The local district attorney’s office in Santa Rosa, California, fined an 11-year-old medical cannabis dispensary $40,000 for failing to adhere to state-required warnings about potentially cancer-causing substances, which include marijuana.

The case is a reminder to California companies that failing to follow the most stringent letter of the law can prove costly, especially in the state’s new regulated market, which launched in January.

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According to The Press Democrat, Sonoma Patient Group in Santa Rosa was targeted by a complaint from a consumer watchdog group last year that looks for businesses that violate the state law requiring cancer warnings.

The dispensary subsequently changed its advertising to be compliant with state law, but also agreed on May 10 to pay $40,000 in fines instead of fighting the case with the local D.A.

Sonoma Patient Group will also “hold an educational event to ensure other cannabis businesses in the county understand how to comply with the California’s Safe Drinking Water and Toxic Enforcement Act of 1986, commonly known as Proposition 65,” The Press Democrat reported.