Skip to main content
Last Updated
Case Status
In the Matter of Reef Industries, Inc. a corporation, d/b/a and Reef Wellness; Cannatera, Inc., a corporation; Andhemp, Ltd., a limited company; Andrew M. Bouchie, individually and as an officer of Reef Industries, Inc., Cannatera, Inc. and Andhemp, Ltd.; John R. Cavanaugh, individually and as an officer of Reef Industries, Inc.; and Shaun Paquette, individually and as an officer of Reef Industries, Inc., Cannatera Inc. and Andhemp, Ltd.
FTC Matter/File Number
202 3064
Docket Number
Enforcement Type
Part 2 Consents

Case Summary

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.

Reef Industries, Inc. The proposed administrative order 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. It requires them to pay the FTC $85,000 and notify consumers of the Commission’s order.