Following a public comment period, the Federal Trade Commission has approved final administrative consent orders against six companies selling cannabidiol (CBD) products nationwide.
In December 2020, the Commission announced its first law enforcement crackdown on deceptive claims in the growing market for CBD products. The FTC took action against the six sellers 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. In the sweep, the FTC filed complaints against: 1) Bionatrol Health, LLC; 2) Epichouse LLC (First Class Herbalist CBD); 3) CBD Meds, Inc.; 4) HempmeCBD; 5) Reef Industries, Inc.; and 6) Steves Distributing, LLC. A description of the FTC’s specific allegations against each company can be found in the press release announcing the crackdown.
Each of the respondents agreed to a proposed administrative consent order settling the FTC’s charges. The orders both prohibited them from the allegedly illegal conduct detailed in the respective complaint and required several respondents to pay money to the FTC.
The vote approving the final order against Steves Distributing, LLC was 4-0, with Acting Chairwoman Rebecca Kelly Slaughter and Commissioner Rohit Chopra dissenting in part.
The Federal Trade Commission works to promote competition, stop deceptive and unfair business practices and scams, and educate consumers. Report fraud, scams, or bad business practices at ReportFraud.ftc.gov. Get consumer advice at consumer.ftc.gov. Also, follow the FTC on social media, subscribe to press releases, and read the FTC’s blogs.