Charlotte's Web Provides Update on Diverging Hemp Policies: Federal Momentum Builds as California Restricts Therapeutic Hemp Product Access

Executive Summary

• Charlotte's Web will cease direct-to-consumer shipments of affected ingestible hemp products to California consumers starting July 1, 2026, due to new state restrictions under SB 378.
• The release highlights a significant policy divergence, with California moving toward strict restrictions while the federal White House is urging Congress to preserve consumer access to full-spectrum hemp-derived CBD products.
• The company will continue to advocate for science-based hemp regulation, notify affected customers, and monitor federal legislative developments regarding potential delays or revisions to federal hemp rules.

Key Details

• California SB 378 and related state regulations will significantly restrict the sale and distribution of ingestible full-spectrum and broad-spectrum hemp-derived products, specifically limiting direct-to-consumer and online sales.
• Effective July 1, 2026, Charlotte's Web must stop direct shipments of affected products to California consumers.
• Exempted product categories expected to remain available include topicals meeting the 0.3% THC dry-weight definition, cannabinoid isolates, and mushroom-based products (subject to final regulatory confirmation).
• On June 24, 2026, the White House called on Congress to revise federal hemp regulations to preserve access to full-spectrum CBD products, or at minimum delay separate federal changes currently scheduled for November 12, 2026.
• The Administration emphasized preserving congressional intent to restrict products posing serious health risks while allowing access to appropriate full-spectrum CBD, pointing to bipartisan legislation by Rep. Andy Barr (R-KY) as a potential model.
• Charlotte's Web, as a member of the ONE HEMP coalition, advocates for distinct regulatory frameworks that separate non-intoxicating hemp wellness products from intoxicating beverages and recreational products.
• The company is actively notifying affected California customers and encouraging them to engage with policymakers while continuing to lobby for responsible hemp regulation at both state and federal levels.

Notable Quotes

• Bill Morachnick, Chief Executive Officer: "This bill is a tragedy for many California families who have come to rely on these products to live fuller lives... Without thoughtful alternative access, this becomes a public health crisis in the making; one that risks taking away safe, trusted options that so many people depend on."
• Kelly Fair, General Counsel: "This is exactly why federal leadership matters. Consumers deserve consistent, science-based rules that preserve access to trusted products, regardless of where they live."