3. INJUNCTIVE RELIEF
3.1 No later than one hundred and twenty days (120) after the Effective Date, and continuing thereafter, Settling Defendants who are not Licensor Defendants shall only manufacture, package, distribute, market, sell, or offer for sale in California, Covered Product(s) meeting the Chemical Standard as set forth in Section 3.2 (hereinafter “Reformulated Covered Product(s)”) or Covered Product(s) for which a clear and reasonable warning is provided pursuant to Section 3.3. Nothing herein shall be deemed to required compliance with this Section 3 as to Covered Products that are already in the stream of commerce as of one hundred and twenty (120) days after the Effective Date.
3.2 “Reformulated Covered Product” Standard. “Reformulated Covered Product” is a Covered Product meeting the applicable Chemical Standard for the Chemicals. Any testing required to establish that a Covered Product meets the Chemical Standard shall be undertaken by appropriately qualified/accredited and licensed as the case may be, testing laboratories using generally accepted testing methodologies that are in compliance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act, specifically Business and Professions Code sections 26100 to 26106, California Code of Regulations, title 16, sections 5700 through 5721and/or California Code of Regulations, title 4, sections 15700 through 15738, as applicable, and any other relevant statutes or regulations applicable to commercial cannabis activity in California.
3.2 Clear and Reasonable Warnings. No later than one hundred and twenty (120) days after the Effective Date and continuing thereafter, each Settling Defendant who is not a Licensor Defendant shall, for all Covered Product(s) it manufactures, packages, distributes, markets, sells or offers for sale in California that does not meet the Chemical Standard (other than Covered Product existing as of 120 days after the Effective Date), provide a clear and reasonable warning in one of the forms set forth in subsections 3.3.1 and 3.3.2 below, prominently placed with such conspicuousness as compared with other words, statements, designs, or devices as to render it likely to be read and understood by an ordinary individual under customary conditions before or at the time of the purchase transaction. Each such warning shall only be required to include reference to Cancer or Reproductive Harm as may be required by OEHHA’s listings of the Chemicals which currently provide the following:
Carbaryl Cancer and Reproductive Toxicity
Malathion Cancer
Myclobutanil Reproductive Toxicity
3.2.1 In the event that OEHHA promulgates one or more regulations requiring or permitting warning text and/or methods of transmission different than those set forth above and below, a Settling Defendant shall be entitled to implement, at its discretion, such other warning text and/or method of transmission for the Covered Product(s) without being deemed in breach of this Consent Judgment.
3.2.2 Covered Products Labeling. Settling Defendants who are not Licensor Defendants shall, in the absence of reformulation, affix a warning to the packaging, labeling or directly on each Covered Product(s) stating one of the following:
WARNING: This product can expose you to chemicals including [CHEMICAL NAME(S)], which is [are] known to the State of California to cause [cancer] [and] [birth defects or other reproductive harm]. For more information go to www.P65Warnings.ca.gov.
or
WARNING: [Cancer] [and] [Reproductive Harm] -- www.P65Warnings.ca.gov
3.2.2.1 The yellow warning triangle may be substituted with a black and white triangle as such alteration would otherwise be permitted under 27 CCR § 25603(a)(1) as it may be amended from time to time. Short-form warnings must comply with 27 CCR § 25602(a)(4) where the entire warning must be in a type size no smaller than the largest type size used for other consumer information on the product. In no case shall the warning appear in a type size smaller than 6-point type.
3.2.3 Point of Display Warnings. Alternatively, a Settling Defendant that operates a California licensed retail cannabis business and that is not a Licensor Defendant may post point of display warning signs in the form below in close proximity to the point of display of the Covered Product(s). Each such warning shall be provided in a manner such that the consumer or user is reasonably likely to understand to which specific Covered Products the warning applies, so as to minimize the risk of consumer confusion.
[PROPOSITION 65] WARNING: This product can expose you to chemicals including [CHEMICAL NAME(S)], which is [are] known to the State of California to cause [cancer] [and] [birth defects or other reproductive harm]. For more information go to www.P65Warnings.ca.gov.
3.2.4 Internet Sales Warning. In the event that a Settling Defendant who is not a Licensor Defendant sells Covered Product(s) via the internet directly to consumers located in California 120 days after the Effective Date that are not Reformulated Covered Product(s), such Settling Defendant, in addition to complying with the warning requirements of Section 3.3.2 (or, for Settling Defendants implementing the alternative warning requirements of Section 3.3.3, those requirements), shall provide a warning for such Covered Product(s) sold via the internet to such California residents. Such internet warnings shall implement the warning text used on Covered Product labeling or point of display signage, as the case may be, and shall be provided by including either the warning or a clearly marked hyperlink using the word “WARNING” on the product display page, or by otherwise prominently displaying the warning to the purchaser prior to completing the purchase.
3.3 Licensor Defendants Only. Licensor Defendants are not subject to the requirements of Section 3.1 through 3.3 above. Each Licensor Defendant agrees that it shall not enter into any intellectual property licensing agreement with any third party intending to manufacture or distribute a cannabis product unless that third party agrees to meet all requirements pursuant to this Section.
