Articles Posted in CBD lawyer

Opportunities to advertise California CBD, hemp, and cannabis have expanded significantly this year. Los Angeles marijuana businesses interested in tapping into these new marketing opportunities may find success in reaching wider audiences – but they still must be cautious in their approach. Smart sellers will run their ads by their cannabis business lawyer for review before publishing to ensure they aren’t running afoul of the patchwork of rules and regulations surrounding these ads. CBD social media advertisements

Earlier this year, Twitter became the first social media company to allow cannabis companies to market their brands/products to customers in the U.S. Prior to that, the company had allowed advertising for hemp-derived CBD products – and only topical ones at that.

Now, Meta, the parent company of Instagram and Facebook, as well as new social networking platform Threads, announced it will allow cannabis advertising – but only for non-ingestible CBD products. Restrictions on hemp advertisements on these platforms are also easing. In a written statement announcing the new approach, the company said so long as the CBD products contain no more than 0.3 percent THC per the federal standard, it can be advertised – subject to certain rules.

Companies that produce CBD products for consumer sales need to be especially careful with respect to the potency of their product and proper labeling that does not make misleading medical claims. As our Los Angeles CBD lawyers can explain, these are the two fronts upon which most CBD product liability lawsuits and regulatory action were predicated on in 2022.preventing CBD lawsuits

Public acceptance of CBD and cannabis products has grown, use has expanded, and even the federal government has been steadily easing restrictions.

However, where companies are too often getting caught up in litigation and regulatory scrutiny is with respect to potency, mislabeling, and misbranding.

Let’s start with the risk of product liability claims. For those who are unfamiliar, product liability is when a consumer alleges that a product was defectively designed, defectively made, or the warning about the risks was inadequate. Claimants don’t need to prove negligence, but they do need to show the product was the cause or a major contributing factor to the plaintiff’s illness or injury.

The long-term adverse impacts of CBD (or lack thereof) aren’t really widely known because research on these products has been so restricted over the last several decades. The U.S. Food and Drug Administration has raised concern about the potential for CBD to interact negatively with certain medications, and that it might cause liver damage. But the extent to which this is true isn’t well-known because it hasn’t been thoroughly studied. These potential harms could end up being the subject of lawsuits in the future. President Joe Biden recently passed a law permitting advanced research on the risks and medical benefits of both cannabis and its derivatives – including hemp-derived CBD. Continue reading

If you’re in the Los Angeles CBD business, it’s important to avoid playing fast-and-loose with celebrity endorsements and/or likenesses. Sure, there are many celebrities who are vocal fans of cannabis and CBD products, and some even have their own brands. But as our Los Angeles CBD business attorneys can explain, false assertions of big-name support have led to multi-million-dollar payouts in a number of recent cases. If you do have the green light from a prominent figure to use their name and likeness to promote your product, it is imperative that you get it all clearly in writing – to protect your company, your employees, and your assets.Los Angeles CBD lawyer on celebrity endorsements

While a good many of these faux celebrity endorsement have come from scammers, a few have involved actual CBD companies.

Among the recent instances of celebrities publicly denouncing use of their likeness or phony endorsements for CBD products:

  • Tom Brady. The pro-footballer has flatly denied his purported endorsement of CBD and keto gummies, as depicted in a number of approved Facebook ads – some of them sexually-explicit and clearly scams.
  • Phil McGraw. The name and likeness of “Dr. Phil” was used by a scam website that led users to believe they were on the Fox News website, where there was an ad indicating his endorsement of CBD gummies. One article even stated McGraw and Brady were teaming up in their endorsement of CBD gummies. They had not.
  • Dolly Parton. The 77-year-old country music singer/songwriter issued a statement saying that, contrary to circulated claims on various social media ads, she had never been associated with or endorsed any keto oils or CBD product.
  • Keanu Reeves. “The Matrix” actor was compelled to release a statement last year clarifying that he had never endorsed any CBD gummy or CBD oil product, and had never been interviewed by any CBD company for its website.

