FTC Announces Crackdown on Deceptively Marketed CBD Products, “More Coming”

The Federal Trade Commission (FTC) announced on December 17, 2020, the first law enforcement crackdown on deceptive claims in the growing market for cannabidiol (CBD) products. The FTC is taking action against six sellers of CBD-containing products 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.

The FTC is an independent government agency charged with consumer protection which has the power to levy fines and require companies to notify their customers that the products they purchased do not have scientifically supported health benefits.  In other words, not only can the FTC fine the business, the business has to tell their customers that they basically lied to them, which opens up the company to consumer lawsuits.

The FTC also stated when unsubstantiated medical claims are made concerning CBD products, they will be contacting the companies.

If you are marketing CBD products, and are unsure what you can say on a label or in your marketing, contact your attorney.  We here at Loney Law Group can help you navigate the world of FTC rules.