FTC Approves Final Administrative Consent Orders against Sellers of Deceptively Marketed CBD Products

Following a public comment period, the Federal Trade Commission has approved final administrative consent orders against six companies selling cannabidiol (CBD) products nationwide.

In December 2020, the Commission announced its first law enforcement crackdown on deceptive claims in the growing market for CBD products. The FTC took action against the six sellers for allegedly making a wide range of scientifically unsupported claims about their ability to treat serious health conditions, including cancer, heart disease, hypertension, Alzheimer’s disease, and others. In the sweep, the FTC filed complaints against: 1) Bionatrol Health, LLC; 2) Epichouse LLC (First Class Herbalist CBD); 3) CBD Meds, Inc.; 4) HempmeCBD; 5) Reef Industries, Inc.; and 6) Steves Distributing, LLC. A description of the FTC’s specific allegations against each company can be found in the press release announcing the crackdown.

Each of the respondents agreed to a proposed administrative consent order settling the FTC’s charges. The orders both prohibited them from the allegedly illegal conduct detailed in the respective complaint and required several respondents to pay money to the FTC.

The Commission votes approving final consent orders against Bionatrol Health, LLC and HempmeCBD were each 5-0.

The votes approving the final consent orders against Epichouse LLC (First Class Herbalist CBD); CBD Meds, Inc.; and Reef Industries, Inc. were each 4-0.

The vote approving the final order against Steves Distributing, LLC was 4-0, with Acting Chairwoman Rebecca Kelly Slaughter and Commissioner Rohit Chopra dissenting in part.