Two recent cases that have led to litigation involved include “Jeopardy!” host Mayim Bialik and actor Clint Eastwood (and the company that owns the right to his likeness). Continue reading

Although it didn’t get a lot of splashy coverage when it first passed, the gargantuan appropriations bill signed by the president at the end of last year contained a piece of legislation that has some significant potential for expansion of the cannabis cosmetics industry. Los Angeles CBD business

The Modernization of Cosmetics Regulation Act of 2022 (better known as MOCRA), it’s the first time cosmetic rules have been updated by Congress through the Federal Food, Drug, & Cosmetics Act since it was passed in 1938. Other aspects of the law have been updated many times over as we’ve seen evolutions of technology, science, product safety, and responsible resourcing advocacy. Still, none of those expressly addressed makeup laws until MOCRA.

Prior to these changes, makeup companies didn’t legally have to test their products or the individual ingredients to ensure safety. Businesses didn’t have to register their production facilities with the FDA, abide by good manufacturing practice rules, or notify the government when there are adverse reactions (even life-threatening ones). Additionally, the FDA didn’t have the power to recall cosmetic products – even those that could be deadly. MOCRA rectifies all this and grants the FDA authority to oversee regulation of makeup products. (Small businesses may be exempt from certain requirements, depending on the specific circumstances.)

Cosmetics are defined not just as makeup, but those products intended for application to human bodies for cleaning, beautifying, altering appearance, or promoting attractiveness. Any product that promises to treat or prevent a condition or disease or alters some bodily function is classified as a “drug” by the FDA. It’s worth noting that CBD products can fall into both categories, but we’re specifically here just talking about CBD-infused cosmetics – though many do promise anti-inflammatory properties. These can include products like:

  • Lip balm and lip gloss
  • Moisturizers
  • Under eye serums
  • Hair creams
  • Scalp oil
  • Skin cleansers
  • Face masks
  • Deodorant
  • Mouthwash
  • Concealer/color corrector
  • Mascara

What Does This Mean for CBD Cosmetics Companies?

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CBD business operators currently have a sizeable economic advantage when it comes to their high-THC cannabis/extract counterparts. Thanks to the 2018 Farm Bill, their operations are legal, (in many jurisdictions) lightly taxed, and available through online sales.California CBD business

But what will it mean for the CBD side of things when/if marijuana products of all (or at least higher) THC levels becomes legal? Specifically, we’re talking about legalization of recreational marijuana. Here in California, as well as in 17 other states, Washington, D.C. and Guam, that’s already the reality. Yet CBD businesses continue not only to operate, but to thrive.

Our CBD business lawyers recognize the retail landscape may inevitably shift once recreational marijuana becomes legal, but we also believe in the strong likelihood the two can co-exist. Not everyone wants high-THC products – specifically in the realm of pet products, beauty topicals,  and cosmetics. Plus, there are a fair number of people who aren’t heavy users of THC, but may still want to indulge occasionally in a way that is safe.

Recent analysis reveal that the legal recreational marijuana market dwarfs the CBD market – $50 billion to $8 billion. Still, neither sector’s size is anything to sneeze at.

In shops that sell high-THC cannabis products, CBD product sales have fallen in recent years (at least so far as California goes). But it’s our theory that when adult use recreational marijuana becomes legal, there will be an increase in sales for both – particularly in mature markets. Continue reading

For years, the State of California dragged its heels on regulating hemp-derived CBD. Numerous legislative efforts had failed time-and-again – until last year, with the passage of AB-45, signed by Gov. Gavin Newsom, which allowed for the inclusion of hemp and CBD extracts in food, beverages, cosmetics, dietary supplements, processed pet foods and more – assuming they contained less than 0.3% THC. However, nothing has really happened since – until now. Just a few days ago, the California Department of Public Health (CDPH) has proposed emergency regulations – mostly dealing with registration for industrial hemp manufacturers. California CBD lawyer

As our Los Angeles CBD business attorneys can explain, the key points in the emergency action are as follows:

  • Hemp product manufacturers will be granted different types of registrations, licenses, and/or authorizations from the CDPH, depending on the type of product they make. Those that make many different types of hemp/CBD products may need numerous registrations.
  • Out-of-state hemp/CBD manufacturers that want to import products to California will need to register with the CDPH.
  • “Enrollment and oversight authorization” is required at each location, lasts one year, and cannot be transferred.
  • Applicants requesting oversight authorization must provide detained information about not only the type of product, but its sources, extract methods, etc. These must be signed under penalty of perjury.
  • Fees are based on gross revenue accrued in the 12 months prior. New applicants will need to estimate their fees, and the formulas for calculating them are a bit complex. The fee structures for CBD product types and extract manufacturers are different.

