{"id":2909,"date":"2020-12-20T18:53:51","date_gmt":"2020-12-20T18:53:51","guid":{"rendered":"https:\/\/imdeancarter.com\/SMK\/ftc-announces-crackdown-on-deceptively-marketed-cbd-products\/"},"modified":"2020-12-20T18:53:51","modified_gmt":"2020-12-20T18:53:51","slug":"ftc-announces-crackdown-on-deceptively-marketed-cbd-products","status":"publish","type":"post","link":"https:\/\/imdeancarter.com\/SMK\/ftc-announces-crackdown-on-deceptively-marketed-cbd-products\/","title":{"rendered":"FTC Announces Crackdown on Deceptively Marketed CBD Products"},"content":{"rendered":"

PRESS RELEASE<\/strong><\/p>\n

Companies made unsupported claims that their oils, balms, gummies, coffee, and other goods could treat serious diseases such as cancer and diabetes<\/strong><\/em><\/p>\n

The Federal Trade Commission today announced the first law enforcement crackdown on deceptive claims in the growing market for cannabidiol (CBD) products. The FTC is taking action against six sellers of CBD-containing products for allegedly making a wide range of scientifically unsupported claims about their ability to treat serious health conditions, including cancer, heart disease, hypertension, Alzheimer\u2019s disease, and others.<\/p>\n

The FTC is requiring each of the companies, and individuals behind them, to stop making such unsupported health claims immediately, and several will pay monetary judgments to the agency. The orders settling the FTC\u2019s complaints also bar the respondents from similar deceptive advertising in the future, and require that they have scientific evidence to support any health claims they make for CBD and other products.<\/p>\n

\u201cThe six settlements announced today send a clear message to the burgeoning CBD industry: Don\u2019t make spurious health claims that are unsupported by medical science,\u201d said Andrew Smith, Director of the FTC\u2019s Bureau of Consumer Protection. \u201cOtherwise, don\u2019t be surprised if you hear from the FTC.\u201d<\/p>\n

The crackdown, Operation CBDeceit, is part of the Commission\u2019s ongoing effort to protect consumers from false, deceptive, and misleading health claims made in advertisements on websites and through social media companies such as Twitter.<\/p>\n

Each case the FTC is announcing today is described below:<\/p>\n

Bionatrol Health, LLC<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against Utah-based companies Bionatrol Health, LLC and Isle Revive, LLC, and two former managers and owners<\/a>, since at least December 2019 the respondents sold a CBD oil to consumers on two websites. Among other things, the respondents allegedly claimed without substantiation that their CBD product is safe for all users, treats pain better than prescription medications like OxyContin, and prevents and treats age-related cognitive decline and chronic pain. The respondents also claimed, without scientific evidence, that CBD oil is \u201cmedically proven\u201d to improve a variety of conditions, according to the FTC\u2019s complaint. In addition, the FTC alleges the respondents deceived consumers who ordered one bottle of their CBD oil by changing the order to five bottles without consumers\u2019 consent.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a>\u00a0prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs without human clinical testing to substantiate the claims. It also requires competent and reliable scientific evidence for other health-related product claims, and prohibits the respondents from misrepresenting the cost of any good or service and from charging consumers without their express, informed consent. Finally, it requires the corporate respondents and individual respondent Marcello Torre to pay $20,000 to the FTC and to notify consumers of the Commission\u2019s order.<\/p>\n

Epichouse LLC (First Class Herbalist CBD)<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against Utah corporation Epichouse, LLC, which operated under several names, including First Class Herbalist, and the company\u2019s founder and owner, John Le<\/a>, since at least September 2019 the respondents sold several CBD products on their website, including oils, a pain-relief cream, coffee, and gummies.<\/p>\n

Among other alleged unsupported claims, Epichouse and Le promoted CBD as safe for all users, able to treat pain better than prescription medications such as OxyContin, and able to prevent a wide range of serious conditions, including cancer, diabetes, and heart disease. In their advertising, they also falsely claimed that CBD is scientifically proven to improve many serious health conditions\u2014including chronic pain and hypertension\u2014and provide neurological benefit\u2014such as preventing age-related cognitive decline\u2014according to the FTC\u2019s complaint.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a>\u00a0prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs, unless they have the human clinical testing to substantiate the claims. It requires them to have competent and reliable scientific evidence when making any other health-related product claims. Finally, the order requires the respondents to pay $30,000 to the FTC and notify consumers of the Commission\u2019s order.<\/p>\n

