The legislation, according to industry experts, carries short- and long-term implications for manufacturers and brands, particularly smaller and minority-led businesses since many use packaging designs and branding that highlight their origin stories and likenesses.

And its effective date of Jan. 1 also brings operational challenges.

“Affected operators would not only have to revamp packaging and marketing plans, including social media, but also could be left with copious amounts of non-compliant inventory,” Allan Bach, an attorney at Arizona law firm Bianchi & Brandt, told MJBizDaily via email.

“The new constraints limit the ability for smaller-scale operators to express and distinguish themselves.”

It could also reduce operators’ ability to compete, he added.

The impact of AB 1207 appears to reduce the viability of certain operator’s ability to successfully compete.”

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