Following a public comment period, the Federal Trade Commission has approved a final administrative consent order against Scottsdale, Arizona-based Kushly Industries LLC (Kushly) and the company’s owner, Cody Alt, for allegedly making false or unsupported health claims during the marketing and sale of cannabidiol (CBD) products to consumers.
According to the FTC’s May 2021 complaint, Kushly and Alt made false or unsubstantiated claims that their CBD products could effectively treat or cure a host of conditions—from common ailments, like acne and psoriasis, to more serious diseases, including cancer and multiple sclerosis. In addition, the complaint alleges the respondents falsely told consumers that scientific studies or research prove that CBD product effectively treat, mitigate, or cure the diseases, including hypertension, Parkinson’s disease, and Alzheimer’s disease.
The final order settling the FTC’s charges bars the respondents from the illegal conduct alleged in the complaint and requires them to pay the FTC $30,583.14—the amount consumers paid Kushly for products sold using the deceptive marketing.
The Commission vote approving the final administrative consent order was 4-0-1, with Chair Lina Khan not participating.
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