These are just the primary points of the emergency action. It’s imperative that anyone in the CBD business or hemp business in California consult with their business attorney to make sure all registration, oversight, and licensure paperwork is properly drafted and timely submitted. Continue reading

The 2018 Farm Bill left no question as to the legality of hemp when it removed the crop – and its derivatives like CBD – from the definition of “marijuana” as listed within the U.S. Controlled Substances Act. The measure gave the U.S. Department of Agriculture regulatory authority over how hemp could be grown under federal guidelines. That said, states were given the option to assert primary regulatory authority over hemp growth and production inside its own borders. States that wanted to do this needed to submit plans to the USDA. Los Angeles CBD Lawyer

Although states weren’t given a strict deadline for submission of their own plans, it was noted in USDA interim rules that previous federal statute governing cultivation of hemp (the 2014 Farm Bill) expires at the end of October. That means hemp industry insiders in states that don’t turn in their hemp cultivation and production plans prior to Oct. 31, 2020 may have issues if their practices are not consistent with federal law.

As a longtime Los Angeles CBD lawyer, I have been closely watching these developments in California. In 2019, state lawmakers passed SB-153, a measure that required the state’s attorney general and department of food and agriculture to team up and put forth a hemp production plan to the federal agriculture department by no later than May 2020. However, that did not happen. According to the USDA, the feds are still waiting on California’s plan. Continue reading

A growing number of U.S. companies selling hemp products and hemp-derived CBD products are forming international partnerships with suppliers. These business agreements, which frequently include arbitration clauses, must be carefully drafted by an experienced corporate CBD attorney. As a recent ruling by the U.S. Court of Appeals for the Eleventh Circuit showed, arbitration agreements and awards are likely to be enforced. Los Angeles corporate CBD lawyer

Why Cannabis Companies, CBD Corporations Use Arbitration Agreements

As our Los Angeles corporate CBD lawyers can explain, many cannabis company contracts contain arbitration clauses. Some examples include sales contracts, operating agreements, employment contracts and intellectual property licenses. Dispute resolution should never be an afterthought, so this provision is important. Continue reading

Professional athlete endorsements are gold mines for any health and fitness product. Men’s Health magazine reported earlier this year on the unlikely crop of new cannabis advocates found in former and current pro athletes. Many, like former New England Patriots Super Bowl champion Rob Gronkowski, insist cannabis and CBD are superior options for treatment of chronic pain compared to the powerfully addictive and dangerous opiates doctors have been prescribing them for years. They report that with CBD, they are sleeping better, have improved muscle recovery, suffer fewer symptoms of chronic pain, anxiety and chronic traumatic encephalopathy – without the high or risk of addiction.cbd advertising lawyer

Some have gone on record to endorse their favorite brands of CBD oils and products, joining dozens of A-list celebrities who do the same.

This has resulted in Los Angeles cannabis advertising lawyers being asked whether these endorsements violate state or federal advertising laws.

Truth is, this is still a relatively new area of law, which is why each party should consult with an attorney before soliciting, offering or publishing a CBD advertisement or endorsement. Continue reading

The legal status of cannabidiol, better known as CBD, the popular extract of the cannabis plant, remains something of a mystery – even after the changes brought about by the 2018 Farm Bill that made low-THC hemp and its derivatives legal. Los Angeles cbd lawyers

The U.S. Food and Drug Administration had already assumed the position that the substance could not lawfully be sold in food. Now, the agency has released a sharply-worded warning to the public about the possible dangers of CBD and issued notices to more than a dozen large companies that sell it, citing alleged violations of the U.S. Food, Drug and Cosmetics Act. Five of those companies are in California and one is in Los Angeles. Similar warning letters had been sent to other companies.

They are accused of unlawfully selling CBD products interstate for purposes claiming to prevent, treat, diagnose, mitigate or cure disease of a serious nature, like cancer. Some were a double violation because they were included in food products and/or advertised as being dietary supplements. The FDA press release on the warning letters noted that regulators haven’t approved any CBD products, save for those issued by prescription to treat certain rare forms of pediatric epilepsy. Even then, the agency notes that CBD might cause liver injury, but have determined the benefits of treatment outweigh the potential health concerns.

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