CA SB378

Requires online cannabis marketplaces beginning July 1, 2026 to disclose in their terms of service whether they permit unlicensed cannabis sellers and whether they verify seller licenses through the Department of Cannabis Control's lookup system

Mandates online cannabis and hemp marketplaces establish reporting mechanisms allowing anyone to report unlicensed cannabis sellers or intoxicating hemp products, with required confirmation within 36 hours, updates every 14 days, and final determination within 30 days

Imposes civil penalties up to $10,000 per violation for marketplaces failing to comply with reporting requirements, and up to $250,000 for failing to display required warning graphics about potential unlicensed sellers

Creates joint and several liability for online marketplaces that engage in paid advertising for unlicensed cannabis sellers or intoxicating hemp products when harm results to consumers, with enhanced penalties of 2x damages for actual knowledge and 3x damages when a child is harmed

Provides affirmative defenses for marketplaces that verify seller licenses, never take custody of products, or promptly remove violating content within 48 hours of gaining knowledge of violations