The CBD companies targeted by last December’s federal crackdown – “Operation CBDeceit” – last week agreed to administrative consent orders with the Federal Trade Commission that bars them from “allegedly illegal conduct” with some having to pay fines.
The ‘illegal conduct’ includes making false health claims about CBD.
“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.” – FTC in a press release, Mar. 5, 2021
California-based Reef Industries was ordered to pay an $85,000 fine, according to FTC documents. Steve’s Distributing (aka Steve’s Goods) was fined $75,000; Bionatrol Health was fined $20,000; Epichouse LLC (First Class Herbalist CBD) was fined $30,000; and HempmeCBD was ordered to pay $36,254.
The sixth company, CBD Meds, was not issued a fine but was ordered to notify customers of the FTC order. Each agreement was unanimously approved by the commission.
Last spring, the agency took the rare step of filing a lawsuit against CBD company Whole Leaf Organics over the company’s claims that their products treat cancer and prevents or reduces COVID-19 risk.
In December 2019, the Food and Drug Administration issued five warning letters to companies selling CBD products over the companies’ health claims regarding the cannabinoid.
Get daily cannabis business news updates. Subscribe
Thanks for reading our latest news article. Stay up to date on the latest hemp news, sourced and approved by HempRevs. If you have any questions or comments, please feel free to leave us a message in the comments!
Sign up for our weekly newsletter to stay up to date on the latest Industry news and keep a look out for our next post!
Source Disclaimer: This article was was sourced from Ganjapreneur.com (the Original Publisher). In order to maintain the functionality, trust, and safety of HempRevs.com, the content sourced from the Original Publisher may have been altered. Read the original article here:
Feds Announce Final Order Against Brands Targeted in Last Year’s Crackdown