Friday, April 3, 2020
Home Cannabis Lawsuits Are Targeting CBD Companies For False Advertising

Lawsuits Are Targeting CBD Companies For False Advertising

Customers feeling cheated by CBD are suing some of the largest companies in the industry.

Despite controversies and plenty of people predicting the end of the CBD industry — or at least a decrease in its popularity — the world’s interest in the cannabinoid continues to grow. But now, there are lawsuits being thrown around, and this might actually mean trouble for the industry.

Just like the other dietary supplements that came before them, lawsuits are targeting companies that sell CBD products without any scientific evidence that supports the medicinal benefit claims that accompany CBD.

RELATED: The FDA’s Stance On CBD Is Confusing Consumers

According to a report from Stat, the companies that have been targeted include two of the largest in the industry: Charlotte’s Web and CV Sciences. These lawsuits use a language that demands a refund for all American customers who’ve purchased a product from one of these companies.

The FDA's Relationship To CBD Is Confusing Everyone
Photo by IRA_EVVA/Getty Images

Plaintiffs argue that the products sold are illegal because they contain CBD, which, having no scientific support, is a sham. If judges were to agree with this opinion, manufacturers would have to issue refunds for all the profits made from CBD products, a surely devastating blow for these relatively new companies.

RELATED: FDA Warns 15 Companies For Selling CBD Products That Violate FD&C Act

Consumers who issued the lawsuit explain that the targeted companies engaged in “false, fraudulent, unfair, deceptive, and misleading” marketing of their CBD products by suggesting that the cannabinoid was similar to a dietary supplement.

“The implications are huge,” says Daniel Fabricant, CEO of the Natural Products Association. If the companies were to lose the lawsuit, he speculates that the blow would be catastrophic. “I’m not going to say [the CBD industry] goes away, but I think it gets pretty close to going away.”

RELATED: Congress Lays Out Expectations For FDA On Hemp-CBD In Budget Report

While it’s hard to find an unbiased opinion regarding CBD — most people are either for it or against it — this is a problem that has been influenced by the FDA’s inability to make a decision regarding the compound. As long as there’s no legal framework for CBD, the industry will remain on shaky ground and subject to plenty of more accusations and lawsuits.

Support Us!

If you enjoy The Fresh Toast and want to continue to see us produce entertaining and consumer focused content around the cannabis and entertainment industries please consider donating to us

$

FOR A WEEKLY DOSE OF THE FRESH TOAST

Hand selected from our editors with all the latest news and entertainment with a side of cannabis.

MUST READ

Here’s What You Should Know About CBD Canned Drinks

Some experts predict CBD canned drinks will rake in $11 million in sales by 2025. Here’s what you should know about these products. Cannabis canned...