A federal agency announced on Wednesday that it will be refunding Americans who bought CBD products from a cannabis company that the government says made misleading medical claims.<\/p>\n
The Federal Trade Commission (FTC) said it will be sending a total of $21,000 to cover the costs of Kushly Industries LLC products that were \u201cdeceptively marketed\u201d to 576 consumers. People will be refunded about $36 each.<\/p>\n
\nFTC returning almost $21,000 to consumers nationwide who bought deceptively marketed CBD products from Kushly Industries: https:\/\/t.co\/hWZkVMgkXh<\/a><\/p>\n
\u2014 FTC (@FTC) August 24, 2022<\/a><\/p>\n<\/blockquote>\n\n
While FTC and the Food and Drug Administration (FDA) have stepped up their efforts to identify cannabis companies that they say are selling cannabinoid-based items with unsanctioned claims about medical benefits, this appears to be the first instance of a federal CBD refund to consumers.<\/p>\n
CBD derived from hemp is federally legal, as long as it doesn\u2019t contain more than 0.3 percent THC by drug weight, under the 2018 Farm Bill. But it\u2019s currently unregulated and untested by FDA.<\/p>\n
\u201cConsumers will receive either a PayPal payment or a check in the mail,\u201d FTC said<\/a>. \u201cThe deadline for consumers to cash their checks is November 22, 2022. PayPal payments must be claimed by September 23, 2022.\u201d<\/p>\n
This action<\/a> against the Arizona-based Kushly appears to stem out of an earlier, 2021 complaint that FTC filed against the company. The complaint alleged that the company was making unsanctioned claims that its products could treat everything from acne to cancer and cited scientific studies in an attempt to substantiate those claims.<\/p>\n
In 2020, FTC separately announced that it was launching an investigation against six cannabis companies that it said was making \u201cdeceptive\u201d claims about their products<\/a>.\u00a0 The enforcement action was called \u201cOperation CBDeceit.\u201d Kushly was not listed as one of those targeted businesses at the time.<\/p>\n
FTC, in conjunction with FDA, has previously warned or sued<\/a>\u00a0other companies about\u00a0claims related to CBD products<\/a>.<\/p>\n
Marijuana Moment reached out to FTC to inquire about why Kushly was singled out as part of this federal refund, but a spokesperson said that the commission \u201cdoesn\u2019t comment on the specific reasons that it chose to bring an action against any company, except what\u2019s in the press release and the complaint.\u201d<\/p>\n
He added that \u201cwe don\u2019t speculate on what actions will be taken in the future.\u201d<\/p>\n
FDA, for its part, also recently warned consumers about marijuana-infused copycat food products<\/a>\u00a0that resemble popular brands and the risks of accidentally ingesting THC, particularly for children.<\/p>\n
The agency separately\u00a0issued its first set of warnings<\/a>\u00a0to companies over the allegedly illegal sale of products containing the increasingly popular cannabinoid delta-8 THC.<\/p>\n
It sent five warning letters to companies that are marketing products with the intoxicating compound and making what the agency says are unsanctioned claims about their therapeutic potential.<\/p>\n
In May, FDA also sent warning letters to four cannabis companies<\/a> for allegedly making unauthorized claims about the medical benefits of CBD products they\u2019ve marketed for animals.<\/p>\n
At a congressional hearing that month, FDA Commissioner Robert Califf recognized that his agency has not taken meaningful steps to regulate CBD products<\/a>\u00a0over the years since hemp was legalized, but he also put the onus on Congress to empower the agency to more effectively facilitate rulemaking.<\/p>\n
The top Republican on a key congressional committee also called on leadership in May to schedule a hearing to hold FDA accountable<\/a>\u00a0for its lack of action to set regulations for CBD and delta-8 THC products.<\/p>\n
\nHere\u2019s How Many Marijuana Shops New York Plans To Approve In Each Region Of The State In The First Licensing Round<\/a><\/p>\n<\/blockquote>\n\n
Photo by Kimzy Nanney<\/a>.<\/em><\/p>\n
The post Feds Issue First Refunds For Cannabis Products That Were \u2018Deceptively Marketed\u2019 To Consumers<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
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