Feds Announce Final Order Against Brands Targeted in Last Year’s Crackdown

The CBD companies targeted by last December’s federal crackdown – “Operation CBDeceit” – last week agreed to administrative consent orders with the Federal Trade Commission that bars them from “allegedly illegal conduct” with some having to pay fines.

The ‘illegal conduct’ includes making false health claims about CBD.

“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.” – FTC in a press release, Mar. 5, 2021

California-based Reef Industries was ordered to pay an $85,000 fine, according to FTC documents. Steve’s Distributing (aka Steve’s Goods) was fined $75,000; Bionatrol Health was fined $20,000; Epichouse LLC (First Class Herbalist CBD) was fined $30,000; and HempmeCBD was ordered to pay $36,254.

The sixth company, CBD Meds, was not issued a fine but was ordered to notify customers of the FTC order. Each agreement was unanimously approved by the commission.

Last spring, the agency took the rare step of filing a lawsuit against CBD company Whole Leaf Organics over the company’s claims that their products treat cancer and prevents or reduces COVID-19 risk.

In December 2019, the Food and Drug Administration issued five warning letters to companies selling CBD products over the companies’ health claims regarding the cannabinoid.