CBD Product Manufacturers Named in Class Action Lawsuits

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BOULDER, Colo. – Two Colorado-based CBD product manufacturers, Charlotte’s Web Holdings, Inc. and Infinite Product Company, LLC, better known as Infinite CBD, are apparently to be named as defendants in class action lawsuits—both reportedly filed in California.

Charlotte’s Web, a pioneer in the CBD product industry, issued a press release Monday stating it had become aware of a class action suit on December 1 that had been filed in district court in Northern California, but not served to the company as of yet. The suit alleges Charlotte’s Web products are mislabeled as nutritional supplements, which is prohibited under federal policy.

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A short statement from Charlotte’s Web said, “The Company believes that its products are accurately labeled and that the claims are without merit. The Company intends to vigorously defend itself against any such suits.”

Supplement and nutrition industry news site NutraIngredients-USA.com reported more details on the suit. According to the site, plaintiff Michele McCarthy claims in the suit to have purchased olive-flavored CBD oil from Charlotte’s Web and that the product was “marketed” as an ingredient used as a dietary supplement.

Infinite CBD did not issue its own statement. Information about any pending lawsuit involving the company was scant.

In April, prior to a public comment period about policy for CBD-infused and other hemp-derived products, the Food and Drug Administration, in collaboration with the Federal Trade Commission (FTC), sent a spate of letters to three CBD product manufacturers, warning them to cease “unsubstantiated advertising claims.”

The FDA has been under increasing political pressure to develop and issue regulations for CBD-infused and hemp-derived products since passage of the 2018 Farm Act, which included provisions that allow industrial hemp cultivation. Kentucky Senator Mitch McConnell (R) has been a champion of hemp farming for constituents in his state.

The U.S. Department of Agriculture (USDA) also recently issued regulations for the new U.S. Domestic Hemp Production Program.

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