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FTC Cracks Down on CBD Retailers for Allegedly Deceptive Health Marketing Claims

  • The FTC approved final administrative consent orders against cannabidiol (“CBD”) companies Bionatrol Health, LLC, HempmeCBD, Epichouse LLC, CBD Meds, Inc., Reef Industries, Inc., and Steves Distributing, LLC, and related companies and individuals that allegedly used unsubstantiated or deceptive health claims to market CBD products in violation of the FTC Act.
  • The complaints against Bionatrol Health, Epichouse, CBD Meds, HempmeCBD, Reef Industries, and Steves Distributing alleged that they made scientifically unsupported claims about the ability of their products to treat serious medical conditions such as Alzheimer’s disease, cancer, and AIDS, and to manage pain better than prescription medications like OxyContin, among other things.
  • Under the terms of the consent decrees, Bionatrol Health will pay $20,000, HempmeCBD will pay over $36,000, Epichouse will pay $30,000, Reef Industries will pay $85,000, and Steves Distributing will pay $75,000 to the FTC. All defendants, including CBD Meds, must cease using unsubstantiated health claims in their marketing and notify consumers who bought relevant products about the FTC’s action and that the vendor has no proof of its marketing claims, among other things.