A bipartisan pair of congressional lawmakers filed a new bill aimed at protecting consumers from online scams that includes a provision designating cannabis as a “high-risk” product that would require companies advertising it to undergo enhanced verification procedures.
The Stopping Abuse and Fraud Enabled by Platforms Act, or the SAFE Platforms Act, introduced last week by Rep. Valerie Foushee (D-NC) and Del. James Moylan (R-Guam), would generally require online platforms to adopt safety features to prevent the posting of fraudulent content.
The key provision of concern for the marijuana industry would mandate that covered online platforms require advertisers in so-called “high-risk categories” to meet enhanced verification criteria, including submitting additional documentation to validate identity and business operations and undergoing a review of their online presence and business history. They would also need to be periodically re-verified.
The legislation, H.R. 10433, specifies a number of categories of high-risk products and services, including “tobacco, alcohol, cannabis, and other consumables restricted by age.”
Other such industries include financial services and investment opportunities, health products and services, educational credentials and certification, housing and real estate, gambling and unregulated financial products, including cryptocurrency and non-fungible tokens.
The Federal Trade Commission would also be authorized to
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