FTC Speaks Out On Crackdown of False CBD Advertising
- The FTC has released statements on CBD enforcement of false advertising and is urging federal regulators to put a focus on the bigger picture.
- Two members from the FTC published public responses on the enforcement actions taken against six CBD suppliers.
- Although the FTC ultimately supports enforcement actions being taken, they want to make sure regulators are also targeting the disordered treatment industry, specifically with a focus on opioids.
The Federal Trade Commission (FTC) has spoken out about federal regulators cracking down on CBD companies over false advertising. And despite their agreement that it’s an issue that needs to be addressed, the FTC is urging caution to federal regulators about the way they’re handling the situation overall.
Rohit Chopra and Christine S. Wilson, two members of the five-person team on the FTC, have recently published public responses to the enforcement actions taken against six CBD distributors, the first case of CBD enforcements resulting in monetary judgements.
In his statement, Chopra expressed his support for CBD enforcement, but emphasized the importance of focusing on opioid companies and warning against a “chilling” effect that these enforcements may have on cannabis research.
“Going forward .. the FTC will need to refocus its efforts on health claims by targeting abuses in the substance use disorder treatment industry, shifting attention toward large businesses, and making more effective use of the FTC’s Penalty Offense Authority.”
Chopra also added that he’s “concerned that we have largely ignored Congressional concerns about unlawful opioid treatment practices.”
Wilson, on the other hand, has a primary concern over the CBD enforcement actions “chilling,” or slowing, the new industries’ efforts toward cannabis research and development.
“The commission should be careful to avoid imposing an unduly high standard of substantiation that risks denying consumers truthful, useful information, may diminish incentives to conduct research, and could chill manufacturer incentives to introduce new products to the market,” Wilson said.