FTC Cracks Down on Deceptive CBD Claims

Approves final administrative consent orders against sellers of falsely marketed products
Photograph: Shutterstock

WASHINGTON The Federal Trade Commission (FTC), following a public comment period, has approved final administrative consent orders against six companies selling cannabidiol (CBD) products nationwide.

The commission in December 2020 announced its first law enforcement crackdown on deceptive claims in the growing market for CBD products. The FTC took action against the six sellers for allegedly making a wide range of scientifically unsupported claims about their ability to treat serious health conditions, including cancer, heart disease, hypertension, Alzheimer’s disease and others.

In the sweep, the FTC filed complaints against: Bionatrol Health LLC, Epichouse LLC (First Class Herbalist CBD), CBD Meds Inc., HempMe CBD, Reef Industries Inc., and Steves Distributing LLC.

Each of the respondents agreed to a proposed administrative consent order settling the FTC’s charges. The orders both prohibited them from the allegedly illegal conduct detailed in the respective complaint and required several respondents to pay money to the FTC.

The commission votes approving final consent orders against Bionatrol Health LLC and HempMe CBD were each 5-0.

The votes approving the final consent orders against Epichouse LLC (First Class Herbalist CBD), CBD Meds Inc. and Reef Industries Inc. were each 4-0.

The vote approving the final order against Steves Distributing LLC was 4-0, with Acting Chairwoman Rebecca Kelly Slaughter and Commissioner Rohit Chopra dissenting in part.

In a other government news, the U.S. Food and Drug Administration in February held off on a final ruling on how it will regulate CBD sales.

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