Washington state’s new regulations under SB 5367 signify a dramatic shift in the CBD industry. Previously, the state allowed the sale of CBD products derived from industrial hemp, as long as they contained less than 0.3% THC. Now, the definition of “cannabis production” in Washington State includes CBD products with ANY detectable amount of THC concentration. That’s a big shift for most products that contain some, but less than 0.3% THC.

Potential Impact on CBD Products and Retailers:

• Compliance: The foremost concern is ensuring compliance with the updated regulations. If your business operates in the CBD industry in Washington, it is crucial to review and revise your existing practices to align with the new requirements. Consult with legal professionals specializing in cannabis and hemp law to navigate the complexities and mitigate any potential compliance risks.
• Supply Chain: The shift to sourcing CBD products with 0% THC will likely impact the supply chain. Businesses that previously relied on hemp-derived CBD below the 0.3% THC mark may need to establish new partnerships or explore alternative sourcing options to comply with the updated regulations. Consider conducting due diligence on potential suppliers to ensure they meet the state’s licensing and regulatory requirements.
• Labeling and Packaging: The revised regulations may also trigger specific labeling and packaging updates for CBD products. You should pay close attention to these guidelines to avoid potential penalties or product recalls. Work with legal professionals to review and update your product labels, ensuring accurate information regarding CBD content, THC levels, warnings, and other required disclosures.
• Licensing and Permits: As Washington’s CBD industry aligns more closely with its cannabis regulations, you should be prepared for potential changes in licensing and permitting requirements. It is crucial to stay informed about the application process, any additional fees, and deadlines associated with licensing and permits.
• Marketing and Advertising: The amended regulations may also impact marketing and advertising practices. Understand the limitations on promoting CBD products to ensure compliance with state guidelines.

Washington’s recent changes to its CBD industry regulations have undoubtedly upended the landscape for businesses operating in the state. CBD businesses in Washington State must now prioritize understanding and adapting to the revised requirements in order to remain compliant and avoid potential legal consequences, which may be civil and criminal.