CBD News

Advertising and Labelling Risks in CBD Industry

CBD is a Non psychoactive compound of marijuana having numerous benefits. CBD sales are on the rise with hemp-derived CBD now federally legalized by the agriculture improvement act as of 2018. Some analysts expect CBD sales to exceed $20 billion in 2024.

There is a dramatic expansion of consumer protection legislation coming into the CBD industry. Laws are being enacted to protect consumers, and there are lawsuits to hold companies accountable for misleading marketing. To help companies with this process, this article discusses some of the main federal rules that control advertising and labelling of CBD products. There are also tips for marketing these products.

 

Federal Laws Governing CBD Marketing

When you’re marketing or advertising CBD products for your company, it’s important to make sure they’re FDA and FTC compliant. This means that you have to follow the labelling guidelines set by the FDA and advertising guidelines set by the FTC.

 

FDA

FDA regulates different categories of cosmetics products. However, The FDA has issued a guideline relevant to CBD usage in cosmetics. However, it cannot be marketed as a drug without FDA approval. The most relevant to it are dietary supplements, foods, drugs and cosmetics.

Because CBD is an active ingredient in one drug approved by the FDA, it cannot be added to food or marketed as a dietary supplement. The FDA is expediting its efforts to come up with a regulatory framework for the marketing of hemp-derived CBD. Although it could take up to five years to do this, the FDA’s current positions apply – CBD cannot currently be marketed as a drug or dietary supplement.

 

FTC

It is necessary to comply with FTC regulations when advertising CBD products. If a company has a deceptive advertisement, they will need to either get rid of the misleading part or provide evidence for their objective claims in order to comply.

Companies must have scientific evidence of their foods effect on the body, or they are not allowed to make claims about a product’s ability to prevent an ailment. Firms should rely only on studies done by others that meet scientific standards of objectivity.

 

What is your opinion about CBD Marketing?

Companies have to intermittently evaluate their current framework for marketing & advertising of hemp-derived CBD products based on their potential health benefits, minimizing risk factors.

The creation of ads containing claims about CBD and its benefits is a tricky process. It is expensive, so companies need to be careful if they want to make such claims. We recommend that you purchase insurance. Although CBD marketing happens in a legal grey zone, it is a strict area for companies to be in. The best companies can still get into legal troubles and lawsuits if they’re not careful.

If you want to sell CBD products in the states or countries where it’s legal, you should consult an attorney or certain regulatory enforcement. The more aggressive you market your product, the higher your risk of being caught and fined by a regulatory agency.

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