Selling Hemp Products Nationwide: The Goldilocks Challenge
How to sell your hemp products in all 50 states, or what I like to call the Goldilocks product.
Hello, I’m Morgan Davis, a cannabis attorney based in Raleigh, North Carolina. Let’s talk about how to keep your business protected and thriving. Spoiler alert: you can’t sell your products in all 50 states. Sorry, Idaho still doesn’t allow hemp products to be sold in any form, even today.
When the federal farm bill passed in 2018, it made hemp products at or below 3% Delta 9 THC legal. However, the legal landscape is far from straightforward, and various challenges arise for businesses seeking nationwide distribution.
State-by-State Regulatory Frameworks
With 50 different regulatory frameworks for hemp and hemp products, creating a one-size-fits-all, or Goldilocks product, becomes practically impossible. States have started to regulate products themselves, leading to a diverse set of rules and guidelines.
Considerations in Product Development
The choice of product type plays a crucial role. Whether it’s an edible, beverage, inhalable, or flower product, different states have varying regulations on what is permitted. Some ban smokable hemp products, while others only restrict smoking-related products.
Formulation adds another layer of complexity. States have differing rules on Delta 8, synthetic cannabinoids, and THC content. Understanding the THC limits and formulation standards is vital for compliance.
Packaging, labeling, and testing have become highly regulated in many states. Compliance often requires adherence to strict standards, child-resistant packaging, specific warnings, and robust testing protocols.
Licensing and Compliance Challenges
Licensing and pre-registration requirements vary across states. Some necessitate obtaining a retail license before selling a product, while others require pre-approval for products before distribution. Certain states even mandate both licensing and pre-approval.
Achieving a Goldilocks product that can be distributed nationally is an increasingly burdensome challenge. As regulatory compliance becomes more complex, the burden on businesses grows, making nationwide distribution a formidable task.
Seeking Legal Guidance Early
Don’t wait until your products are ready for shipment to realize you can’t send them everywhere. Seek legal guidance early in the formulation and manufacturing process to navigate the multi-layered regulatory landscape. Contact us for assistance in determining where you can sell your product and ensuring compliance from the start.