CBD & Hemp Shops Face Tough Times Under New Regulation

Hemp and CBD retailers across South Carolina are grappling with significant challenges as new federal and state regulations tighten control over hemp-derived products. A federal law set to take effect in 2026 will ban THC products containing more than 0.4 milligrams of the psychoactive compound, potentially eliminating many hemp businesses statewide. 

Several Anderson County locations have already began closing due the new regulations. In Greenville County, law enforcement has intensified efforts against retailers selling products exceeding legal THC limits. Since early 2025, several stores have been raided, resulting in the seizure of over 1,000 pounds of products and multiple business closures. Sheriff Hobart Lewis emphasized, "We're not going to put up with it anymore." greenvillejournal.com 

The South Carolina Department of Agriculture has also implemented stricter licensing requirements. Effective January 1, 2025, manufacturers and retailers of hemp-derived consumables must obtain annual licenses, with fees set at $500 for producers and $250 per retail location. Non-compliance may result in product seizure and misdemeanor charges. 

These regulatory changes have led to a wave of store closures and legal battles. In Columbia, employees of a shuttered vape shop have filed lawsuits alleging false imprisonment and malicious prosecution following police raids. 

As the landscape for hemp and CBD products continues to evolve, retailers and consumers alike face uncertainty. Stakeholders are calling for clearer regulations to navigate this rapidly changing market.