Cannabis Forethought: Labeling, Warnings and Risk Mitigation
Wednesday, March 30, 2022
Source: Phillips Lytle/Buffalo Business First
Passage of the Marijuana Regulation and Taxation Act (MRTA) legalized adult-use recreational cannabis in New York State and opened the doors to a market projected to be worth billions of dollars. The legislation created a new Office of Cannabis Management governed by the Cannabis Control Board (collectively, OCM). The OCM will implement regulations governing the manufacturing, packaging, labeling, advertising and testing of cannabis products to protect consumers. The regulations are expected to be finalized later this year.
Savvy entrepreneurs have already begun considering what steps they need to take in preparation for submitting license applications to the OCM. While potential applicants should be undertaking initial preparatory actions, such as corporate entity formation, securing investment funding with written agreements, developing a supply chain, preparing quality controls and documentation procedures, and generating dialogue with local municipalities, it is never too early to begin considering how to maximize regulatory compliance and mitigate the risk of potential future product liability litigation.