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ARTICLE · 27 AUGUST 2020

Consumer Class Actions Against CBD Companies Are Hitting A Snag

Duane Morris LLP
Duane Morris LLP
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Over the past year, more and more consumer class actions have been filed against manufacturers and distributors of CBD-infused products.

United StatesLitigation, Mediation & Arbitration

Over the past year, more and more consumer class actions have been filed against manufacturers and distributors of CBD-infused products. These actions typically assert claims based on how the product is marketed, such as whether it (i) contained the advertised amount of CBD, (ii) contained more THC than it should have or (iii) has the ability to provide the therapeutic benefits touted. The marketing of these products is subject to regulation by FDA, which has yet to issue pertinent regulations that have been expected since passage of the 2018 Farm Bill legalizing hemp and CBD products derived therefrom. Thus, in recent months, a number of federal courts have stopped these class actions in their tracks pending further guidance from FDA as to how CBD-infused products should be regulated. This growing body of precedent should be welcome news for the CBD supply chain, as it may provide a disincentive to the plaintiffs' bar to expend their resources on similar actions until

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