Mike Montemarano, Associate Editor 03.08.21
Following its first announcement regarding a crackdown known as “CBDeceit,” the U.S. Federal Trade Commission (FTC) announced its final administrative consent orders against six companies found to be making deceptive marketing claims related to disease treatment regarding their CBD products. This represents the first legal action the Commission has taken against marketers of CBD.
The actions against these CBD marketing claims had to do with six sellers who were charged with making a wide arrange of scientifically unsupported claims about their CBD products being able 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.; HempmeCBD; Reef Industries, Inc.; and Steves Distributing, LLC. A description of the marketing claims each company in question made can be found here.
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 a fee to the FTC.
The votes approving the final consent orders against Bionatrol Health and HempmeCBD were each 5-0, with the votes on the orders against Epichouse LLC, CBD Meds, Inc., and Reef Industries Inc. each 4-0. Acting Chairwoman Rebecca Kelly Slaughter and Commissioner Rohit Chopra dissented in part on the final order against Steves Distributing, LLC, which had a final tally of 4-0.
The actions against these CBD marketing claims had to do with six sellers who were charged with making a wide arrange of scientifically unsupported claims about their CBD products being able 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.; HempmeCBD; Reef Industries, Inc.; and Steves Distributing, LLC. A description of the marketing claims each company in question made can be found here.
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 a fee to the FTC.
The votes approving the final consent orders against Bionatrol Health and HempmeCBD were each 5-0, with the votes on the orders against Epichouse LLC, CBD Meds, Inc., and Reef Industries Inc. each 4-0. Acting Chairwoman Rebecca Kelly Slaughter and Commissioner Rohit Chopra dissented in part on the final order against Steves Distributing, LLC, which had a final tally of 4-0.
