Since passage of the “Farm Bill” which legalized hemp-derived CBD containing less than 0.3% THC, the Federal Trade Commission has twice issued warning letters to marketers of CBD products.
In March 2019, the FTC and U.S. Food and Drug Administration issued warning letters to companies that allegedly made false and unsubstantiated “disease treatment” claims for CBD products. The letters alleged that various advertisements expressly and/or impliedly represented that products could effectively treat diseases, including cancer, Alzheimer’s disease, fibromyalgia and “neuropsychiatric disorders,” and that the products had anti-emetic, anti-convulsive, anti-inflammatory and analgesic properties.
In September 2019, the FTC sent another round of warning letters to companies advertising CBD-infused products as treatments for serious diseases. According to at least one FTC lawyer, each company advertised that its CBD products treat or cure serious diseases and health conditions with reasonable evidence to support such claims.
Legal practitioners believe that the probationary period is coming to an end and that regulatory investigations and enforcement actions against marketers for failing to follow the FTC’s claim substantiation requirements are looming.
The FDA is operating on a relatively parallel path.
Consider that in September 2019 Senate Majority Leader Mitch McConnell proposed language that directs the Food and Drug Administration to issue policies on regulating the use hemp-derived cannabidiol in products. The proposed language states that the FDA is encouraged to consider existing and ongoing medical research related to CBD that is being undertaken pursuant to an Investigation New Drug application in the development of a regulatory pathway for CBD in products under the jurisdiction of FDA and to ensure that any future regulatory activity does not discourage the development of new drugs.
The FDA recently issued a press release stating that it is unlawful to sell food or dietary supplements containing hemp-derived CBD. Consequently, marketers that sell such products without first consulting with and FTC compliance attorney risk local, state and federal enforcement action.
Interestingly, a letter was recently circulated by two Congressional representatives urging members of the House to demand that the FDA implement regulations that would allow the use of hemp-derived CBD in food and dietary supplements. Query whether such regulations would preempt state law.
Richard B. Newman is an FTC attorney at Hinch Newman LLP. Follow him on Twitter @ FTC defense attorney.
Informational purposes only. Not legal advice. Advertising Material.
CBD Advertising and FTC Enforcement
Since passage of the “Farm Bill” which legalized hemp-derived CBD containing less than 0.3% THC, the Federal Trade Commission TC has twice issues warning letters to marketers of CBD products.
In March 2019, the FTC and U.S. Food and Drug Administration issue warning letters to companies that allegedly made false and unsubstantiated “disease treatment” claims for CBD products. The letters alleged that various advertisements expressly and/or impliedly represented that products could effectively treat diseases, including cancer, Alzheimer’s disease, fibromyalgia and “neuropsychiatric disorders,” and that the products had anti-emetic, anti-convulsive, anti-inflammatory and analgesic properties.
In September 2019, the FTC sent another round of warning letters to companies advertising CBD-infused products as treatments for serious diseases. According to at least one FTC lawyer, each company advertised that its CBD products treat or cure serious diseases and health conditions with reasonable evidence to support such claims.
Legal practitioners believe that the probationary period is coming to an end and that regulatory investigations and enforcement actions against marketers for failing to follow the FTC’s claim substantiation requirements are looming.
The FDA is operating on a relatively parallel path.
Consider that in September 2019 Senate Majority Leader Mitch McConnell proposed language that directs the Food and Drug Administration to issue policies on regulating the use hemp-derived cannabidiol in products. The proposed language states that the FDA is encouraged to consider existing and ongoing medical research related to CBD that is being undertaken pursuant to an Investigation New Drug application in the development of a regulatory pathway for CBD in products under the jurisdiction of FDA and to ensure that any future regulatory activity does not discourage the development of new drugs.
The FDA recently issued a press release stating that it is unlawful to sell food or dietary supplements containing hemp-derived CBD. Consequently, marketers that sell such products without first consulting with and FTC compliance attorney risk local, state and federal enforcement action.
Interestingly, a letter was recently circulated by two Congressional representatives urging members of the House to demand that the FDA implement regulations that would allow the use of hemp-derived CBD in food and dietary supplements. Query whether such regulations would preempt state law.
Richard B. Newman is an FTC attorney at Hinch Newman LLP. Follow him on Twitter @ FTC defense attorney.
Informational purposes only. Not legal advice. Advertising Material.