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Beginning July 1, 2023, Tennessee stores selling CBD must adhere to new regulations. It is a Class A misdemeanor to knowingly sell or distribute cannabinoid products to anyone under 21 years old, with penalties matching those for selling alcohol to minors. CBD products must be stored behind the retail counter and kept inaccessible to customers under 21 to avoid violations.
Retailers are also required to collect a new 6% tax on CBD sales, in addition to standard sales tax, with the first payment due on August 20, 2023. Additionally, it is illegal to distribute hemp-derived cannabinoid product samples on public streets, sidewalks, or parks.
Discounts / Promotions:
Creative Guidelines:
Age Verification: Ensure all ads clearly state CBD is for adults 21 and over, and use age-gating on digital platforms.
Tax Transparency: Highlight the new 6% tax in marketing materials and at checkout to keep customers informed.
Educational Content: Share content on responsible CBD use and legal compliance through blogs, videos, and infographics.
Targeted Marketing: Use age-restricted digital platforms and influencers to reach compliant audiences and avoid public spaces for promotions.
Synopsis:
Beginning July 1, 2023, stores selling CBD must:
Card for 21. It is a Class A misdemeanor to knowingly sell or distribute cannabinoid products to any person under 21 years of age. This is the same penalty as sale of beer or alcoholic beverages to a minor.
Take CBD off the shelves. CBD must be stored behind the retail counter and inaccessible to a customer, if the business allows patrons that are under 21. A violation is a Class A misdemeanor.
Tax CBD. There is a new 6% tax. This is in addition to sales tax. Retailers should begin collecting the 6% tax on sales of CBD beginning July 1, 2023. The first CBD sales taxes are due August 20, 2023.
No public samples. It is illegal to knowingly distribute samples of hemp-derived cannabinoid product in or on a public street, sidewalk, or park.
Disclaimer
Please note that we are not legal professionals, and the information provided in this article should not be interpreted as legal advice. We strongly recommend consulting with legal counsel to ensure compliance with all applicable laws and regulations.
