ARTICLE
30 September 2019

FTC Issues Warning Letters To CBD Companies

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Shook, Hardy & Bacon

Contributor

Shook, Hardy & Bacon has long been recognized as one of the premier litigation firms in the country. For more than a century, the firm has defended companies in their most substantial national and international products liability, mass tort and complex litigation matters.

The firm has leveraged its complex product liability litigation expertise to expand into several other practice areas and advance its mission of “being the best in the world at providing creative and practical solutions at unsurpassed value.” As a result, the firm has built nationally recognized practices in areas such as intellectual property, environmental and toxic tort, employment litigation, commercial litigation, government enforcement and compliance, and public policy.

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)
United States Food, Drugs, Healthcare, Life Sciences

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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