The CBD market remains in flux as the FDA aims to create industry regulations within the upcoming months.
However, until they do come up with some sort of regulatory framework, business owners can expect to possibly receive FDA warning letters for selling certain CBD products such as edibles and supplements, or for making specific medical claims. Over the last few years, the FDA has issued warning letters to several businesses that either produce or sell products containing cannabidiol. Some companies that have received warning letters include big industry names such as The Stanley Brothers, owners of Charlotte’s Web, and Green Roads World (formerly known as Green Roads Health.)
Because these products are not approved by FDA for the “diagnosis, cure, mitigation, treatment, or prevention of any disease”, companies need to be very careful with their wording and advertising if they want to stay out of hot water, and consumers should always check reviews and lab results before making any purchases.
Almost immediately after the revised Farm Bill was signed by President Donald Trump on December 20, 2018, the FDA wasted no time announcing that despite hemp being newly legalized, CBD still is not. But there is a silver lining. FDA Commissioner Scott Gottlieb stated to CNBC reporters that, “We have recognized the impending prospects that cannabis or cannabis-derived composites can provide and recognize the noteworthy interest in these possibilities. We are dedicated to pursuing a well-organized administrative framework for letting product developers that meet up the conditions under our power to legally market these sorts of products.”
FDA warning letters might be coming your way
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The FDA plans to hold a series of public meetings looking for input from industry stakeholders regarding the best approach to develop a government-approved CBD marketplace. But in the meantime, any company selling CBD products claiming to treat ailments that are not backed by federally recognized studies are subject to receiving these FDA warning letters and further legal action if the letter is ignored.