Lawsuits are targeting CBD companies for false advertising in the U.S.

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Despite controversies and plenty of people predicting the end of the CBD industry — or at least a decrease in its popularity — the world’s interest in the cannabinoid continues to grow. But now, there are lawsuits being thrown around, and this might actually mean trouble for the industry.

Just like the other dietary supplements that came before them, lawsuits are targeting companies that sell CBD products without any scientific evidence that supports the medicinal benefit claims that accompany CBD.

According to a report from Stat, the companies that have been targeted include two of the largest in the industry: Charlotte’s Web and CV Sciences. These lawsuits use a language that demands a refund for all American customers who’ve purchased a product from one of these companies.

Plaintiffs argue that the products sold are illegal because they contain CBD, which, having no scientific support, is a sham. If judges were to agree with this opinion, manufacturers would have to issue refunds for all the profits made from CBD products, a surely devastating blow for these relatively new companies.

Consumers who issued the lawsuit explain that the targeted companies engaged in “false, fraudulent, unfair, deceptive, and misleading” marketing of their CBD products by suggesting that the cannabinoid was similar to a dietary supplement.

“The implications are huge,” says Daniel Fabricant, CEO of the Natural Products Association. If the companies were to lose the lawsuit, he speculates that the blow would be catastrophic. “I’m not going to say [the CBD industry] goes away, but I think it gets pretty close to going away.”

While it’s hard to find an unbiased opinion regarding CBD — most people are either for it or against it — this is a problem that has been influenced by the FDA’s inability to make a decision regarding the compound. As long as there’s no legal framework for CBD, the industry will remain on shaky ground and subject to plenty of more accusations and lawsuits.

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