New Jersey Law Jnl: FTC Calls Foul on CBD and Cannabis Marketing Claims During COVID-19 Pandemic

The Law Jnl writes…

Given the FDA’s ramped-up enforcement efforts, it is anticipated that we will see additional warning letters, lawsuits, and injunctive action taken in the foreseeable future in order to protect consumers during the pandemic.

Amid the COVID-19 pandemic, a number of cannabis companies that advertised CBD products as effective in preventing or treating COVID-19 without obtaining U.S. Food and Drug Administration (FDA) approval have become targets of Federal Trade Commission (FTC) enforcement actions. By way of example, on April 22, 2020, the FTC filed an administrative complaint against Marc Ching, individually and as Whole Leaf Organics, to cease unfair or deceptive practices and false advertisements for products affecting commerce in violation of the Federal Trade Commission Act. Two days later, the FTC petitioned the Unites States District Court, Central District of California, to enter a temporary restraining order and grant a preliminary injunction enjoining Marc Ching and Whole Leaf Organics from disseminating false or unsubstantiated advertisement claims that the CBD products marketed as CBD-EX, CBD-RX, and CBD-Max treat cancer, and the CBD product marketed as “Thrive” prevents or reduces risk associated with COVID-19. In response to the FTC complaint, Marc Ching and Whole Leaf Organics agreed to a preliminary order to cease advertising these claims.

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