In December 2020, the FTC announced its first law enforcement crackdown on deceptive claims in the growing market for cannabidiol (CBD) products. The Commission took 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’s disease, and others. A summary of the proposed orders settling the agency’s respective complaint is provided below. The FTC announced final approval of all six orders in March 2021.
Bionatrol Health, LLC. The proposed administrative order prohibits 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. It requires the corporate respondents and individual respondent Marcello Torre to pay $20,000 to the FTC and to notify consumers of the order.