The complicated and politically charged landscape of federal and state laws and regulations governing Hemp CBD-derived products requires businesspeople tread carefully in every area of operations, from manufacturing to packaging and labeling to sales and marketing and order fulfillment.
Following the enactment of the Agriculture Improvement Act of 2018 (a.k.a. the 2018 Farm Bill), the United States Food and Drug Administration (FDA) issued a statement declaring unlawful the sale and marketing of conventional foods and dietary supplements infused with hemp-derived cannabidiol (Hemp CBD).
In spite of the FDA’s stance, many states have legalized the manufacture and/or sale of Hemp CBD-derived products, passing legislation that in many cases is inconsistent with the FDA’s position and policies.
This disconnect between federal and state laws and policies creates significant risk management challenges for Hemp CBD businesses, which need to become expert in laws and regulations across multiple jurisdictions.
In addition to imposing manufacturing and testing requirements, many states that allow or regulate the manufacture, distribution, marketing or sale of Hemp CBD products require product labels contain jurisdiction-specific information. A complicated patchwork of state regulations forces manufacturers, distributors, marketers, and sellers of Hemp CBD products to implement different labeling and marketing protocols in each market in which products are sold and marketed. The need to adhere strictly to labeling regulations has been reinforced by a recent uptick in lawsuits against Hemp CBD companies for alleged mislabeling and deceptive marketing.