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The FTC Issues Refunds To CBD Buyers, And Here’s Why

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This article was written by Joanna Scobel and originally published on Benzinga.

Recently, the Federal Trade Commission (FTC) announced that it will send payments to 576 consumers across the country who bought “misleadingly marketed” cannabidiol (CBD) Products from Kushly Industries LLC, based in Arizona.

according to Federal agency statement“Consumers will receive a PayPal (NASDAQ:PYPL) payment or check in the mail. The consumer check payment deadline is November 22, 2022. PayPal payments must be claimed by September 23, 2022.” Additionally, each consumer will receive an average of $36 each consumer.

In total, the FTC will return nearly $21,000 to consumers who have been deceived by Kushly’s baseless claims about its CBD products.


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Strengthening competition, protecting and educating consumers

2020-marijuana-sales record

To protect the rights of consumers in the CBD, the FTC filed a complaint in March 2021 against Kushly and its CEO Cody Alt, alleging that the company “Make false or unfounded claims that their CBD products can effectively treat or treat a range of conditions, from common ailments, such as acne and psoriasis, to more serious ones, including cancer and multiple sclerosis.”

At the time, Daniel Kaufman, acting director of the Federal Trade Commission’s Office of Consumer Protection, said, “This is the seventh case we have brought against CBD sellers who should know better than to make unsupported health claims for their products.”

The complaint alleged that the company “It has been wrongly claimed that studies or scientific research have shown that CBD products effectively treat, mitigate, or treat diseases, including high blood pressure, Parkinson’s disease, and Alzheimer’s disease.”


What is the difference between CBD and THC?

Role of the FTC and FDA in Regulating CBD

Glass bottle and dish of CBD oil or THC oil with hemp or hemp buds on a watercolor blue background

The two offices that work together to regulate CBD products are the Federal Trade Commission (FTC) and the Food and Drug Administration (FDA).


The FTC has the primary mandate to protect public health and Enhancing competition in the CBD market.

During FTC’s CBDeceit process, Launched last December 2020, they are going after CBD companies that have been advertising their products on their websites and social media platforms with false health claims.

For consumers, the Federal Trade Commission (FTC) has made it easier for them to receive support regarding counterfeit or questionable CBD products.

Food and Drug Administration

The The Food and Drug Administration protects public health By ensuring the safety and efficacy of consumer products, including hemp and products derived from it.

The Food and Drug Administration (FDA) is the main office that approves new CBD products. According to the Medicines and Cosmetics Act:

  • CBD should not be labeled as a dietary supplement
  • CBD cannot be added to food for humans and animals

Counterfeit marijuana products are very dangerous for children

In addition, the US Food and Drug Administration said THC food can easily be mistaken For commonly eaten foods such as breakfast cereals, candy and biscuits, which are accidentally ingested, which can lead to adverse events, Especially in children.

Study led by researchers in New York School of Global Public Health revealed that food is ‘fake’ They can contain levels of THC or THC “well above the limits set by government cannabis regulations” and are easily confused with common snack foods.

in June, The FDA has issued a warning To all consumers regarding children’s accidental ingestion of food products containing THC.


Benzinga The mission is to connect the world with news, data, and education that makes the path to financial prosperity easier for everyone, every day.

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