Ca has two Cottage Food Operation Permits, one requiring inspection and one that does not. I have the latter, Permit A. Both require a license, but not inspection. As long as she's licensed, she can have a bake sale. I have the often. And according to the extremely prosperous pop up restaurants on Instagram, permit and license be damned! (trust, that burns my buns that they're so popular while throwing regulation in the face of all of us trying to do it the right way!)
It's not just a bake sale, it's what you're selling and how you sell it. Even with a CFO license nearly all states have restrictions on online sales. Some states even prohibit advertising online. When I lived in Texas the laws there were very restrictive. Absolutely no onlines; no third party sells. No shipping of products. You cannot hold bake sales. You can only sell at government licensed venues (e.g., license farmers market).
In the state of California you can advertise and accept payment online but delivery of the food item must be made in person.
In California a CFO cannot ship products and you cannot engage in interstate sells. Interstate sells means you've crossed over into interstate commerce, which is controlled by federal laws.
Requirements vary by county. The state advises applicants to check with their local governments to ensure that they are in compliance with local regulations as well as state law.
The county I live in requires a kitchen inspection. CFO's are also subject to inspection at any time in the event of any complaint or notification about a possible health issue.
Once you obtain a CFO license in this county you have to notify the county's environmental health department of any product modification or addition, any changes in the operation, any changes in the method of delivery – – whether or not the product is actually ever sold, consigned, or simply given away for free.
There's also a separate planning and zoning department authorization you have to obtain as well.
The food and wine industry are at the heart of our local economy. Which in turn drives the tourist economy throughout the entire Northern California wine country. People come from all over the world specifically for the wine and food here. The county can't risk a major food illness outbreak by either a CFO, restaurant, or food producer. So the standards and restrictions here are much higher than other counties. Even the restaurant inspections in this county far exceed state standards. But on the plus side the restaurants here are very clean.
The only way for anyone to know what they need to do to implement online sales of baked goods is to check with their local and state government. Aside from each jurisdiction developing their own regulations, regulations are modified/changed over time.