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Are cannabis businesses at risk of product liability claims?

On Behalf of | Jun 20, 2023 | marijuana businesses

Any entity that provides products to consumers can face a product liability claim if someone suffers harm from a defective product. Since the cannabis industry is still evolving, even here in California, those operating a marijuana business may be at more risk.

So, now that you know your company could one day face legal trouble because of a defective product, it is time to improve your knowledge of product liability claims. You can use what you learn to strengthen legal protections for your cannabis company.

Who can be targeted in a claim?

Liability for consumer harm starts at the beginning. Essentially, anyone involved in the product’s production could be a possible target in a lawsuit.

In the context of cannabis business law, examples of potentially liable parties are:

  • Marijuana cultivators and growers
  • Those who operate retail stores
  • Component product manufacturers (CBD oils, etc.)
  • Those who process or package products
  • Cannabis testing labs
  • Manufacturers of infused and edible marijuana products

Companies that create delivery devices like pipes and vape pens could also be named in a product liability claim.

Types of defects

Of course, the person filing such a claim must prove that your business made a mistake that caused an injury. Generally, grounds for a product liability claim revolve around three categories:

  • Design defect: An injury occurred because the flaws in the design of a product outweighed its potential benefits.
  • Manufacturing defect: An injury occurred because something happened during manufacturing that made the product unsafe.
  • Labeling defect: An injury occurred because a company did not properly warn consumers about the product’s dangers.

Protect yourself from a product liability claim by providing only safe, well-tested cannabis products to your customers. Legal guidance can help you if someone targets your company in an injury claim.