CBD Meds, Inc.<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against CBD Meds, Inc.; G2 Hemp, Inc.; and Lawrence Moses, a\/k\/a Lawrence D. Moses, Jr., individually and as an officer of the corporate entities<\/a>, the two companies advertised CBD oil on their website and on YouTube. In their ads, the FTC contends, the Winchester, California-based firms made a number of false or unsubstantiated claims, including that CBD effectively treats, prevents, or mitigates serious diseases and conditions like artery blockage, cancer, glaucoma, autism, and schizophrenia, among many others. The respondents also falsely represented that some of the efficacy claims were scientifically proven or that the U.S. government has confirmed the health benefits of CBD.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a> prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs, unless they have the human clinical testing to substantiate the claims. More broadly, it requires them to have competent and reliable scientific evidence when making any other health-related product claims. Finally, the order requires the respondents to notify consumers of the Commission\u2019s order.<\/p>\n

HempmeCBD<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against EasyButter, LLC, also d\/b\/a HempmeCBD, and its owner and officer Michael Solomon<\/a>, since at least January 2018, the respondents have sold CBD products on their website, including CBD-infused shea butter, gummies, lozenges, honey sticks, vape pens, and oils. The complaint alleges that HempmeCBD claimed its CBD products could treat or cure serious ailments like cancer-related symptoms, substance abuse, and AIDS. The complaint alleges HempmeCBD lacked the scientific substantiation for such health claims and falsely claimed to have studies showing CBD is effective at treating autism.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a>\u00a0prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs, unless they have the human clinical testing to substantiate the claims. It also requires them to have competent and reliable scientific evidence when making any other health-related product claims. Finally, it requires the respondents to pay the FTC $36,254 and to notify consumers of the Commission\u2019s order.<\/p>\n

Reef Industries, Inc.<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against California-based Reef Industries, Inc.; Cannatera, Inc.; AndHemp, Ltd., and the companies\u2019 three principals<\/a>, the respondents have sold a variety of CBD products directly to consumers on their website and Twitter accounts since at least January 2019 and misrepresented the health benefits of CBD. The FTC alleges that the respondents made unsubstantiated claims that CBD can prevent, cure, mitigate, or treat diseases and serious health conditions, including Alzheimer\u2019s disease, arthritis, autoimmune disease, and irritable bowel syndrome. The complaint also alleges the respondents falsely claimed that studies or scientific research prove that CBD is effective at treating, curing, or mitigating these diseases and conditions.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a>\u00a0prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs, unless they have the human clinical testing to substantiate the claims. More broadly, it requires them to have competent and reliable scientific evidence when making any other health-related product claims. Finally, it requires them to pay the FTC $85,000 and notify consumers of the Commission\u2019s order.<\/p>\n

Steves Distributing, LLC<\/strong><\/b><\/p>\n

According to the FTC\u2019s complaint against Steves Distributing, LLC, d\/b\/a Steve\u2019s Goods; and the company\u2019s CEO Steven Taylor Schultheis<\/a>, since beginning operations in 2018, the respondents have sold a variety of products containing both CBD and cannabigerol (CBG), which, like CBD, is a non-psychoactive compound derived from hemp. The company advertises its CBD and CBG products, including tinctures, gummies, capsules, topical balms, suppositories, bath balms, and coffee, on its website and through social media companies like Twitter.<\/p>\n

The FTC alleges that the respondents claimed, without adequate substantiation, that their CBD and CBG products are effective alternatives to prescription medications and treat a wide range of diseases and serious health conditions, including Alzheimer\u2019s disease, cancer, and diabetes. The complaint also alleges the respondents falsely claimed that their CBD and CBG products have antibacterial properties, prevent or reduce the risk of heart attacks, strokes, and other diseases, and that certain of these claims were supported by scientific evidence.<\/p>\n

The proposed administrative order settling the FTC\u2019s charges<\/a>\u00a0prohibits the respondents from making certain prevention, treatment, or safety claims about dietary supplements, foods, and drugs, unless they have the human clinical testing to substantiate the claims. More broadly, it requires them to have competent and reliable scientific evidence when making any other health-related product claims. Finally, it requires the respondents to pay the FTC $75,000 and notify consumers of the Commission\u2019s order.<\/p>\n

The Commission votes approving each of the six administrative complaints and proposed consent orders were 5-0, with Commissioner Rohit Chopra<\/a>\u00a0and Commissioner Christine S. Wilson<\/a>\u00a0issuing separate, concurring statements. A complete list of respondents can be found in the complaint for each respective case.<\/p>\n

