Source - Food & Beverage Litigation Update | Issue 725

FTC Issues Warning Letters to CBD Companies

The U.S. Federal Trade Commission has announced that it sent warning letters to three companies selling “oils, tinctures, capsules, ‘gummies,’ and creams containing cannabidiol (CBD), a chemical compound derived from the cannabis plant.” The announcement notes that the letters warn the companies—which have not been identified—that “it is illegal to advertise that a product can prevent, treat, or cure human disease without competent and reliable scientific evidence to support such claims.” The agency states that each company marketed its CBD products as able to “treat or cure serious diseases and health conditions,” such as relieving “even the most agonizing pain” or treating autism, anorexia, schizophrenia, Alzheimer’s disease, traumatic brain injuries and other conditions.

“In the letters, the FTC urges the companies to review all claims made for their products, including consumer testimonials, to ensure they are supported by competent and reliable scientific evidence. The letters also warn that selling CBD products without such substantiation could violate the FTC Act and may result in legal action that could result in an injunction and an order to return money to consumers. The letters instruct the companies to notify the FTC within 15 days of the specific actions they have taken to address the agency’s concerns,” the announcement states.

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