The Assembly Business and Professions Committee of the California State Assembly convened on July 1, 2025, to discuss a proposed bill concerning online cannabis and hemp marketplaces. The meeting highlighted significant concerns regarding the bill's broad definition and its implications for online businesses.

The bill proposes strict liability for online platforms, even if they do not directly engage in the sale of cannabis products. For instance, a platform that prohibits the sale and advertisement of cannabis but allows user communication could still be held liable under this legislation. This expansive definition raises alarms among industry stakeholders, who argue that it could impose excessive compliance burdens on businesses operating online.

Representatives from TechNet and eBay expressed their opposition to the bill, emphasizing that its broad scope could negatively impact legitimate businesses. They warned that the strict liability and reporting requirements could stifle free speech and access to legal products. The representatives argued that the bill's heavy-handed approach might do more harm than good in addressing unlawful cannabis sales.

The committee members engaged in discussions about the bill, with some expressing support for its intentions. However, the concerns raised by industry representatives about the potential overreach and unintended consequences of the legislation were significant points of contention.

As the committee continues to deliberate, the future of the bill remains uncertain, with stakeholders urging caution to ensure that regulations do not hinder legitimate online commerce.