California Seizes 2.3 Million Unlicensed Cannabis Packages Marked With Forged Regulatory Seal

LOS ANGELES, Aug. 13, 2023 – PRESS RELEASE – Reinforcing California’s commitment to protecting children from illegal cannabis and protecting the state’s legal cannabis marketplace, Gov. Gavin Newsom announced that an operation led by his Unified Cannabis Enforcement Taskforce (UCETF) seized nearly 2.3 million illegal cannabis packages marked with the universal symbol of legal California cannabis.

The sting operation occurred in the Los Angeles Toy District, and much of the illegal packaging was designed to mimic popular food and candy items that could appeal to children. The taskforce also recently announced that it had seized more than $120 million in illegal cannabis since January.

“California is committed to supporting our safe and legal cannabis market,” Newsom said. “We will not tolerate criminal activity that undermines the legal market, especially when it puts children at risk. This successful operation in the Toy District reinforces our commitment and sends a clear warning to criminals choosing to operate outside the safer legal industry.”

Led by the California Department of Tax and Fee Administration (CDTFA) and assisted by the Department of Cannabis Control (DCC), the governor’s Office of Emergency Services, and the Employment Development Department, the operation focused on 11 storefronts in the Toy District of Los Angeles, where numerous businesses were manufacturing and selling bulk packaging used in the illicit cannabis market to deceive customers and thwart state safety and quality regulations.

In this operation, the UCEFT seized 2,279,900 contraband packages. The taskforce separately seized 31 banker-sized boxes and garbage bags filled with illicit cannabis, as well as 32 boxes and bags of illicit cigarettes and tobacco products.

“This packaging provides a thin yet frightening veil of legitimacy for illicit operators,” CDTFA Director Nick Maduros said. “It violates the trust of California consumers who believe that the cannabis symbol signifies a certain product standard, and it enables illegal operators to circumvent tax and licensing requirements.”

Packaging Requirements

Cannabis goods must be labeled to ensure consumers are informed about what they are buying and to prevent unintended use, including through packaging that is child-resistant, tamper-evident, resealable, opaque if an edible cannabis product, and includes the universal symbol for cannabis.

“The operation in the Toy District represents an important new direction by the Unified Cannabis Enforcement Taskforce to disrupt unlicensed cannabis sales. Illegal packaging is dangerous to consumers, especially when it is ripping off well-known brands that are attractive to children, and needs to be removed from the marketplace,” DCC Director Nicole Elliott said.

The universal cannabis symbol on cannabis packaging creates a sense of trust in consumers that the product has been tested and complies with licensing and regulatory standards for sale and safe consumption in California. In order to legally sell or store packaging marked with the symbol, businesses have to be licensed with DCC or have invoices from a cannabis business licensed by the department.

Taking Down Illicit Cannabis

Newsom has directed state agencies to aggressively target the organized criminal enterprises involved in the illicit cannabis market. These illegal schemes not only threaten California’s legal cannabis market, but the use of illegal pesticides and unregulated practices harm California’s environment and water quality. California is also focused on ending the exploitation of vulnerable workers at these sites, who are often victims of labor violations and human trafficking.

A Unified Strategy Across California

In 2022, Newsom created the UCETF to further align state efforts and increase cannabis enforcement coordination between state, local and federal partners. The enforcement actions protect consumer and public safety, safeguard the environment, and deprive illegal cannabis operators and transnational criminal organizations of illicit revenue that harms consumers and undercuts the regulated cannabis market in California.

Since its inception, UCETF has seized more than $465 million in unlicensed cannabis by serving 309 search warrants. The taskforce has also eradicated 470,435 illegal cannabis plants, seized 150 illegal firearms and arrested 38 individuals.

To learn more about the legal California cannabis market, state licenses and laws, visit cannabis.ca.gov.