FTC fines for cheating in the drug-free cannabinoid market

In our country, this issue is not even on the agenda yet, so Ukraine has already become a stock of everything that cannot be realized in North America, Europe and even China, and it is extremely difficult to hold accountable for the implementation of a placebo at best, since These products in the overwhelming majority of cases are sold via the Internet and imported without any accompanying documents outside the framework of the current legislation. 

The US Federal Trade Commission (FTC) has announced it is prosecuting false claims in the CBD market by imposing fines and sanctions on six manufacturers accused of misleading consumers about the human health benefits of hemp extract. In particular, according to the information disseminated on the official website of the above-mentioned structure of information, six companies, without any reason, claimed the ability of their products to treat diseases such as cancer, high blood pressure and Alzheimer's disease.

Andrew Smith, Director of the Consumer Protection Bureau of the US Federal Trade Commission, during his conversation with reporters, emphasized that “We are not saying that CBD products cannot bring relief to certain categories of patients. However, the same rules apply to them as to all other health products. Under no circumstances can the information on the medicinal characteristics of the offered health products present on the market be exaggerated and thus provide consumers with false or false data. "

Companies subject to sanctions include:

•  BIONATROL HEALTH, LLC - penalties of $ 20,000 were imposed;

•  EPICHOUSE, LLC - $ 30,000 in penalties;

•  CBD MEDS, INC - it is ordered to stop selling products that contain information about their medicinal properties;

•  EASYBUTTER, LLC - $ 36,254 penalties imposed;

•  REEF INDUSTRIES, INC - penalties of $ 85,000 were imposed;

•  STEVES DISTRIBUTING, LLC - $ 75,000 penalties were imposed;

In clarifying the sanctions applicable to the aforementioned businesses, the FTC refers to illegal advertising statements that each of the above listed businesses have circulated in the marketplace. The falsehood of the information was that the acceptance of the products manufactured by the enterprises "will relieve consumers of pain, as well as the opportunity to feel years younger." In addition, claims from government officials included fake customer reviews claiming that the products cured rare diseases or replaced prescription drugs, including pain relievers.

Each of the above companies is also required to notify consumers within 45 days of the FTC sanctions imposed on them. They are required to do this by sending letters to anyone who has previously purchased cannabidiol (CBD) products.

Thereafter, the companies listed on the sanctions list must submit a report within 90 days, which must show the total number of customers identified and notified accordingly.

FTC officials say the CBD industry should look forward to further action in the near future to stop manufacturers' unsubstantiated claims of therapeutic benefits for products made with various cannabinoids that have not been officially confirmed by medical research.

Commentary of the Association "Ukrainian technical hemp"

Unfortunately, we have repeatedly pointed out the facts that entrepreneurs in almost all countries of the world are using the hype around the therapeutic properties of various components of the hemp plant in order to sell their products, attributing medicinal or health-improving properties to them. Unlike other economically developed countries, in the United States, for the first time, penalties are imposed for the sale of hemp products that do not meet the characteristics that are attributed to them. Unfortunately, in our country, this issue is not even on the agenda yet, so Ukraine has already become a stock of everything that cannot be realized in North America, Europe and even China, and it is extremely difficult to hold accountable for the implementation of a placebo at best. since these products in the overwhelming majority of cases are sold via the Internet and are imported without any accompanying documents outside the framework of the current legislation.