Existing law defines activities that constitute deceptive trade practices and provides for the imposition of civil and criminal penalties against persons who engage in deceptive trade practices. (Chapter 598 of NRS) Section 1 of this bill requires a person who does not hold a cannabis establishment license and who sells or offers to sell a hemp product which is intended for human consumption to display at all times at the location at which the sale or offer is made certain signs notifying customers that the location is not licensed to sell cannabis and that all hemp products contain less than the legal limit of THC. Section 1 additionally prohibits such a person from advertising or permitting to be advertised in any manner any false, misleading or deceptive statement or representation with regard to: (1) whether the person holds a cannabis establishment license or the location at which the sale or offer is made is the premises of a cannabis establishment; or (2) the nature of any hemp product which is intended for human consumption that is sold or offered for sale by the person. Under section 1, any violation of the requirements or prohibitions set forth in this bill constitutes a deceptive trade practice. Section 2 of this bill grants the Cannabis Compliance Board the power to investigate and refer violations of section 1 to the Attorney General for the imposition of any applicable civil and criminal penalties.

Statutes affected:
Reprint 2: 678A.440
As Enrolled: 678A.440