Client Alert: Commercial Cannabis: Current Legal Landscape

In 2020, adult-use or recreational cannabis became legal for commercial sale in Illinois.  Illinois is the 11th state to legalize cannabis for adult-use, joining Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, Washington and the District of Columbia.  More states likely will soon follow.  To operate in this rapidly growing market, or engage with those operating in this space, there is a strong need to proactively consider and navigate a number of complex commercial legal issues.

Commercial cannabis appears to be an industry that has been weathering the new and difficult challenges that the coronavirus presents.  For example, financial news outlets have recently reported a significant increase in commercial sales, and in several states commercial cannabis has been deemed an “essential” business.

To operate in this rapidly growing market, or engage with those operating in this space, there is a strong need to proactively consider and navigate a number of complex commercial legal issues.

  • Commercial and insurance contracts: the trend is towards enforcement, but not all federal courts are on board.

  • Antitrust and black market: stay abreast of practices that may raise antitrust concerns and actions to address the black market.

  • Consumer claims: guard yourself against consumer claims, including those based on experiences from the food and beverage industry and using arbitration agreements with waivers.

  • IP protection and trade secrets: make sure to protect your valuable rights while avoiding infringement of others. 

Any player in this growing commercial space should consider experienced counsel to help navigate this legal landscape.  Jenner & Block has lawyers and practice groups with significant experience in these areas, including a working group of attorneys focused on the cross section of traditional legal issues and the growing cannabis industry, who are extremely well-positioned to provide legal counsel to address them.  Please reach out to us to assist.

To read the full article, please click here. 

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© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

Client Alert: Commercial Cannabis: Current Legal Landscape

In 2020, adult-use or recreational cannabis became legal for commercial sale in Illinois.  Illinois is the 11th state to legalize cannabis for adult-use, joining Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, Washington and the District of Columbia.  More states likely will soon follow.  To operate in this rapidly growing market, or engage with those operating in this space, there is a strong need to proactively consider and navigate a number of complex commercial legal issues.

Commercial cannabis appears to be an industry that has been weathering the new and difficult challenges that the coronavirus presents.  For example, financial news outlets have recently reported a significant increase in commercial sales, and in several states commercial cannabis has been deemed an “essential” business.

To operate in this rapidly growing market, or engage with those operating in this space, there is a strong need to proactively consider and navigate a number of complex commercial legal issues.

  • Commercial and insurance contracts: the trend is towards enforcement, but not all federal courts are on board.

  • Antitrust and black market: stay abreast of practices that may raise antitrust concerns and actions to address the black market.

  • Consumer claims: guard yourself against consumer claims, including those based on experiences from the food and beverage industry and using arbitration agreements with waivers.

  • IP protection and trade secrets: make sure to protect your valuable rights while avoiding infringement of others. 

Any player in this growing commercial space should consider experienced counsel to help navigate this legal landscape.  Jenner & Block has lawyers and practice groups with significant experience in these areas, including a working group of attorneys focused on the cross section of traditional legal issues and the growing cannabis industry, who are extremely well-positioned to provide legal counsel to address them.  Please reach out to us to assist.

To read the full article, please click here. 

Related Capabilities

Related Locations

© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

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