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California Escalates Crackdown on Deceptively Packaged Products

State targeting illegal cannabis, intoxicating hemp and kratom-derived substances marketed to appear safe.

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Steve Kim
Source: This report is based on an official public release from Office of the Governor of California. PULSE organizes and summarizes public government communications.

Governor Gavin Newsom announced enforcement actions against deceptively packaged products sold in California, targeting illegal cannabis, intoxicating hemp products, and kratom-derived substances. The state said bad actors use colorful packaging, candy-like labels and wellness-sounding names to market products that pose public health risks, particularly to children. Enforcement efforts span three categories where regulators say illegal or dangerous products have exploited loopholes or regulatory gaps.

California issued emergency regulations prohibiting industrial hemp food, beverages and dietary products from containing detectable THC or other intoxicating cannabinoids per serving. Sales to people under 21 are prohibited, and packages are limited to five servings. According to the state, the Department of Alcoholic Beverage Control conducted 24,590 visits, removed 7,403 products from shelves, and reported a 99.36% compliance rate among licensees. Governor Newsom signed Assembly Bill 8 in 2025, which applies the same rules that apply to cannabis to intoxicating hemp products.

Kratom-derived substances like 7-OH products and synthetic compounds like MGM-15 are often marketed as health supplements but pose significant health risks. According to Dr. Erica Pan, California Department of Public Health Director and State Public Health Officer, "Kratom-derived substances like 7-OH and synthetic compounds like MGM-15 have been associated with addiction, overdose, and death, and consumers should not assume these products are safe alternatives to opioids or other drugs." The state has embargoed or destroyed approximately $10 million worth of kratom and 7-OH products. The Department of Alcoholic Beverage Control conducted 9,209 visits to kratom-related locations, removed 8,230 products from shelves, and reported a 97.97% compliance rate.

California's Unified Cannabis Enforcement Task Force, established in 2022, has pursued illegal cannabis operators. Since the task force was created, enforcement has resulted in an estimated $1.47 billion in illicit cannabis seized or destroyed and 1,441,826 cannabis plants eradicated. Governor Newsom also signed Assembly Bill 2249, authored by Assemblymember Jacqui Irwin, to strengthen restrictions on cannabis packaging, labeling, advertising and marketing that may appeal to children, including cartoon imagery and packaging that mimics products primarily marketed to kids.

State agencies—including the Department of Cannabis Control, Department of Fish and Wildlife, Department of Public Health, Department of Alcoholic Beverage Control, Department of Tax and Fee Administration and the Governor's Office of Emergency Services—are coordinating with local and federal partners to address illegal products.

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