Customers Unite in Class-Action Lawsuits Against CBD Companies
While companies await for rules clarifications from the U.S. Food and Drug Administration (FDA), customers are trying out the new industry with class-action lawsuits.
There have been at least four lawsuits against CBD manufacturers in the US, according to Stat News, where customers complain that the companies engaged in “misleading” marketing, selling CBD products as dietary supplements.
So far it affects two large CBD products manufacturers Charlotte’s Web and CV Sciences and two smaller – Infinite CBD and Green Roads.
In all four class-action lawsuits, customers collectively ask the judges to make companies return all profits from selling CBD products. This could have a devastating effect on the emerging industry, shared the CEO of the Natural Products Association Daniel Fabricant:
“The implications are huge. I’m not going to say [the industry] goes away, but I think it gets pretty close to going away”
Such legal actions are not rare in diet supplementary industry. While CBD producers have avoided it until now, general counsel of the U.S. Hemp Roundtable Jonathan Miller predicts that the precedents will multiply, if FDA is not bringing clarity any time soon:
“We’re just going to see a lot of this sort of mischief go on until the FDA does what it needs to be doing, which is establishing a formal regulatory framework for CBD”
As Future Time previously reported, in November FDA has issued warning letters to 15 companies selling products containing Cannabidiol (CBD) for labelling them as diet supplements, without meeting the category definition.