Case Name:
Clean Cannabis Initiative LLC
Court Name:
Alameda County Superior Court
Defendant:
Kiva Brands Inc
Delta 9
Dixie Brands, Inc. (erroneously sued as Dixie Brands)
NG IP Hold LLC (erroneously sued as Nameless Genetics)
The FlavRx Company, Inc. (erroneously sued as FlavRx)
National Concessions Group (erroneously sued as Open Vape)
Bhang Corporation (erroneously sued as Bhang)
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 laboratories using generally accepted testing methodologies.
3.3 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 Defendants 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
3.3.1 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.
3.3.2 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
3.3.2.1 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.
3.3.3 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.
3.3.4 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.
3.4 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 provide a clear and
reasonable warning on such products pursuant to this Section.
