FTC Cracks Down on Health Claims by CBD Companies


The Federal Trade Commission has just announced a series of six settlements, which included individual monetary penalties, for false advertising by cannabidiol (CBD) companies. The targeted companies made claims that a variety of products containing CBD, including oils, balms, gummies, coffee, and other goods, could treat cancer, Alzheimer’s, heart disease, diabetes, and other serious ailments.

Operation CBDeceit – the first law enforcement crackdown on deceptive CBD claims – serves as a firm reminder about the restrictions on health claims in advertising. The FTC has a longstanding policy requiring that advertisers have reliable scientific evidence to support any health claims made to the public. CBD companies are no exception and must have evidentiary support for any health claims.

 

The FTC’s latest slate of settlements targeted unsubstantiated health claims by CBD manufacturers, including, but not limited to, the following:

The FTC’s proposed administrative orders settling the charges do not prohibit the manufacturers from making health claims in the future. Any future prevention, treatment, or safety claims about dietary supplements, foods, and drugs, however, must be supported by competent and reliable evidence, defined as randomized, double-blind, placebo-controlled human clinical trials to support the claims.


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National Law Review, Volume X, Number 352