sale."

"Any cannabis company expecting to succeed in the new 'green rush' will inevitably face litigation," Kaneko and Gaus conclude. "But those that take the extra time to carefully scrutinize labeling before distributing into the stream of commerce will sleep easier knowing they have at least tried to mitigate potential consumer claims in California."