Due to Misleading Health Claims, Federal Regulators Will Refund $21,000 in CBD Purchases.

By Hunter Dublin | August 29, 2022

Per the Marijuana Moment report, the Federal Trade Commission (FTC) has declared that it will compensate consumers for CBD products that made false medical claims. The FDA stated that it will refund $576 persons, totaling $21,000, for products sold by Kushly Industries LLC.

The move appears to be tied to a 2021 complaint by the FTC in which the Arizona-based company claimed CBD could cure anything from acne to cancer.

Because the FTC and the Food and Drug Administration (FDA) have mostly taken a hands-off approach to misleading CBD labeling, this is the FTC's first-ever refund.

The actions follow the FTC's investigation of six CBD companies for making fraudulent claims two years ago. The operation, dubbed CBDeceit, did not, however, include Kushly. Furthermore, the FDA has increased cannabinoid enforcement, sending five warning letters to companies selling delta-8 THC and four others to CBD companies making fraudulent claims about animals and CBD.

Congress has been putting pressure on FDA Commissioner Robert Califf to regulate the CBD sector more. In a recent hearing, he acknowledged that the FDA has not regulated CBD as well as it should have. Still, he suggested that Congress may make it easier for the agency to make the rules.