FTC Takes Action Against CBD Companies Making Deceptive Health Claims

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12/20/2020 – Last week the Federal Trade Commission (FTC) took action against 6 CBD companies for making health claims about their products that were not supported by scientific research. The FTC has authority to regulate fraudulent or deceptive business practices under the Federal Trade Commission Act.

All 6 companies were ordered to stop making unsubstantiated claims. In addition, some of the companies were fined, in amounts ranging from $20,000-$85,000.

Earlier this year, the Food and Drug Administration (FDA) sent warning letters to CBD companies that made false or misleading statements. The FDA has authority to regulate labeling claims under the Food, Drug and Cosmetic Act.

Read the full announcement on FTC’s website.