The Federal Trade Commission (FTC) announced a major crackdown, Operation CBDeceit, against falsely advertised CBD products.
The FTC targeted CBD companies who produce and market oils, balms, gummies, coffee, and other items. The companies claimed their products could treat cancer, Alzheimer’s, hypertension, and heart disease.
Many CBD companies don’t realize that all content associated with their product, including labeling, websites, emails, social media, etc. make them liable for false claims. To avoid being penalized and called out by the FTC, brands must never make claims about CBD’s ability to treat specific conditions. This will only hurt the brand’s reputation and consumer trust.
“The six settlements announced today send a clear message to the burgeoning CBD industry: Don’t make spurious health claims that are unsupported by medical science,” Andrew Smith, Director of the FTC’s Bureau of Consumer Protection said in a statement. “Otherwise, don’t be surprised if you hear from the FTC.
The FTC is requiring each company to remove all false labels. Also, a portion of the companies will have to a pay a fine to the FTC. The companies included Epichouse LLC (First Class Herbalist CBD), Bionatrol Health, LLC, CBD Meds, Inc., and others.
In one case, Steves Distributing, LLC will be required to pay the FTC $75,000 for misleading health claims.
Operation CBDeceit is the first ever crackdown in the CBD space by the FTC with plans for more operations in the future. It appears as if the burgeoning and unregulated CBD industry is turning over a new page and finally landing within the auspices of the federal government.
As CBD users are become more informed, they will know what to look out for. It’s in the best interest of both consumers, brand integrity, and the overall health of the industry to not overpromise any CBD effects but rather focus on making clean quality products.
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