The FTC will publish a description of the consent agreement package in the Federal Register soon. The agreement will be subject to public comment for 30 days after publication in the Federal Register after which the Commission will decide whether to make the proposed consent order final. Instructions for filing comments will appear in the published notice. Once processed, comments will be posted on Regulations.gov.<\/p>\n

NOTE:<\/strong><\/b> The Commission issues an administrative complaint when it has \u201creason to believe\u201d that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $43,280.<\/p>\n

The Federal Trade Commission works to promote competition and to protect and educate consumers<\/a>. You can learn more about consumer topics<\/a> and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov<\/a>. Like the FTC on Facebook(link is external)<\/a>, follow us on Twitter(link is external)<\/a>, get consumer alerts<\/a>, read our blogs<\/a>, and subscribe to press releases<\/a> for the latest FTC news and resources.<\/p>\n

PRESS RELEASE REFERENCE:\u00a0<\/strong><\/p>\n

FTC Order Stops the Marketer of \u201cThrive\u201d Supplement from Making Baseless Claims It Can Treat, Prevent, or Reduce the Risks from COVID-19<\/a><\/p>\n

FTC and FDA Warn Florida Company Marketing CBD Products about Claims Related to Treating Autism, ADHD, Parkinson\u2019s, Alzheimer\u2019s, and Other Medical Conditions<\/a><\/p>\n

FTC Sends Warning Letters to Companies Advertising Their CBD-Infused Products as Treatments for Serious Diseases, Including Cancer, Alzheimer\u2019s, and Multiple Sclerosis<\/a><\/p>\n

FTC Joins FDA in Sending Warning Letters to Companies Advertising and Selling Products Containing Cannabidiol (CBD) Claiming to Treat Alzheimer\u2019s, Cancer, and Other Diseases<\/a><\/p>\n

CONTACT INFORMATION<\/p>\n

MEDIA CONTACT:<\/p>\n

Mitchell J. Katz(link sends e-mail)<\/a><\/p>\n

Office of Public Affairs<\/p>\n

202-326-2161<\/p>\n

STAFF CONTACTS:<\/p>\n

Richard McKewen<\/p>\n

FTC\u2019s Northwest Region<\/p>\n

206-220-4595<\/p>\n

Keith Fentonmiller<\/p>\n

FTC\u2019s Bureau of Consumer Protection<\/p>\n

202-326-2775<\/p>\n

Keith Fentonmiller<\/p>\n

FTC\u2019s Bureau of Consumer Protection (Bionatrol Health, LLC)<\/p>\n

202-326-2775<\/p>\n

Brady Williams<\/p>\n

FTC\u2019s Bureau of Consumer Protection (Epichouse LLC)<\/p>\n

202-326-3517<\/p>\n

Barbara Chun<\/p>\n

FTC\u2019s Western Region, Los Angeles (CBD Meds, Inc.)<\/p>\n

310-824-4312<\/p>\n

Gideon Sinasohn<\/p>\n

FTC\u2019s Southeast Region (HempmeCBD)<\/p>\n

404-656-1356<\/p>\n

Nicholas Coates<\/p>\n

FTC\u2019s Western Region, San Francisco (Reef Industries, Inc.)<\/p>\n

415-848-5125<\/p>\n

Ronnie Solomon<\/p>\n

FTC\u2019s Western Region, San Francisco (Steves Distributing, LLC)<\/p>\n

415-848-5196<\/p>\n

The post FTC Announces Crackdown on Deceptively Marketed CBD Products<\/a> appeared first on Cannabis Business Executive – Cannabis and Marijuana industry news<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

PRESS RELEASE Companies made unsupported claims that their oils, balms, gummies, coffee, and other goods could treat serious diseases such as cancer and diabetes The Federal Trade Commission today announced the first law enforcement crackdown on deceptive claims in the growing market for cannabidiol (CBD) products. The FTC is taking action against six sellers of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2909","post","type-post","status-publish","format-standard","hentry","category-uncategorized","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"builder_content":"","_links":{"self":[{"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/posts\/2909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/comments?post=2909"}],"version-history":[{"count":0,"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/posts\/2909\/revisions"}],"wp:attachment":[{"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/media?parent=2909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/categories?post=2909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imdeancarter.com\/SMK\/wp-json\/wp\/v2\/tags?post=2909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}