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Lawmakers, DCC cite retail access and consumer education as tools to shrink illicit market share
Summary
Legislators and DCC officials said expanding legal retail access and stronger consumer education are important complements to enforcement for shifting consumers from illicit to licensed cannabis sources.
At the informational hearing, Department of Cannabis Control officials and multiple legislators said that enforcement alone will not eliminate the illicit cannabis market and that expanding legal retail access and targeted consumer education are important tools to shift purchases toward licensed sellers.
Clint Kellum and Christina Dempsey described consumer-awareness campaigns led by the DCC, including an initiative named "Real California Cannabis" that seeks to educate consumers about differences between licensed and unlicensed products. Dempsey said the campaign uses social media and advertising to encourage consumers to purchase from legal retail sources.
Committee members noted that 42% of California jurisdictions do not allow legal retail operations, a figure witnesses and the department cited as a driver of illicit purchasing in those areas. "In jurisdictions where it's illegal, 62% of consumers think that they can purchase it there legally," Dempsey said, citing consumer-survey data presented to the committee; she added 80% of respondents value buying from the legal market once they are aware of differences.
Lawmakers argued that greater retail availability would reduce convenience-based demand for illicit sellers and that consumer education must communicate product-safety advantages of licensed products as the DCC tightens testing and packaging enforcement.
Why this matters: legislators representing areas with large numbers of retail closures said lack of local access contributes to job losses and consumer purchases through illegal sources. DCC officials said expanded retail access, better consumer knowledge and enforcement together can reduce the illicit market—9s size and help licensed businesses compete.
The committee asked the department for more data on jurisdictional retail bans, consumer awareness metrics and outreach outcomes so the Legislature can weigh options to increase licensed retail availability and fund education campaigns.
