FTC Announces Crackdown On CBD
FTC Announces Crackdown On CBD
Every Hemp-CBD company out there should reevaluate their marketing strategy in light of this breaking announcement.
On December 17, 2020, the Federal Trade Commission (FTC) announced a crackdown on deceptively marketed CBD products (the Announcement). We have been warning about the FTC’s regulatory authority over CBD, so while the announcement is important, it is not necessarily surprising. The cannabis industry, especially businesses involved in the manufacture and sale of hemp-derived cannabidiol (Hemp-CBD), should take note of the FTC’s first law enforcement crackdown because we expect more to follow.
The Announcement focused on the FTC’s enforcement actions against six sellers of Hemp-CBD products who the FTC claims made unsupported claims about their products treating serious health conditions. Here is what that looks like, per the Announcement:
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