California DCC Issues $85,000 Fine to Los Angeles Retailer for Social Media Advertising Violations (June 2025)

Regulatory Background

California Business and Professions Code § 26152 and DCC Regulation § 15040 impose strict requirements on cannabis advertising. Advertisements may not use cartoons, images, or language that could appeal to persons under 21. All digital advertisements must include a warning that the product contains cannabis and is intended for adults only.

Violation Details

DCC investigators monitoring social media activity identified 23 Instagram posts between January and May 2025 on the respondent's official account. Violations included:

• 14 posts featuring cartoon mascot imagery prohibited under § 15040(b)(3)
• 7 posts lacking the required "CANNABIS – FOR ADULTS ONLY" disclosure
• 2 posts featuring an influencer endorsement without the required paid-partnership disclosure under FTC guidelines incorporated by reference

Penalty Calculation

Under DCC Regulation § 15010, civil penalties may be assessed at up to $5,000 per day per violation. The DCC calculated the penalty based on the number of violative posts, their duration of publication, and the respondent's refusal to voluntarily remove content after an initial DCC notice.

Total penalty: $85,000 (payable within 60 days; 50% reduction available upon early settlement).

Compliance Guidance

Retailers operating in California should implement a pre-publication social media compliance review. All content must pass an age-gate and carry statutory warnings. Influencer agreements must include disclosure language. The DCC has signaled increased monitoring cadence in H2 2025.