Certain restrictions apply to the marketing and sale of Canopy Growth USA’s hemp-derived products, including products containing cannabidiol (CBD). Canopy CBD Products include CBD products produced for Canopy’s affiliates Biosteel and ThisWorks. It’s important that our partner Distributors, Retailers, and Resellers (collectively, Canopy Partners) all follow these restrictions to remain in compliance with the Distribution/Purchase Agreements. The following information does not, and is not intended to, constitute legal advice; each potential Canopy Partner is obligated to conduct its own due diligence and consult their own legal counsel, as federal and state hemp laws and regulations are constantly changing.
This information is proprietary and confidential, is subject to update, and may not be transmitted to a third party that has not signed a non-disclosure agreement with Canopy.
For any questions, e-mail Legal@canopygrowth.com with the subject line “CBD Brand Guidelines.”
1 U.S. States Authorized for Sale of Canopy CBD Products1. U.S. States Authorized for Sale of Canopy CBD Products
1.1 Where can we Sell Foods and Beverages?
Currently, Canopy CBD Foods and Beverages may only be sold in the states highlighted in green.
Permissible States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming.
1.2 Where can We Sell Dietary Supplements?
Currently, Canopy CBD Dietary Supplements may only be sold in the states highlighted in green.
Permissible States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii*, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
*Note that in Hawaii the only permissible forms of dietary supplement are tablets, capsules, powders, softgels, gelcaps, and liquids.
1.3 Where can We Sell Topicals (Creams)?
Currently, Canopy CBD Topicals may only be sold in the states highlighted in green.
Permissible States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
1.4 Where Can We Sell CBD Vapes?
Currently, Canopy CBD Vapes may only be sold in the states highlighted in green.
Permissible States and Territories: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
1.5 CBD May not be Distributed Outside the United States Without Permission
Canopy CBD Products may not be re-sold or distributed outside the United States by a Canopy Partner except with explicit written consent by an officer of Canopy Growth USA, LLC.
1.6 Special Requirements in Select States
1.6.1 Retailer Registrations
Certain states require hemp product retailers to register or obtain a retailer license. A Canopy Partner shall register as a CBD/hemp product retailer in every such state, before selling any Canopy CBD Products in those states. Currently Alaska, Iowa (please note that in Iowa the retailer registration process requires that a listing of all products be provided), Louisiana, New York, Texas, Utah, and West Virginia require retailer registration, regardless of physical presence in the state. Additionally, Florida and Rhode Island require a retailer registration, only for sales from physical in-state stores.
1.6.2 Product Registrations
Certain states require each CBD product line to be approved for in-state retail sales. Before selling Canopy CBD Products in any such state, a Canopy Partner shall check to ensure the specific Product is approved. Currently, only four states require CBD product registration: Alaska, Louisiana, Utah, and West Virginia.
If the Canopy CBD Product to be sold is not listed as approved, the Canopy Partner should notify Canopy before selling that specific product in that state. Canopy will obtain the relevant product registration.
1.6.3 Distributor Registrations
Certain states require Distributor Registrations.
The following states require a distributor registration regardless of physical presence in the state: Iowa, Louisiana, New York, and West Virginia.
The following states require a distributor registration only if a physical location has been established in the state: Colorado, Florida, Kentucky, Michigan, and Texas.
A Canopy Partner shall register as a CBD/hemp distributor in every such state as appropriate before distributing Canopy CBD Products in those states.
2. Marketing CBD Products
2.1 No Advertising to Children
Canopy CBD Products should not be advertised in a manner that is attractive to children. For example, no cartoons or cartoon-like figures should be used, nor should images popular with children like brightly colored images, or characters or images popular with children be used. In addition, caution should be used in advertising in publications, physical settings, or websites or channels that are aimed towards consumers under 18 years old.
2.2 No False or Deceptive Advertising
Advertising for Canopy CBD Products should not contain a material misrepresentation or omission that is likely to mislead consumers. Canopy Partners particularly shall not misrepresent the amount of CBD in the product.
2.3 No Unapproved Claims That CBD Products Affect Bodily Structure or Function
Canopy CBD Products cannot be marketed using any unapproved statement(s) that CBD affects the structure or function of the human body (e.g., “CBD replenishes the body’s nervous system”). For any new structure or function claims to be used in marketing, please email Legal@canopygrowth.com with the subject line “CBD Brand Guidelines.”
2.4 No Claims That CBD Products Treat Disease
Canopy Partners shall not market or advertise Canopy CBD Products with any claim that the products are intended to cure, mitigate, treat or prevent a disease. This includes any claim that the Products:
- have an effect on a specific disease or class of diseases (e.g. “CBD eliminates chronic anxiety”),
- has an effect on an abnormal condition of the body (e.g. “CBD has been shown to be effective in killing human breast cancer cells”), or
- can be used in place of a prescribed drug (e.g. “CBD is a natural replacement for antidepressants and opioid treatments”).
2.5 No Repackaging or Altering of Canopy Labels
Canopy Partners shall not remove or alter the packaging of any Canopy CBD Products, or repackage such Products in other packages or quantities.
2.6 Any Discussion of CBD Studies or User Results Must be Qualified
Any CBD clinical studies and user results cited in conjunction with the sale of Canopy CBD Products must be properly substantiated and qualified and cannot be presented as an implicit claim of the product to cure disease.
2.7 Testimonials
Any testimonials used in marketing or advertising, whether online, in print, or on TV, must comply with the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.
2.8 Social Media and Influencers
Any use of Social Media and Influencers must comply with the FTC’s Disclosures 101 for Social Media Influencers guide, and the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.
3. Allowed Resellers of CBD Products
3.1 Cannot Sell CBD Along with Marijuana or Other Illegal Substances
Canopy Partners may not distribute Canopy CBD Products for resale in marijuana dispensaries or in any other facility that sells substances listed in the federal Controlled Substances Act, except with explicit written consent by an officer of Canopy Growth USA.
3.2 Cannot be Sold Mixed with Alcohol in Certain States
Certain states such as California, Louisiana, New Hampshire, New York, and Oregon restrict the retail sale of beverages containing both CBD and alcohol, including on-site preparation and consumption. Canopy Partners should observe these rules and contact their local ABC agency for further details.
3.3 Distribution to Resellers Requires Consent of Canopy Growth USA
Canopy CBD Products may only be distributed to resellers by a Canopy Partner with the written consent of Canopy Growth USA. Such resale shall be subject to Canopy’s Unilateral Minimum Advertised Price Policy (eff. March 1, 2020).