FTC Continues Crackdown On Unsupported CBD Marketing

Today, the U.S. Federal Trade Commission (FTC) announced a settlement in its most recent law enforcement action in its ongoing efforts to monitor the marketplace regarding misleading cannabidiol (CBD) product claims. The action targets Kushly Industries LLC (Kushly) and the company's sole officer for allegedly making false or unsupported health benefit claims about Kushly's CBD product.

The FTC's proposed resolution will bar Kushly and its officer "from making any representations about the health benefits, efficacy, safety or side effect about any covered product, including CBD products, unless the representations are true at the time they are made, are not misleading, and . rely upon competent and reliable scientific evidence .. It also requires them to secure and preserve any human clinical tests or studies they use to substantiate these health claims." The targets will also have to pay over $30,000 in consumer redress fines.