- The FTC will now begin to bypass warning letters to companies and instead begin filing lawsuits.
- Whole Leaf Organics avoided a lawsuit from the federal government by agreeing to comply with a warning they received earlier on.
- The federal government is beginning to crack down hard on predatory CBD companies with false claims regarding the coronavirus.
The U.S. Federal Trade Commission (FTC) will no longer be issuing warnings to CBD companies who make false claims about their product and the coronavirus, and instead will begin to hand down lawsuits in an attempt to quickly put a stop to the growing amount of false advertising.
One particular CBD company, Whole Leaf Organics, decided to respond urgently to the federal government’s crackdown by settling the dispute at hand. Marc Ching, owner of Whole Leaf Organics, settled the suit by agreeing to put a halt on any health claims about his products. One advertisement for his products claimed them to be an “anti-viral wellness booster.”
Ching’s following three products were all marked to have possessed false claims:
Ching has agreed to put a stop on any indications that his products may help to treat or prevent the coronavirus, but does not accept liability for the action. The full order can be found here.
Whole Leaf Organics received a warning from the U.S. Food and Drug Administration (FDA) last year that their CBD products were not to be advertised as a safe ingredient for food and other dietary supplements.
Andrew Smith, the U.S. Bureau of Consumer Protection Director, made a statement on the matter, quoting:
“Let’s be clear: companies making these claims can look forward to an FTC lawsuit like this one.”
The announcement that the FTC and Whole Leaf Organics reached a settlement comes as no surprise as the federal government continues to escalate their actions toward CBD companies making false claims regarding COVID-19.
Keep an eye out for any definitive claims that CBD companies advertise. It is always best to avoid these companies and make sure you are buying from a reputable business who sell the best CBD products.
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