Some retail watchers are claiming legal marijuana is the next big thing. Constellation Brands, a global beverage alcohol company, has launched the top-selling wine brands and invested billions in cannabis in the US and Canada.

Meanwhile, 39 states and the District of Columbia have legalized either recreational or medical marijuana, while Congress almost constantly seeks to overturn federal banking restrictions.

So it’s only a matter of time before legal weed is available online, right?

Hardly.

marijuana on the internet

“It’s still a controlled substance at the federal level, and as long as that’s the case, there’s no interstate commerce,” said attorney Rebecca Stamey-White, a partner at San Francisco-based Hinman & Carmichael, whose clients include legal marijuana retailers . “Here online is a challenge. So what happens has to be decided state by state and it will be different for each state.”

Federal law in the US classifies marijuana as a controlled substance and prohibits its sale across state lines.

Given the obstacles, the question isn’t when retailers can sell legal weed online, but whether it can be sold at all, Stamey-White says.

So what do ecommerce merchants need to know to understand all of this?

medicine versus recreation. The first is the difference between “medical” and “recreational”. The former requires a doctor’s prescription. It is used to treat diseases – glaucoma, for example – and sold through a state-licensed pharmacy.

Not all doctors are willing to prescribe marijuana. States may have different prescription requirements or approved medical conditions treatable with marijuana. If it’s not possible to buy Allegra-D or Claritin-D online, it probably won’t be for medical marijuana.

Marijuana vs Alcohol. The second key piece of information is best compared to selling alcohol, albeit with much stricter regulations. Typically, however, non-medical weed is sold through state-licensed retailers and for “adult” use only, as the state defines that term.

The licensed retailer must meet various criteria that vary from state to state, including restrictions on how much can be purchased in one transaction and over time.

Retail associates must be state certified—a key distinction from alcohol retailers in many states—and of minimum working age. It is possible to sell online, take customer orders and in some cases even deliver – with the caveats that the retailer must be state licensed, employ certified staff, perform age and ID verification and be prepared to complete the necessary paperwork take care of. Few, if any, ecommerce retailers meet these requirements.

banks, marketing

The US government still classifies marijuana the same as heroin and LSD, despite attempts by Congress to do otherwise. This means that marijuana cannot be sold or transported across state lines, only within the same state where it is legal.

Stamey-White didn’t share a timeline as to when and if that might change. The last five attempts by Congress to reform marijuana laws have failed due to decades of resistance from lawmakers with little White House support.

payments. US banking laws ban illegal substances like marijuana and force many legitimate retailers to forgo banking services like credit card acceptance.

Therefore, licensed retailers who take online marijuana orders only need to collect cash and be comfortable with the staff handling.

Marketing. The online selling process is so convoluted, Stamey-White says, retailers — licensed or not — could sell weed but not related merchandise like t-shirts, hats, and hoodies.

Most legal marijuana states have regulations governing advertising and marketing. Therefore, a retailer who wants to sell a t-shirt with the store’s logo or the name of one of their products could be breaking these laws. It could be legal, but it would probably require a court case to know for sure.